By Rob Nichols, ABA president and CEO
“Consumers will get less and pay more if the CFPB’s proposal to sideline arbitration and promote class actions is ultimately adopted. Banks resolve the overwhelming majority of disputes quickly and amicably. When needed, arbitration is an efficient, fair and low-cost method of resolving disputes in a fraction of the time — and at a fraction of the cost — of expensive litigation. This helps keep costs down for all consumers.
“Despite acknowledging these clear benefits in its 2015 study, the CFPB has chosen to put the future of arbitration at risk by requiring companies to face a flood of attorney-driven class action suits from which consumers receive virtually nothing. We hope the CFPB will use the public comment period to rethink its approach to regulating arbitration in a way that puts consumers — not class action lawyers — first.”