Category Archives: Class Actions

More Than 400 Professors From All 50 States Support CFPB Arb Rule; Oppose Blocking It

The letter is here.  Marketwatch has a report headlined 400 college professors say you should be able to sue Equifax and other financial institutions. Excerpt from the report: The professors are sending the letter Monday because it is Sept. 25, the anniversary of when Congress passed the Seventh Amendment to the U.S. Constitution in 1791, which states: […]

We need regulators—but they are not a substitute for class actions

by Jeff Sovern A frequent claim by class action critics is that we don’t need class actions because we have regulators.  For example. Alan Kaplinsky recently tweeted that class actions were not needed in the wake of the Equifax scandal because the CFPB is expected to act.  But the truth is we need both regulators […]

More and More Republicans Support the CFPB Arbitration Rule

by Jeff Sovern The latest example is an op-ed by Dean Clancy, a former senior Republican official in Congress and the White House, in the American Banker, CFPB arbitration rule is an undeniable win for consumers.  Clancy takes issue, as I did, with a recent American Banker piece by Joseph Cioffi.  Clancy explains: [Cioffi assumes] Individual arbitrations […]

Will Equifax Change the Prospects for Congress Blocking the CFPB Arbitration Rule?

by Jeff Sovern That's the question discussed in Ian McKendry's article in the American Banker, GOP undeterred by Wells, Equifax in seeking arbitration rule repeal. Arbitration advocates hope and predict it won't, as this except shows: "I don't necessarily want to conflate" the Equifax breach "with the arbitration rule," said [Senator Thom] Tillis [R-SC]. The financial […]

Have the Arbitration Sharks Jumped the Shark?

by Jeff Sovern On Saturday, I posted an entry, Kaplinsky & Levin Concede "Consumers rarely pursue individual arbitration" But Miss Mark on Why. Maybe it irritated Alan and Mark, because they then posted Professor Sovern Disagrees with Senator Warren and Concedes that Consumers Do Well in Arbitration But Raises Another Red Herring. I guess I […]

Kaplinsky & Levin Concede “Consumers rarely pursue individual arbitration” But Miss Mark on Why

by Jeff Sovern Earlier this week, Senator Elizabeth Warren issued a press release about the responses she had received from Bank CEOs to her questions about the CFPB's arbitration rule, Responses from Bank CEOs Demonstrate Positive Impact of CFPB Arbitration Rule, Undermine Industry Case for Reversal.  The press release contains a lot of interesting information, […]

Some Comments on Recent Op-Eds Opposing the CFPB Arbitration Rule

by Jeff Sovern I wanted to comment on a couple of op-eds opposing the CFPB arbitration rule.  One is Joseph Cioffi's piece in the American Banker, headlined CFPB arbitration rule will still pose costs to consumers.  Though Cioffi (Chair of the Insolvency, Creditors’ Rights & Financial Products Practice Group at Davis & Gilbert) sees the arbitration rule as […]

Am Banker: Equifax breach may kill repeal of CFPB mandatory arbitration rule

Here . Excerpt: The Equifax revelations come at exactly the wrong time for Republicans, who had been hoping as late as Thursday to rapidly push ahead next week on a vote to overturn the rule. * * * * * * The Equifax breach—and its controversial mandatory arbitration clause—could push some . . . Republicans […]

The Equifax Data Breach and How Equifax is Stealthily Using Arbitration to Defeat Claims by Injured Consumers

by Jeff Sovern Scott posted yesterday about the Equifax data breach, which may end up being as significant a consumer scandal as the Wells Fargo unauthorized account fiasco.  As has been pointed out elsewhere, the disclosure of the Equifax announcement is extraordinary, coming on the same day Congress considered a bill to limit damages against […]