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 13, 2015
    CBA LIVE Sets New Attendance Record If you are looking to join with retail banking's decision makers and better understand the mind of the consumer, there is no better place than CBA LIVE, now just 10 days away. On Thursday, we surpassed our all-time record with the registration of the 1,212th attendee. Combined with our record number of bankers (575), these registration numbers show CBA LIVE is...
  • March 13, 2015
    CFPB Holds Field Hearing on Arbitration On Tuesday, March 10, 2015, the CFPB held a public field hearing in Newark, N.J., to discuss the use of arbitration agreements in consumer financial products and services; Dong Hong, CBA's Vice President and Regulatory Counsel, served as a panelist at the hearing. In conjunction with the field hearing, the CFPB issued its report on mandatory pre-dispute...
  • March 11, 2015
    In the latest regulatory claim about what finance companies might be doing wrong, the Consumer Financial Protection Bureau said this week that arbitration agreements restrict consumers’ relief for disputes with financial service providers by limiting class actions. The Consumer Bankers Association and the American Financial Services Association quickly pushed back against the CFPB’s assertions,...
  • March 10, 2015
    The top U.S. consumer watchdog said on Tuesday that arbitration clauses used by companies to dodge lawsuits take away consumers' rights to sue in courts and do not provide much relief to them. The findings by the U.S. Consumer Financial Protection Bureau raise the prospect that the agency could move to regulate the pre-dispute arbitration practice that U.S. companies say helps prevent petty...
  • March 10, 2015
    The finance industry faces a steep, uphill battle in trying to convince the Consumer Financial Protection Bureau that its common use of arbitration agreements is beneficial for consumers. The CFPB released a 728-page study on Tuesday showing that most consumers aren't aware they have agreed to binding arbitration when they sign financial contracts and that millions could be missing out on refunds...
  • March 10, 2015
    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...
  • March 10, 2015
    Companies routinely put language into the fine print of loan agreements, credit card contracts and other financial products that drastically reduce the chances that a consumer with a complaint will get relief, according to a report released today by the Consumer Financial Protection Bureau. Most consumers, or more than 75 percent of those surveyed by the agency, have no idea if they are subject...
  • March 10, 2015
    BANKS NOT HAPPY ABOUT PROSPECT OF NEW RULES: Consumer Bankers Association President Richard Hunt: "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...
  • February 27, 2015
    CFPB to Host Arbitration Field Hearing in Newark Earlier this week, the CFPB posted notice that next month in Newark, N.J. it intends to hold a field hearing on arbitration. According to the CFPB, the hearing will take place on March 10, 2015, at 11 a.m. EST and will feature remarks from Director Richard Cordray, as well as the industry, consumer groups and others. The Dodd-Frank Act requires the...
  • February 27, 2015
    Regulators Release Guidance to Encourage Youth Savings Programs On Wednesday, February 25, 2015, the Financial Literacy Education Commission ( FLEC ) held a public meeting at the U.S. Department of Treasury in Washington, D.C., which focused on youth savings programs, and highlighted partnerships between the public and private sector to encourage strong financial skills in young people. The...

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