AFSA Comments on Anti-Consumer Arbitration Provisions
Last week, the American Financial Services Association, joined by 200 other trade associations, submitted a comment letter to Members of Congress opposing anti-arbitration clauses and provisions that have been recently introduced.
AFSA, along with several organizations publishing empirical studies, has long argued that arbitration is an efficient and cost-effective option for dispute resolution with consumers. By contrast, class action lawsuits often take a long time and line the pockets of trial lawyers instead of providing meaningful restitution for consumers.
Federal law has protected arbitration clauses, helping consumers and businesses resolve issues for nearly a century. In fact, the Consumer Financial Protection Bureau’s own 2015 study found that arbitration cost less, was faster than the courts and resulted in higher monetary outcomes for individuals. The study found the average amount received by consumers through arbitration is $5,389. The average received by consumers through class-action lawsuits is just $32.
August 2nd, 2023
