On Monday, ABA and two other trade groups urged the Consumer Financial Protection Bureau to change its approach to researching mandatory pre-dispute arbitration agreements for credit cards. The bureau has proposed a telephone survey of 1,000 credit card holders.
The groups said the CFPB’s approach -- although slightly modified since originally suggested last summer -- remains flawed, unlikely to generate useful information and unwarranted by statute. They urged the bureau to use other means -- such as focus groups -- to research the issue, noting that the phone survey’s questions might bias respondents toward preconceived conclusions. ABIA supported the letter ABA sent to the CFPB.
Read the letter.
The ABIA has a task Force of members that work on issues related to the CFPB's regulation of insurance products, including debt protection products. If you are an ABIA member and would like to learn more about ABIA's work with CFPB to educate them about the bank-insurance industry or join our CFPB Task Force, please contact us and visit our website.