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CBA Supports Congressional Efforts to Overturn CFPB’s Arbitration Rule
Senator Mike Crapo (R-ID) and Congressman Keith Rothfus (R-PA) introduce resolutions overturning CFPB’s Arbitration Rule
Washington, D.C. – Richard Hunt, President and CEO of the Consumer Bankers Association (CBA), released the following statement in response to the introduction of Senate and House resolutions under the Congressional Review Act to overturn the CFPB’s arbitration rule by Senate Banking Committee Chairman Mike Crapo (R-ID) and Congressman Keith Rothfus (R-PA).
“We applaud Senator Mike Crapo and Congressman Keith Rothfus for introducing resolutions overturning the CFPB’s arbitration rule. Arbitration has long provided a faster, more cost-effective, and higher recovery means of addressing consumer disputes than class action lawsuits. The CFPB’s own study shows the average consumer receives $5,400 in cash relief when using arbitration and just $32 through a class action suit. The real benefactors of the CFPB’s arbitration rule are not consumers, but trial lawyers who pocket over $1 million on average per class action lawsuit. Additionally, class action attorneys take on average 21 percent from their clients’ cash recoveries while some take as much as 63 percent. We encourage both the Senate and the House to move swiftly and overturn the CFPB’s anti-consumer arbitration rule,” said CBA President & CEO Richard Hunt.
About the Consumer Bankers Association
The Consumer Bankers Association represents America’s retail banks above $10 billion in assets. We advance legislation and promote policies geared toward creating a stronger industry and economy. Established in 1919, CBA’s corporate member institutions account for 1.6 million jobs in America, extend roughly $3 trillion in consumer loans, and provide $270 billion in small business loans. Follow us on Twitter @consumerbankers.