Alan Kaplinsky, a partner at Ballard Spahr, was one of six panelists at the October 7, 2015, public field hearing in Denver to discuss arbitration. Mr. Kaplinsky was highly critical of the CFPB’s position, direction, and opening remarks by CFPB Director Richard Cordray.

In citing the CFPB arbitration study mentioned by Director Cordray and other panelists, Mr. Kaplinsky noted that the average dollar recovery for consumers in the class action cases highlighted in that study was $32.35. He also highlighted that class action settlements benefit less than 4 percent of consumers and that 96 percent of all potential consumer claimants do not benefit—evidence that consumers’ interests are not best served by class action litigation if only 4 percent of consumers ever receive any benefit.

Mr. Kaplinsky also noted that the class action process yields significant income opportunities for all lawyers involved in such cases.

Related Practices

Consumer Financial Services
Consumer Financial Protection Bureau
Bank Regulation and Supervision