Washington, D.C. (July 24, 2017)
—Independent Community Bankers of America® (ICBA) today sent letters
to Congress in support of Sen. Mike Crapo’s (R-Idaho) and Rep. Keith Rothfus’s (R-Pa.) Congressional Review Act resolutions (S.J. Res. 47) and (H.J. Res. 111), respectively, which seek to reverse the Consumer Financial Protection Bureau’s (CFPB) final ruling restricting the use of consumer arbitration agreements.
“If the CFPB rule stands, exposure to class action litigation expenses, coupled with a rising tide of regulatory compliance costs, will surely contribute to the consolidation trend, which is reshaping the banking industry to the detriment of consumer choice,” ICBA’s President and CEO Camden R. Fine wrote. “With your support in passing this resolution, the CFPB’s ill-conceived and counterproductive rule can be reversed.”
Community banks invest heavily in resolving customer complaints amicably and on a timely basis. However, when a dispute cannot be resolved, a speedy and fair resolution is the best outcome for all parties.
The CFPB’s own report indicates arbitration offers a better process and outcomes for consumers, as opposed to class action suits, which are slower and provide on average little financial recovery to consumers, ICBA noted in an earlier comment letter filed with the bureau.
Arbitration provides an effective check on enterprising trial lawyers and the trend toward frivolous class action litigation, which serves the interest of trial lawyers at the expense of community banks and consumers.
The Independent Community Bankers of America®, the nation’s voice for more than 5,800 community banks of all sizes and charter types, is dedicated exclusively to representing the interests of the community banking industry and its membership through effective advocacy, best-in-class education and high-quality products and services. For more information, visit ICBA’s website at www.icba.org.