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CBA Statement on Phase Two of CFPB Study on Arbitration
CBA’s Dong Hong, Vice President, Regulatory Counsel, to testify at today’s CFPB Field Hearing on Arbitration in Newark, N.J.
CBA’s President and CEO Richard Hunt issued the following statement after the Consumer Financial Protection Bureau (CFPB) released the findings of phase two of its study on the use of mandatory arbitration clauses in connection with consumer financial products and services.
“For nearly 90 years, arbitration has allowed consumers quick and easy access to an affordable option for dispute resolution. As a last resort, if legal recourse is necessary, arbitration has proven to be the best path forward because it is mutually beneficial to all parties—both consumers and lenders. We look forward to reviewing this study in its entirety, and we look forward to working with the CFPB to improve consumers’ understanding of the arbitration process and how it can benefit them.”
The Dodd-Frank Act requires the CFPB to conduct a study of the use of pre-dispute arbitration clauses in consumer financial markets. The Act also provides the CFPB with the sole authority to issue regulations on the use of these arbitration clauses if it believes doing so is in the public interest for the protection of consumers, and consistent with the results of the study. In December of 2013, the CFPB released phase one of its study on the use of mandatory arbitration clauses in connection with consumer financial products and services. Today, it released phase two.
At 11 a.m. this morning, the CFPB will hold a field hearing to discuss arbitration. The event will feature remarks by CFPB Director Richard Cordray, followed by a panel discussion with consumer groups and industry representatives. CBA’s Dong Hong, Vice President, Regulatory Counsel, will be a panelist.
Founded in 1919, the Consumer Bankers Association (CBA) is the trade association for today's leaders in retail banking - banking services geared toward consumers and small businesses. The nation's largest financial institutions, as well as many regional banks, are CBA corporate members, collectively holding well over half of the industry's total assets. CBA’s mission is to preserve and promote the retail banking industry as it strives to fulfill the financial needs of the American consumer and small business.