WASHINGTON, D.C.— David Hirschmann, president and CEO of the U.S. Chamber of Commerce Center for Capital Markets Competitiveness (CCMC), and Lisa A. Rickard, president of the U.S. Chamber Institute for Legal Reform (ILR) issued the following statement today on the Consumer Financial Protection Bureau’s (CFPB) study of pre-dispute arbitration clauses:
“The CFPB’s study makes one wonder if the Bureau is really trying to protect consumers or is instead trying to protect plaintiffs’ lawyers.
“Arbitration is a simple, inexpensive, and modern system for enabling consumers to obtain fair and fast redress for the vast majority of their grievances. Banning pre-dispute arbitration clauses will deprive consumers of the only realistic means of remedying most injuries, leaving them with lawyer-driven class actions lawsuits that provide millions in legal fees to lawyers, but little or no benefit to consumers.
“The CFPB report’s predetermined conclusions ignore key facts and are the result of an unfair and biased approach.
“In light of its fatal flaws, this study should not be used by the CFPB for any subsequent rule-making.”
Since its inception in 2007, the Center for Capital Markets Competitiveness has led a bipartisan effort to modernize and strengthen the outmoded regulatory systems that have governed our capital markets. The CCMC is committed to working aggressively with the administration, Congress, and global leaders to implement reforms to strengthen the economy, restore investor confidence, and ensure well-functioning capital markets.
ILR seeks to promote civil justice reform through legislative, political, judicial, and educational activities at the national, state, and local levels.
The U.S. Chamber of Commerce is the world’s largest business federation representing the interests of more than 3 million businesses of all sizes, sectors, and regions, as well as state and local chambers and industry associations.