Category Archives: Class Actions

Senate Could Vote on CRA Resolution to Block Arbitration Rule Tonight . . .

by Jeff Sovern . . .  or  it could come later in the week. Or not. My speculation is that the Senate leadership will call the vote if they think they have the votes to pass the resolution but otherwise they will let it go until closer to the deadline. So the real question is […]

Am Banker Reports on Economists Who Are Critical of the OCC Claims in the CFPB-OCC Data Dispute

by Jeff Sovern The article, by Kate Berry and Ian McKendry, is headlined Fight to kill CFPB arbitration rule could rest on whose data is right. Here's some of what the article says about the OCC claims, though the article has more than I can insert here. "The uncertainty of the OCC's estimate is very large, […]

Politico Got Two Statisticians to Look at the CFPB-OCC Arbitration Statistical Dispute

by Jeff Sovern The story is headlined 'Plague on both your houses': Cordray, Noreika get scolding from statisticians. Excerpt: " * * * There isn’t strong evidence either way,” said Bruce Meyer, a professor at the University of Chicago. “There is weak evidence that says more than likely there is a positive effect on the cost […]

WSJ Report on CFPB Response to Norieka’s Arbitration Op-Ed

by Jeff Sovern The Wall Street Journal, in a story headlined Regulator Fight Flares Anew Over Arbitration Rule As GOP Gears Up To Vote, reports on the CFPB response to the Norieka op-ed I wrote about earlier: The CFPB countered Mr. Noreika’s attack by publishing a new report on the rule’s effect on consumers, arguing there […]

Two Reasons Comptroller Norieka is Wrong About Arbitration Clauses

by Jeff Sovern Acting Comptroller of the Currency and former bank lawyer Keith Norieka has an op-ed in The Hill, Senate should vacate the harmful consumer banking arbitration rule, that is seriously flawed.  I'm going to write about two of those flaws here. First, Norieka concludes by writing: Instead of mandating only one way to resolve […]


by Jeff Sovern Here.  Lots of irony in this one, as you can tell from the headline.  A sample: Eighteen groups representing thousands of corporations and banks filed the lawsuit against the Consumer Financial Protection Bureau last Friday in federal court in Dallas. Oddly, they did not attempt to individually resolve the dispute through an arbitration process, […]

Issacharoff Book Chapter on Class Actions

Samuel Issacharoff of NYU has written Collective Action and Class Action, in THE CLASS ACTION EFFECT: FROM THE LEGISLATOR’S IMAGINATION TO TODAY’S USES AND PRACTICES, (Catherine Piché, ed., Éditions Yvon Blais, 2018 Forthcoming).  Here is the abstract: Over the past 25 years, class actions have emerged as a central feature of Canadian law. The conceptual […]

Though CFPB Found Credit Card Issuers That Dropped Arb Clauses Didn’t Raise Prices, OCC’s Norieka Claims CFPB Arb Rule Will Raise Cost of Lending 25%

by Jeff Sovern The ABA Banking Journal (that's the banking ABA, not the lawyers' ABA) has the story here.  Except: The OCC has conducted a study finding that the Consumer Financial Protection Bureau’s arbitration rule is likely to increase the cost of credit by about 25 percent once lenders factor in the cost of class action litigation, […]

Senate Could Vote on CFPB Arb Rule This Week, Even Today

by Jeff Sovern Why this week?  Deepak Gupta speculated on Twitter: Why is GOP pushing this vote now? Possibly to get ahead of hearings next week at which Equifax and Wells Fargo execs will have to testify. But if that's true, that means that arbitration supporters expect that those hearings will generate opposition to arbitration. […]