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.
  • July 13, 2017
    The Consumer Financial Protection Bureau's arbitration rule , issued Monday, could put dealerships and auto lenders at risk for class-action lawsuits. But some experts questioned whether the rule will ever take effect, while various industry associations quickly issued statements denouncing the rule. The rule prohibits banks and other financial services companies from including mandatory...
  • July 13, 2017
    CARY, N.C. - Clearly the industry is “disappointed” that the Consumer Financial Protection Bureau earlier this week issued a final rule prohibiting the use of class action waivers in arbitration clauses. The American Financial Services Association, the National Independent Automobile Dealers Association and the American Bankers Association all used that specific adjective when relaying their...
  • July 12, 2017
    A decision by the Consumer Financial Protection Bureau that financial companies may not require consumers to resolve disputes in arbitration, rather than in class action lawsuits, prompted strong criticism from industry groups, while consumer advocates cheered the new rule. A move by the Consumer Financial Protection Bureau to ban mandatory arbitration in consumer contracts with financial...
  • July 12, 2017
    The lucrative and costly business of class-action lawsuits has been turned upside down by a new federal rule. And the fight to save or kill it has just begun. After years of review on the subject, the Consumer Financial Protection Bureau, an independent federal watchdog agency, declared a new rule Monday that bans banks, credit card companies, payday lenders and other financial firms from...
  • July 12, 2017
    Consumers can now sue banks in class-action lawsuits. The Consumer Financial Protection Bureau said Monday financial companies will no longer be allowed to force customers to use arbitration to settle group disputes, restricting the industry's favored legal tool after years of review. Currently, credit card and bank companies often insert arbitration clauses in their contracts to prevent...
  • July 12, 2017
    In a much-anticipated move, the Consumer Financial Protection Bureau finalized its long-pending arbitration rule. Reaction from Capitol Hill, consumer groups, and banking associations followed expected lines, from cheers to jeers, depending on the source. The rule will not affect the use of mandatory arbitration clauses in existing consumer agreements of the types it covers and won’t have a...
  • July 11, 2017
    NEW YORK (AP) — Consumers could band together to sue their banks or credit card companies under a federal rule issued Monday that's likely to face resistance from Congressional Republicans and the White House. The Consumer Financial Protection Bureau decided to ban most types of mandatory arbitration clauses, which require credit card or bank customers to use a mediator when they have a dispute...
  • July 11, 2017
    The government’s consumer watchdog finalized a rule Monday that will make it easier for people to challenge financial companies in court. The rule by the Consumer Financial Protection Bureau targets arbitration clauses, which are frequently tucked into the fine print of user agreements for credit cards, bank accounts and other consumer products. As a condition for receiving services or products,...
  • July 11, 2017
    A US consumer-protection agency is moving forward with its proposed rules to prevent financial institutions from requiring customers to give up the right to band together and sue over alleged wrongdoing affecting financial products and services like banks accounts and credit cards. The US Consumer Financial Protection Bureau on Monday released a final version of its long-awaited rule, which takes...
  • July 11, 2017
    The Consumer Financial Protection Bureau moved Monday to ban banks and other companies from preventing class-action lawsuits related to bank accounts, credit cards, and other financial products, a move that is likely to elicit pushback from the Republican-led Congress. The agency announced that it had finalized a rule to prevent mandatory arbitration clauses in financial products, which steer...

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