ETA Statement on CFPB Proposed Arbitration Rule

By ETA CEO Jason Oxman

“The CFPB proposal will have a negative impact on Consumers.  As illustrated in CFPB’s own study, arbitration is a simpler, more flexible, faster and more confidential process than taking lawsuits to court. Unlike trials, which must be scheduled into busy court calendars, arbitration hearings can be scheduled more easily and during non-business hours. Moreover, arbitration results in much higher returns for consumers. The CFPB’s data establishes that consumers won 47 cents on the dollar in arbitration cases where they received a recovery, versus minimal payments received by class action participants. Banning mandatory arbitration clauses will deprive consumers of these benefits. We hope the CFPB will use the public comment period to rethink its approach to regulating arbitration in a way that puts consumers first.”

About ETA

The Electronic Transactions Association (ETA) is the global trade association representing more than 500 payments and technology companies. ETA members make commerce possible by processing more than $5 trillion in purchases in the U.S. and deploying payments innovations to merchants and consumers.