July 9, 2014

Industry trade groups urge OMB not to approve CFPB arbitration telephone survey

From: CFPB Monitor/Ballard Spahr

By Alan S. Kaplinsky

Three prominent industry trade groups are urging the Office of Management and Budget (OMB) not to approve the CFPB’s proposal to conduct a national telephone survey of 1,000 credit card holders as part of its study of the use of mandatory arbitration agreements in connection with the offering of consumer financial products and services. 

After releasing its initial proposed survey in June 2013, the CFPB revised the proposed survey in May 2014 based on the comments it received on the initial survey.  In its Federal Register notice announcing the revised survey, the CFPB indicated that the survey was intended to explore: (a) the role of dispute resolution provisions in consumer card acquisition decisions, and (b) consumers’ default assumptions (meaning consumers’ awareness, understanding, or knowledge without supplementation from external sources) regarding their dispute resolution rights vis-à-vis their credit card issuers, including their awareness of their ability, where applicable, to opt-out of mandatory pre-dispute arbitration agreements. 

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