Nov
02
The signing marks a hard-fought victory for the banking industry and for ABA, which has been vocally opposed to the rule since it was proposed in 2015. In comments to the CFPB and lawmakers, ABA repeatedly pointed out that the arbitration rule would have imposed significant costs on consumers and banks of all sizes while enriching plaintiffs’ lawyers.
In an op-ed for The Hill newspaper this morning, Nichols and U.S. Chamber of Commerce President and CEO Tom Donohue wrote that the repeal is a victory for consumers. "Arbitration provides vastly better outcomes for consumers," they wrote. "The CFPB’s study of the topic showed that in cases where arbitrators found for consumers and granted an award, the average award was $5,389. Meanwhile, in 87 percent of class action settlements the bureau studied, consumers received nothing. The 13 percent of those that resulted in settlements only got money to an estimated 4 percent of class members--and the average amount was just $32.35." Read the op-ed.
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