The CFPB asked Alan Kaplinsky to present the industry perspective at a field hearing on its arbitration report to Congress in Newark, New Jersey, on March 10, 2015. The event featured opening remarks from Director Richard Cordray, as well as commentary from consumer groups, industry representatives and members of the public. According to Director Cordray, the report was based on the CFPB’s review of:

  • 852 consumer finance agreements
  • 1800 consumer finance arbitration disputes
  • 3500 individual consumer finance cases that were filed in federal court
  • 562 consumer class action lawsuits that were filed in federal and “selected” state courts
  • 30,000 small claims filings
  • 400 consumer finance class action settlements in federal courts over a five-year period

Additionally, the CFPB conducted a national telephone survey of more than 1,000 credit card holders to “learn about their knowledge and understanding of arbitration and other dispute resolution mechanisms.” Among other things, the CFPB found that only 2 percent of consumers surveyed said that they would consider bringing formal legal proceedings against their credit card issuer if they were unable to retain relief through the company’s own channels. Three out four of the consumers surveyed did not know whether they were subject to an arbitration clause.

Click here to view the video. Mr. Kaplinsky's remarks begin at minutes 23.37 (ending at 32.46); 54.32 (ending at 57.21) and at 1.10:54 (ending at 1.12:36).

More information:
http://www.cfpbmonitor.com/2015/03/13/cfpb-holds-field-hearing-on-arbitration-report/  
http://www.cfpbmonitor.com/2015/03/09/alan-kaplinsky-to-present-industry-perspective-at-cfpb-arbitration-field-hearing/  

Related Practices

Consumer Financial Protection Bureau
Consumer Financial Services