Date: August 22, 2016
Issue: Consumer Financial Protection Bureau
To: Consumer Financial Protection Bureau
Filing Type: Regulatory
Description: Instead of proceeding with the proposed Arbitration Rule, the CFPB should re-open its arbitration study process, consider ways to improve its data collection and analysis, and then, in the sunlight, hold a public discussion on whether a rulemaking is needed. If a transparent study process identifies ways in which arbitration could be improved for the benefit of consumers, the Bureau should proceed cooperatively with stakeholders to improve arbitration. But the Bureau should abandon its present proposal to double down on our broken class action system. Even if arbitration were in need of improvement, no improvement is achieved by putting consumer welfare in the hands of the class action trial bar.