Arbitration

Arbitration has been used as an alternative to litigation as a method of amicably resolving disputes for over 80 years. In many cases, arbitration has benefited consumers by providing quicker and less expensive alternatives to litigation. Also, consumers with low value claims tend to benefit from the arbitration process, as attorneys are more reluctant to represent consumers that have low value claims. CBA believes arbitration can be a less costly and more effective method of dispute resolution for consumers and businesses, and attempts to ban pre-dispute arbitration are potentially harmful to consumers and may result in increased costs to consumers and unnecessary delay in deciding controversies arising from disputes. CBA believes arbitration is a meaningful and effective process for consumers and businesses to resolve disputes, and CBA is committed to efforts to oppose anti-arbitration legislation.
  • March 8, 2022
    Dear Chair Brown and Ranking Member Toomey: The undersigned organizations appreciate the opportunity to provide comments to the Committee on Banking, Housing, and Urban Affairs in advance of the March 8th hearing titled “Examining Mandatory Arbitration in Financial Service Products.” Arbitration is a fair, effective, and less expensive means of resolving disputes compared to going to court. It...
  • March 4, 2022
    Dear Chairman Brown and Ranking Member Toomey: I write on behalf of the Consumer Bankers Association (CBA) regarding the hearing entitled “Examining Mandatory Arbitration in Financial Service Products.” CBA is the voice of the retail banking industry whose products and services provide access to credit for consumers and small businesses. Our members operate in all 50 states, serve more than 150...
  • February 10, 2021
    Dear Chairman Nadler, Chairman Cicilline, Ranking Member Jordan, and Ranking Member Buck: I write on behalf of the Consumer Bankers Association (CBA) regarding the hearing scheduled for Thursday, February 11, 2021: “Justice Restored: Ending Forced Arbitration and Protecting Fundamental Rights.” CBA is the voice of the retail banking industry whose products and services provide access to credit...
  • June 26, 2019
    Our nation was founded with three separate branches of government, each designed to serve as a check on the other two. The Judicial Branch plays the pivotal role of ensuring our laws are applied equally and fairly. While our court system is often considered the gold standard for fairness, it is not immune from people attempting to use it as a tool to turn a profit. The Consumer Financial...
  • November 3, 2017
    Signed, Sealed and Delivered: President Trump Signs Arbitration Rule Repeal! A big win for consumers occurred this past Tuesday when President Trump signed a resolution repealing the CFPB’s arbitration rule. If this rule had gone into effect, it would have harmed consumers. From the beginning the rule was never about protecting American consumers and the CFPB’s own study backs that up. The only...
  • November 3, 2017
    By Nick Zulovich Senior Editor WASHINGTON, D.C. - President Trump followed through this week by signing H.J. Res. 111, which nullifies the Consumer Financial Protection Bureau's rule prohibiting the use of a pre-dispute arbitration agreement to prevent a consumer from filing or participating in certain class action suits. The final step in the process of canceling the rule that received sizable...
  • November 1, 2017
    WASHINGTON – Consumer Bankers Association President and CEO Richard Hunt released the following statement on President Trump’s signing of a Congressional Review Act resolution to repeal the Consumer Financial Protection Bureau’s (CFPB) arbitration rule: “The CFPB’s rule was never about protecting consumers; rather, it was about protecting trial lawyers and their wallets. The Bureau’s own study...
  • November 1, 2017
    WASHINGTON — President Trump has signed the congressional measure invalidating the Consumer Financial Protection Bureau’s arbitration rule, killing the regulation that was unpopular with banks and other financial institutions. The president signed H.J. Res. 111 in a closed meeting Wednesday afternoon, offering no public statement. The White House confirmed that the president signed the resolution...
  • November 1, 2017
    President Trump on Wednesday signed a repeal of the Consumer Financial Protection Bureau’s rule on forced arbitration, winning praise from banking and business groups. Trump approved the resolution to repeal the CFPB rule, meant to prevent banks and credit card companies from blocking customers from joining class-action lawsuits against them, in a private Oval Office signing. The House passed a...
  • October 31, 2017
    President Donald Trump will sign legislation overturning the Consumer Financial Protection Bureau’s mandatory arbitration rule Wednesday afternoon, according to a White House official. The president’s decision comes despite a personal appeal from CFPB Director Richard Cordray and veterans groups, who opposed a congressional vote to overturn the consumer watchdog's rule using the Congressional...

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