ABA Banking Journal
No Result
View All Result
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive
SUBSCRIBE
ABA Banking Journal
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive
No Result
View All Result
No Result
View All Result
Home Compliance and Risk

Arbitration Rule to Raise Cost of Credit 25 Percent, OCC Study Finds

September 28, 2017
Reading Time: 1 min read

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, Acting Comptroller Keith Noreika said today at a fintech conference hosted by the Federal Reserve Bank of Philadelphia.

“What we found is that there could be as high as a three-and-a-half percent annual percentage rate increase for consumers who would be subject to the rule,” Noreika said. “That’s a 25 percent increase in credit costs for people who may live week to week. There’s a real, tangible economic effect that it may have on consumers.”

He said the OCC conducted the study because it wanted to review the effects of the CFPB’s rule — which virtually bans mandatory arbitration agreements in contracts for financial products and services — on banks and the customers they serve. “What originally caught my eye…was the potential impact that may have on small institutions…that really may face a massive litigation exposure,” he said.

The American Bankers Association is backing efforts in Congress to overturn the arbitration rule. A Congressional Review Act resolution passed the House this summer and is awaiting action in the Senate.

Tags: ArbitrationClass actionsConsumer lending
ShareTweetPin

Related Posts

Treasury: State bank laws may interfere with federal AML, sanctions requirements

FDIC surveys banks on anti-money laundering compliance costs

Compliance and Risk
September 12, 2025

The FDIC has launched a survey on the costs of compliance with anti-money laundering and countering the financing of terrorism regulations, according to a notice published in the Federal Register.

Consumer Sentiment declined in April

Preliminary: Consumer sentiment fell 2.8 points in September

Economy
September 12, 2025

Consumer sentiment edged down 2.8 points in September to 55.4, down 14.7 points from one year ago, according to preliminary results of the University of Michigan Surveys of Consumers.

Basel committee proposes adjustments to standard on interest rate risk in the banking book

ABA DataBank: Rate forecasts solidify following August CPI

Economy
September 12, 2025

Market consensus on the probability of a 25 basis point cut in the target fed funds rate strengthened following the recent inflation report.

BAFT releases report on best practices, guidance for ISO 20022 migration

ABA op-ed: Don’t fall for fintech, retailer spin on consumer financial information sharing

Compliance and Risk
September 12, 2025

Financial technology firms and mega-retailers are trying to trick the public about access to their own consumer financial information so the companies can profit from charging for access to that same data, ABA’s Ryan Miller wrote in a...

In defense of clarity on preemption

Policy
September 12, 2025

The OCC’s new leadership is right to uphold our robust tradition of national bank preemption.

Podcast: AI, third-party risk and the future of partner banking

Podcast: AI, third-party risk and the future of partner banking

ABA Banking Journal Podcast
September 11, 2025

From artificial intelligence to other new technologies to regulatory expectations, how is the partner bank sector shifting?

NEWSBYTES

FDIC surveys banks on anti-money laundering compliance costs

September 12, 2025

Preliminary: Consumer sentiment fell 2.8 points in September

September 12, 2025

ABA DataBank: Rate forecasts solidify following August CPI

September 12, 2025

SPONSORED CONTENT

The Connectivity Dividend

The Connectivity Dividend

September 1, 2025

Building Trust with Every Transaction

September 1, 2025
10 Essentials of a New Loan Origination System

10 Essentials of a New Loan Origination System

August 29, 2025
Planning Your 2026 Budget? Allocate Resources to Support Growth and Retention Goals

Planning Your 2026 Budget? Allocate Resources to Support Growth and Retention Goals

August 1, 2025

PODCASTS

Podcast: AI, third-party risk and the future of partner banking

September 11, 2025

Demographic trends shaping the U.S. banking outlook

July 30, 2025

Podcast: How institutional banking helps build one regional bank’s strategy

July 24, 2025

American Bankers Association
1333 New Hampshire Ave NW
Washington, DC 20036
1-800-BANKERS (800-226-5377)
www.aba.com
About ABA
Privacy Policy
Contact ABA

ABA Banking Journal
About ABA Banking Journal
Media Kit
Advertising
Subscribe

© 2025 American Bankers Association. All rights reserved.

No Result
View All Result
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive

© 2025 American Bankers Association. All rights reserved.