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NEWS RELEASE 2007
ABA Media Contact: John Hall
(202) 663-5473
E-mail: jhall@aba.com
ABA STATEMENT ON PUBLIC CITIZEN’S
ARBITRATION REPORT
by Edward L. Yingling, ABA president and CEO
"This report varies wildly from other respected research on the topic and merits close scrutiny of its methodology.
“What their report doesn’t say is that arbitration is one of the fairest, most efficient methods for resolving complex disputes between consumers and businesses of all kinds, including lenders. Consumers often prefer arbitration to going to court, because arbitration offers a faster, less costly alternative to complex and expensive litigation, most often resulting in similar settlements.
“Independent, nationwide research by Ernst & Young shows that consumers are more likely to prevail than the businesses involved in the arbitration process. More than half (55 percent) of the arbitrations examined in the study were resolved in the consumer’s favor. Further, the majority of consumers (69 percent) report being satisfied or very satisfied with the arbitration process.
“Another national study by Harris Interactive (see below) demonstrates that clear majorities of consumers who have engaged in arbitration found it to be faster, simpler and less expensive than legal proceedings. Indeed, the fact that two-thirds of consumers say they would likely use arbitration again is a clear testament to the value of this process.”
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The American Bankers Association, on behalf of the more than two million men and women who work in the nation's banks, brings together all categories of banking institutions to best represent the interests of this rapidly changing industry. Its membership-which includes community, regional and money center banks and holding companies, as well as savings associations, trust companies and savings banks-makes ABA the largest banking trade association in the country.
Harris Interactive Survey
• 74% of respondents found arbitration to be faster
• 63% of respondents found arbitration to be simpler
• 51% of respondents found arbitration to be less expensive
• 66% percent of respondents said they would likely use arbitration again
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