In a statement for the record of a Senate Banking Committee hearing today, the American Bankers Association said it will continue to oppose legislative efforts to limit the use of arbitration clauses in private contracts, including S. 505, the Forced Arbitration Injustice Repeal Act that lawmakers are currently considering.
The American Bankers Association this week joined a group of other trade associations and companies in a letter to the American Law Institute Council opposing a proposed restatement of the law for consumer contracts.
In recent years, high-profile class action settlements have been criticized for delivering little to no monetary relief to plaintiffs, instead, providing coupons, injunctive relief or “cy pres” relief in which the defendant makes charitable donations, while making large fee awards to attorneys.
It’s a big news week on the latest episode of the ABA Newsbytes Podcast. Co-hosts Evan Sparks and Shaun Kern discuss the appointment of Jay Powell as Federal Reserve chairman and the final repeal of the arbitration rule. FirstBank’s Jim Reuter is the interview guest.
President Trump this afternoon signed the Congressional Review Act resolution invalidating the Consumer Financial Protection Bureau’s final rule that had effectively banned the use of mandatory arbitration for consumer financial products.
Acting Comptroller of the Currency Keith Noreika today commended Senate lawmakers for stopping the Consumer Financial Protection Bureau’s controversial arbitration rule.
The Senate tonight voted to overturn the Consumer Financial Protection Bureau’s controversial final rule on arbitration, exercising its authority under the Congressional Review Act to reject new federal regulations.
The Consumer Financial Protection Bureau’s rule virtually prohibiting mandatory arbitration for financial products will impose significant costs on consumers and businesses and enrich plaintiffs’ lawyers while delivering little tangible relief to consumers, the Treasury Department said today in a new report.
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.
The Consumer Financial Protection Bureau on Friday released a small entity compliance guide on the bureau’s final rule drastically constricting the use of mandatory arbitration agreements in consumer financial contracts.