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AFP KEY Vote: YES on S.J.Res. 47 Disapproving of the CFPB’s Arbitration Rule

Oct 24, 2017 by AFP

Dear Senators:

On behalf of more than 3.2 million Americans for Prosperity activists in all 50 states, I urge a YES vote on S.J.Res.47, a Congressional Review Act (CRA) to overturn the Consumer Financial Protection Bureau’s (CFPB) arbitration rule, which bars class action waivers in arbitration agreements.

We urge you to vote YES on S.J.Res.47 disapproving of the CFPB’s Arbitration Rule. Americans for Prosperity will include this vote in our congressional scorecard.

The Consumer Financial Protection Bureau’s rule would ban mandatory arbitration clauses for everyday financial products, including credit cards and bank accounts, forcing consumers to pick up the tab should harm arise. This removes customer choice, overburdens the court system, and forces consumers to pay more to solve their disputes. Banning arbitration clauses would benefit class action lawyers, not consumers.

According to the CFPB’s own study, consumers on average won over $5,000 when using arbitration versus only $32 returned to plaintiffs after using class-action litigation. The study also found that consumers who used arbitration usually received their awards sooner, averaging around two months—compared to class-action litigation that can take up to two years.

Additionally, class-action lawsuits provide a financial bonus to lawyers rather than consumers.  In fact, the Treasury Department found that the arbitration ban would generate more than 3,000 additional class action lawsuits in the next five years resulting in $500 million in additional legal defense fees and $330 million in payments to plaintiffs’ lawyers. AFP supports using the CRA to overturn this misguided rule that will harm the consumers it was intending to help.

We urge you to vote YES on S.J.Res.47 disapproving of the CFPB’s Arbitration Rule. Americans for Prosperity will include this vote in our congressional scorecard.

Visit our scorecard online: afpscorecard.org

Sincerely,

Chrissy Harbin
Vice President of External Affairs
Americans for Prosperity