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 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...
  • July 11, 2017
    U.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, 2017
    The 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, 2017
    With 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, 2017
    NEW 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, 2017
    On 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...

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