Jean R. Sternlight of the University of Nevada, Las Vegas has written Hurrah for the Consumer Financial Protection Bureau: Consumer Arbitration As a Poster Child for Regulation, 48 St. Mary's Law Journal 343 (2016). Here is the abstract: Drawing on economic, psychological and philosophical considerations, this Essay considers whether consumers should be "free" to "agree" […]
Category Archives: Arbitration
Here. Excerpt: Big Lie No. 1: Bank lobbyists claim that people recover more in arbitration than in class actions: $32 per person in class actions versus $5,400 per person in arbitration, citing the CFPB’s study. * * * The very few people who take the time and expense to pursue an individual arbitration — only […]
Here. Excerpt: A Senate GOP aide said that supporters of the resolution do not have the votes needed to proceed on the floor, given the absence of Sen. John McCain (R-Ariz.), who has returned to Arizona to receive medical treatment for brain cancer. A July 28 statement from McCain’s office said he does not plan […]
by Jeff Sovern Here. My favorite sentence points out that in an average year, "[a]t least 6,800,000 consumers get cash relief in class actions—compared with just 16 consumers who receive cash relief in arbitration, according to available data." Here is a longer excerpt: Opponents of the rule have suggested that the bureau’s own findings show consumers […]
by Jeff Sovern Last week, Gretchen Morgenson at the Times broke the story of how hundreds of thousands of auto loan borrowers at Wells Fargo had been charged for car insurance they didn't need. Now Kate Berry at the American Banker reports on the arbitration connection: it turns out that many of the contracts provide […]
by Jeff Sovern Law360's Evan Weinberger has the story here. The rule still could be blocked by Congress under the Congressional Review Act or in the courts. One down, two to go.
by Jeff Sovern Republican pollster Robert Carpenter has written Republicans beware: Your voters like tough rules on Wall Street in the Washington Examiner. Excerpt: Republicans do the bidding of Wall Street at their own peril. That is the message of a new poll that I helped conduct around financial reform and consumer protection last month […]
Then take a look at this story from the Pulitzer Prize-winning Center for Public Integrity: Who is killing the CFPB’s arbitration rule? Excerpt: The financial industry’s hefty investment in the campaigns of House members appeared to pay off this week when that chamber voted to kill a new rule that allows consumers to file class-action lawsuits […]
by Jeff Sovern As expected but still sad.
by Jeff Sovern This is based on Fred O. Williams's story at CreditCards.com. The vote was 229 to 184, though he seems to indicate that this was the final vote. I think it was just on the vote to consider the bill. Williams's article, titled DIY credit card arbitration: You may be able to opt out, […]