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.”