CFPB to Discuss Arbitration at Field Hearing Next Month
The Consumer Financial Protection Bureau will be holding a field hearing on May 5 in Albuquerque, N.M., to discuss arbitration. CFPB Director Richard Cordray will issue remarks at the hearing
WASHINGTON, D.C. — The Consumer Financial Protection Bureau will be holding a field hearing on May 5 in Albuquerque, N.M., to discuss arbitration. CFPB Director Richard Cordray will issue remarks at the hearing. Consumer groups, industry representatives and members of the public will also be in attendance to provide their testimonies.
The American Financial Services Association said it expects the CFPB to address its proposed rule to ban the use of class action waivers in consumer credit agreements at the field hearing. Last year, the CFPB released a study on arbitration that favored class action lawsuits over arbitration.
In the study, the CFPB claimed that arbitration more often harmed consumers. However, according to the AFSA, a review of the study’s results found that consumers received no remuneration in about 60% of class action lawsuits studied by the CFPB.
In the 15% of cases where consumers received monetary compensation through class action lawsuits, the average compensation was $32.35 after waiting two years. Through arbitration, the average consumers received was $5,389, according to AFSA.
The hearing will begin at 1 p.m. ET and will be live streamed on the Bureau’s blog.
Originally posted on F&I and Showroom
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