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CFPB Study Says American Arbitration Association’s Revised Rules Benefit Consumers

A recent study submitted to the Consumer Financial Protection Bureau revealed that the AAA revised rules are already benefiting consumers.

The study showed that the new rules:

  • Make the litigation cheaper for the consumer
  • That arbitration awards were, on average, 166 times larger than awards obtained in court.
  • Arbitration is faster than litigation in court.

The Report, addressed directly to CFPB Director Richard Cordray confirms what industry insiders had expected.  Cordray and Senator Elizabeth Warren can be credited in large part for these changes.  Cordray’s tough stance on Consumer Rights and his contentious relationship with President Trump make his tenure as Director of the CFPB tenuous at best.  When Cordray refused to support the President’s call for the repeal of Dodd Frank it was said that the President wanted Cordray terminated.  The President was thereafter advised that forcing Cordray out would provoke Democratic attacks and the President relented, for now.

If Cordray were to lose his position the President would no doubt insert a creditor-friendly replacement.  The rules that shift the balance in arbitration to consumers would shift back to the creditor.  In the interim, the time to act and seek the benefits of consumer arbitration is now!

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MARS DISCLAIMER If you are a homeowner/borrower and you have retained CASA to represent you in a matter related to your mortgage CASA may represent you in your arbitration with respect to claims against your creditor for violations of State and Federal Law. If, however, you wish to apply for loan modification or any other type of loss mitigation as a part of this representation an attorney that is licensed in your home state, or the state in which your property is located, must be assigned to your file. You will be required to sign a Mortgage Assistance Relief Services Addendum for the provision of these services. While there will be additional fees for these services, CASA will not bill you for these services unless and until you and your Servicer reach a resolution that is acceptable to you.