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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 11, 2017The 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...
- July 11, 2017U.S. banks and credit card companies could be prevented from blocking customers from banding together to sue them under a rule released by the country's consumer finance agency on Monday. In releasing the rule, which goes into full effect in eight months, the Consumer Financial Protection Bureau fired the first shot in a likely brutal political battle between Republicans and Democrats over...
- July 11, 2017The U.S. Consumer Financial Protection Bureau is making it easier for customers to sue banks, a move sure to rile Wall Street and congressional Republicans. Financial firms will be restricted in using mandatory arbitration to block class-action lawsuits, the CFPB said in a statement Monday. Clauses requiring arbitration to settle disputes are inserted routinely in contracts for credit cards,...
- July 10, 2017With the ink barely dry on the Consumer Financial Protection Bureau's final arbitration rule Monday, defenders and critics of the rule were already girding for a congressional fight over its ultimate fate. The rule, which is meant to allow consumers to more easily form or join class action lawsuits, is widely unpopular among banks and congressional Republicans, who have vowed to repeal it through...
- July 10, 2017NEW YORK (CNNMoney) -- It just got easier for you to sue your bank and credit card company. The Consumer Financial Protection Bureau issued a new rule Monday that prevents companies from using arbitration clauses to stop consumers from bringing class action lawsuits. The clauses force people to "go it alone or give up," said CFPB Director Richard Cordray. "Our new rule will stop companies from...
- July 10, 2017On Monday, July 10, 2017, the CFPB issued a final arbitration rule pursuant to section 1028 of the Dodd-Frank Act. Under this section, the CFPB is required to study the use of arbitration agreements in the consumer financial markets. Once completed, the Bureau is then authorized to prohibit, condition, or limit the use of arbitration agreements if it is in the public interest, for the protection...July 10, 2017The average consumer receives $5,400 in cash relief when using arbitration; $32 through a class action suit Washington, D.C. – Richard Hunt, President and CEO of the Consumer Bankers Association (CBA), released the following statement in response to the issuance of the Consumer Financial Protection Bureau’s (CFPB) final arbitration rule. “Arbitration has long provided a faster, better, and more...July 10, 2017Banks and financial services companies will see their ability to require out-of-court arbitration in class action disputes with consumers limited by a Consumer Financial Protection Bureau rule set go into effect within the next year, setting up a likely partisan fight over whether Congress should intervene. The CFPB announced Monday that it would finalize its so-called “forced arbitration” rule...June 8, 2017On Thursday, June 8, 2017, the U.S. House of Representatives passed House Financial Services Committee Chairman Jeb Hensarling’s (R-TX) alternative to Dodd-Frank, the Financial CHOICE Act, H.R. 10. The bill passed by a partisan vote of 233 to 186. With a structured rule in place, only six amendments were considered, keeping the bill substantially similar to the version that passed the House...February 23, 2017Republicans and the Consumer Financial Protection Bureau are playing a game of chicken over a proposal that would restrict banks, credit unions and other lenders from using mandatory arbitration clauses. Republicans stand ready to deploy a rarely used legislative process called the Congressional Review Act if the CFPB finalizes the arbitration plan, which would ban clauses that prevent consumers...