October 24, 2017

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FSR: Congress Acts to Protect Consumers, Preserve Arbitration

Today the Senate acted to preserve consumer access to low-cost arbitration and enable Americans to resolve disputes in a timely manner. We applaud Congress for exercising its oversight authority on this important consumer protection issue.

FSR: Congress Acts to Protect Consumers, Preserve Arbitration
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FSR: Congress Acts to Protect Consumers, Preserve Arbitration

 

WASHINGTON – A vote today in the U.S. Senate will help ensure customers, rather than trial lawyers, can receive larger and quicker financial compensation from disputes with companies.

“Today the Senate acted to preserve consumer access to low-cost arbitration and enable Americans to resolve disputes in a timely manner,” said FSR’s Head of Government Affairs Anthony Cimino. “We applaud Congress for exercising its oversight authority on this important consumer protection issue.”

According to the CFPB’s own study, consumers obtained an average of $5,389 through arbitration resolution versus $32.35 in complex class action lawsuits requiring legal representation. The study also found consumers using arbitration resolved disputes 12 times faster than litigation.

The resolution passed in the U.S. Senate under the Congressional Review Act (CRA) will repeal the CFPB’s rule restricting the use of arbitration agreements and follows a July vote in the House and enables Congress to use its oversight authority to overturn the Rule.

 

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About The Author

The Financial Services Roundtable represents the largest integrated financial services companies providing banking, insurance, payment and investment products and services to the American consumer. Member companies participate through the Chief Executive Officer and other senior executives nominated by the CEO. FSR member companies provide fuel for America’s economic engine, accounting for $92.7 trillion in managed assets, $1.2 trillion in revenue, and 2.3 million jobs.

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