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!