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.
  • May 18, 2016
    WASHINGTON, DC (May 18, 2016) — Dong Hong, Vice President and Regulatory Counsel at the Consumer Bankers Association, today testified before the House Financial Services Subcommittee on Financial Institutions and Consumer Credit about the CFPB’s arbitration proposal. The following are excerpts from his testimony: “A fundamental principal of banking is to establish strong relationships with...
  • May 18, 2016
    The House Subcommittee on Financial Institutions and Consumer Credit determined in a hearing on Wednesday that the CFPB’s proposed rule to ban arbitration clauses in business contracts will result in higher costs to consumers and less access to financial products. Witnesses at the hearing included Dong Hong, VP, Regulatory Counsel, Consumer Bankers Association; Jason Scott Johnston, Henry L. and...
  • May 18, 2016
    A House panel on Wednesday questioned whether the Consumer Financial Protection Bureau (CFPB) overstepped its bounds with a rule cracking down on waivers meant to keep financial institutions out of court. The CFPB earlier this month proposed a rule banning forced arbitration clauses in contracts for financial products. Such clauses prevent consumers from suing or joining class-action lawsuits...
  • May 18, 2016
    Written Statement of Dong Hong Vice President, Regulatory Counsel Consumer Bankers Association Before the House of Representatives Committee on Financial Services Subcommittee on Financial Institutions and Consumer Credit For the Hearing “Examining the CFPB’s Proposed Rulemaking on Arbitration: Is it in the Public Interest and for the Protection of Consumers?” May 18, 2016 Chairman Neugebauer,...
  • May 18, 2016
    A subcommittee of the House Financial Services Committee is holding a hearing today entitled “Examining the CFPB’s Proposed Rulemaking on Arbitration: Is it in the Public Interest and for the Protection of Consumers?” The subcommittee is posing the question to a badly skewed set of witnesses. Two of them are representatives of industry groups (the U.S. Chamber of Commerce and the Consumer Bankers...
  • May 18, 2016
    By BEN WHITE 05/18/16 08:00 AM EDT LOCKHART/WILLIAMS CRITICIZE TRUMP COMMENTS — OK, so Fed Presidents Dennis Lockhart of Atlanta and John C. Williams of San Francisco would not directly attack Donald Trump in my interview with them Tuesday. The Fed doesn’t engage in politics, after all, at least not overtly. But they did both take serious issue with Trump’s remarks that the U.S. could never...
  • May 18, 2016
    Washington, D.C. (May 18, 2016) – Dong Hong, Vice President and Regulatory Counsel at the Consumer Bankers Association, today testified before the House Financial Services Subcommittee on Financial Institutions and Consumer Credit about the CFPB’s arbitration proposal. The following are excerpts from his testimony : “A fundamental principal of banking is to establish strong relationships with...
  • May 17, 2016
    Banks keep saying over and over that arbitration proceedings, as opposed to class-action lawsuits, are the best way for consumers to handle disputes. Yet faced with the prospect of no longer being able to deny consumers the right to sue them, the banking industry is expected to take the deliciously ironic step of suing the federal government. At issue is a proposed rule from the Consumer...
  • May 16, 2016
    Arbitration as a means of dispute resolution is intended to help consumers and businesses save time and money and achieve fair results when compared to traditional litigation. Millions of contracts for consumer financial products and services have a pre-dispute arbitration clause that requires consumers and financial institutions to resolve their disputes through arbitration, rather than through...
  • May 16, 2016
    Consumers angry with a bank, payday lender or credit card issuer may soon get their day in court, courtesy of a new Consumer Financial Protection Bureau proposal on forced arbitration. "Arbitration" is one of those common fine-print terms that people gloss over, but that should give them pause. "Consumers are signing away their rights," said Lauren Saunders, associate director of the National...

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