Today, the American Financial Services Association (AFSA) submitted a letter to the top ranking Democratic and Republican leaders on the House Judiciary Committee in opposition to legislation banning pre-dispute arbitration for servicemembers and veterans. While the bill is titled the Justice for Servicemembers Act (H.R. 2196), it would actually limit servicemembers ability to pursue justice.
AFSA strongly supports the use of arbitration as a timely, low-cost dispute resolution option for servicemembers and everyone alike. In the letter, AFSA noted that the Consumer Financial Protection Bureau’s own study on arbitration in 2015 found that:
- Arbitration is cheaper. Consumers paid an average of $206 in total fees in arbitration cases reviewed by the Bureau, compared to the several thousand dollars consumers face in attorney fees in civil court.
- Arbitration is quick. Telephone arbitrations are generally resolved within five months while in-person arbitration is generally settled within seven. Class-action settlements, on average, do not receive final court approval for 690 days, or more than two years.
- Arbitration results in higher monetary relief. The average amount received by consumers through arbitration is $5,389. The average received by consumers through class-action lawsuits is $32.
The last bullet is the most important here. The big winners of class-action lawsuits are plaintiff’s attorneys who, on average, receive millions of dollars per settled case. Consumers receive just $32.
AFSA Letter: Banning Arbitration is Bad for Consumers
Apr 12, 2021
Today, the American Financial Services Association (AFSA) submitted a letter to the top ranking Democratic and Republican leaders on the House Judiciary Committee in opposition to legislation banning pre-dispute arbitration for servicemembers… Read the rest
TODAY @ 3p ET | Inaugural Women’s Forum Mentoring Event
Apr 08, 2021
Join us on Thursday, April 8, 2021 at 3:00 p.m. ET (2:00 p.m. CT / 1:00 p.m. MT / 12:00 p.m. PT) for the Inaugural Women’s Forum Mentoring Event!
Everyone is welcome to join us with THIS LINK.… Read the rest
The WSJ Did Not Try to Get it Right….We Set the Record Straight
Apr 07, 2021
A news article published this week in The Wall Street Journal claims that U.S. consumers in the subprime credit tier are beginning to fall behind on their auto loans. While the article presents data, it doesn’t explain the … Read the rest
Supreme Court Sides With AFSA, Trades in TCPA Case
Apr 06, 2021
In a much-anticipated ruling, the U.S. Supreme Court unanimously narrowed the scope of the Telephone Consumer Protection Act (TCPA). AFSA and other trade associations submitted an amicus brief urging the Supreme Court to take a more common-sense… Read the rest
LISTEN | Dr. Carly Urban & Rhonda Ashburn on the Success of MoneySkill
Apr 06, 2021
In this episode of the AFSA Extra Credit Podcast, we’re joined by Dr. Carly Urban and AFSAEF Executive Director to talk about a new study that found that students using the MoneySKILL program increased their financial knowledge… Read the rest
Fair Lending, Sexual Orientation & Gender Identity: The CFPB ECOA Rule
Apr 05, 2021
The Consumer Financial Protection Bureau has issued an interpretive rule clarifying that prohibitions on sex discrimination in the Equal Credit Opportunity Act (ECOA) include discrimination relating to sexual orientation and gender… Read the rest
New Study Finds MoneySKILL Leads to 60% Increase in Financial Knowledge
Apr 05, 2021
New research released today by the American Financial Services Association Education Foundation (AFSA Education Foundation) reveals that MoneySKILL — a free financial education program primarily for middle school through college … Read the rest
AFSA Officially Launches D&I Working Group
Apr 02, 2021
AFSA is pleased to announce the official formation of our Diversity and Inclusion Working Group. Prabir Chakrabarty with Mariner Finance is serving as the Chair and Kristen Miller with Global Lending Services is the Vice Chair.
All AFSA… Read the rest
Premier Partner Highlight: Fortegra
Apr 01, 2021
Premier Partners provide the American Financial Services Association with significant support to ensure the success of not only the association, but the entire consumer-finance industry. We asked the Fortegra team, AFSA’s April 2021… Read the rest
National Association of Loan Sharks Endorses State Credit Rate Caps
Apr 01, 2021
When it comes to federal or state policymakers imposing cruel and unfair interest rate caps on consumer credit loans, it’s no joke. Consumers – particularly those most in need of small dollar loans – are harmed. They are… Read the rest