ABA and two other trade groups on Friday urged the CFPB in a comment letter to study consumer arbitration as it occurs to people in their daily lives. They were commenting on the CFPB’s request for information on the scope, methods and data sources for conducting its Dodd-Frank Act-mandated study of pre-dispute arbitration agreements.
Instead of limiting itself to the questions posed in its formal request, the CFPB “should examine and measure the benefits and costs to consumers, businesses and society … of individual arbitration as compared with both individual litigation and class action litigation,” the letter stated.
The trade groups noted that while the CFPB’s information request does not specifically mention class actions, they cannot be divorced from an examination of consumer arbitration.
The CFPB also “should take into account the many types of informal dispute resolution processes, including those error and dispute resolution procedures provided by federal and state law, those maintained internally by businesses and those offered by regulatory agencies … and private organizations such as the Better Business Bureau,” they said.
Read the full letter.