For Immediate Release
July 25, 2017
​ABA Media Contact: Jeff Sigmund
(202) 663-5439
Email: jsigmund@aba.com
Follow us on Twitter: @ABABankers

ABA Statement: House Vote on Arbitration Rule a Win for Consumers

By Rob Nichols, ABA president and CEO

​     “We applaud members of the House for taking a stand on behalf of consumers by voting to overturn the CFPB’s arbitration rule. Today’s action is critical to ensuring the Bureau doesn’t provide trial lawyers with a regulatory windfall at consumers’ expense. 

     “In class-action lawsuits, the spoils go overwhelmingly – and sometimes exclusively – to a small group of highly motivated trial lawyers who specialize in filing a large volume of often frivolous litigation.  According to the Bureau’s own study, consumers get nothing in 9 out of 10 class actions, and receive an average of just $32 in the remaining cases.  By contrast, the CFPB found those who prevail in arbitration receive an average award of $5,389. 
 
     “We thank House lawmakers for today’s vote, and urge members of the Senate to join them in overturning this anti-consumer rule.”
 
The American Bankers Association is the voice of the nation’s $17 trillion banking industry, which is composed of small, regional and large banks that together employ more than 2 million people, safeguard $13 trillion in deposits and extend more than $9 trillion in loans.
 
# # #