Banking industry groups are expressing strong opposition to a proposed telephone survey of consumers by the Consumer Financial Protection Bureau on credit card dispute resolution.

Alan S. Kaplinsky, who heads Ballard Spahr’s Consumer Financial Services Group, said the industry is concerned that the survey is the CFPB’s first step toward regulating, or even banning, the use of mandatory arbitration clauses in financial products. Under such clauses, consumers agree to resolve dispute through arbitration instead of through the courts.

“The stakes are very high,” Mr. Kaplinsky said. “Arbitration is a very important way that a lot of banks and other consumer financial services companies deal with dispute resolution.”

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Consumer Financial Services