ACA International Joins Industry Advocacy Against Anti-Arbitration Bills

Letter from several organizations to U.S. House of Representatives outlines benefits of arbitration over litigation and opposition to legislation in the 116th Congress.

5/20/2019 1:30 PM

NewsAdvocacy
ACA International Joins Industry Advocacy Against Anti-Arbitration Bills

ACA International is among several organizations in opposition to the number of anti-arbitration bills proposed in the 116th Congress as described in a letter to the U.S. House of Representatives on May 16, 2019.

“Arbitration has been used to amicably resolve disputes since the enactment of the Federal Arbitration Act in 1925. Unfortunately, there is an organized effort underway to dismantle the arbitration system in favor of bringing claims in the broken class action litigation system,” the letter states. “Arbitration is an efficient, effective, and less expensive means of resolving disputes for parties to a dispute including consumers, employees, servicemembers, and businesses. Multiple empirical studies have concluded that those bringing claims in arbitration do just as well, or in many circumstances, better in arbitration as in court.”

According to a news release, one study released by the U.S. Chamber Institute for Legal Reform, among the organizations signing on to the letter, shows findings on the use of arbitration compared to litigation in employment disputes including:

  • Employees were three times more likely to win in arbitration than in court.
  • Employees on average won twice the amount of money through arbitration ($520,630) than in court ($269,885). 
  • Arbitration disputes were resolved on average faster (569 days) than in litigation (665 days).  
  • Seventy-nine percent of arbitration cases were filed by employees who made less than $100,000.

Read the complete study, Fairer, Faster, Better: An Empirical Assessment of Employment Arbitration, by NDP Analytics.

Some legislation introduced in the 116th Congress seeks to reverse the decision to repeal the Consumer Financial Protection Bureau’s rule concerning arbitration agreements in contracts for consumer financial products.

In November 2017, President Donald Trump signed the legislation repealing the Consumer Financial Protection Bureau’s mandatory arbitration rule about a week after it passed with a narrow Republican majority vote on the Senate floor, ACA International previously reported.

In addition to ACA and the U.S. Chamber Institute for Legal Reform, the letter is signed by the American Financial Services Association, CTIA, Innovative Payments Association, National Association of Mutual Insurance Companies. Professional, Association for Customer Engagement. U.S. Chamber of Commerce and USTelecom.

“Opponents of arbitration exaggerate the alleged unfairness of these agreements. The reality is that arbitration providers and the courts ensure that arbitration provisions will be enforced only if they meet basic guarantees of fairness and due process,” the letter states.

“Despite a lack of evidence showing a systemic problem with arbitration, multiple bills have been introduced and proposed in the 116th Congress that attack the availability of arbitration in numerous contexts such as employment-related, consumer contracts, student loans, discrimination claims, and antitrust disputes, among others. These bills include H.R. 1423, H.R. 327, H.R. 1443, H.R. 2148, and H.R. 1430 as well as various other proposed bills,” according to the letter. “If successful, these legislative efforts would declare unenforceable potentially millions of arbitration provisions that allow for the orderly and economical resolution of disputes.”

Read the complete letter on ACA International’s website.


Follow ACA International on Twitter @ACAIntl and @acacollector, Facebook and request to join our LinkedIn group for news and event updates. ACA International members are welcome to submit news items for possible publication to comm@acainternational.org. Visit our publications page for news submission guidelines and subscriptions to ACA Daily, Collector magazine and Pulse.

Advertising is available for companies wishing to promote their products or services. Be sure to visit the ACA Events Calendar on the Education and Training page to view our listing of upcoming CORE Curriculum and Hot Topic seminars featuring critical educational opportunities for your company.


Subscribe to ACA Daily NEWSROOM

ACA International Joins Industry Advocacy Against Anti-Arbitration Bills

ACA International is among several organizations in opposition to the number of anti-arbitration bills proposed in the 116th Congress as described in a letter to the U.S. House of Representatives on May 16, 2019.

“Arbitration has been used to amicably resolve disputes since the enactment of the Federal Arbitration Act in 1925. Unfortunately, there is an organized effort underway to dismantle the arbitration system in favor of bringing claims in the broken class action litigation system,” the letter states. “Arbitration is an efficient, effective, and less expensive means of resolving disputes for parties to a dispute including consumers, employees, servicemembers, and businesses. Multiple empirical studies have concluded that those bringing claims in arbitration do just as well, or in many circumstances, better in arbitration as in court.”

According to a news release, one study released by the U.S. Chamber Institute for Legal Reform, among the organizations signing on to the letter, shows findings on the use of arbitration compared to litigation in employment disputes including:

  • Employees were three times more likely to win in arbitration than in court.
  • Employees on average won twice the amount of money through arbitration ($520,630) than in court ($269,885). 
  • Arbitration disputes were resolved on average faster (569 days) than in litigation (665 days).  
  • Seventy-nine percent of arbitration cases were filed by employees who made less than $100,000.

Read the complete study, Fairer, Faster, Better: An Empirical Assessment of Employment Arbitration, by NDP Analytics.

Some legislation introduced in the 116th Congress seeks to reverse the decision to repeal the Consumer Financial Protection Bureau’s rule concerning arbitration agreements in contracts for consumer financial products.

In November 2017, President Donald Trump signed the legislation repealing the Consumer Financial Protection Bureau’s mandatory arbitration rule about a week after it passed with a narrow Republican majority vote on the Senate floor, ACA International previously reported.

In addition to ACA and the U.S. Chamber Institute for Legal Reform, the letter is signed by the American Financial Services Association, CTIA, Innovative Payments Association, National Association of Mutual Insurance Companies. Professional, Association for Customer Engagement. U.S. Chamber of Commerce and USTelecom.

“Opponents of arbitration exaggerate the alleged unfairness of these agreements. The reality is that arbitration providers and the courts ensure that arbitration provisions will be enforced only if they meet basic guarantees of fairness and due process,” the letter states.

“Despite a lack of evidence showing a systemic problem with arbitration, multiple bills have been introduced and proposed in the 116th Congress that attack the availability of arbitration in numerous contexts such as employment-related, consumer contracts, student loans, discrimination claims, and antitrust disputes, among others. These bills include H.R. 1423, H.R. 327, H.R. 1443, H.R. 2148, and H.R. 1430 as well as various other proposed bills,” according to the letter. “If successful, these legislative efforts would declare unenforceable potentially millions of arbitration provisions that allow for the orderly and economical resolution of disputes.”

Read the complete letter on ACA International’s website.


Follow ACA International on Twitter @ACAIntl and @acacollector, Facebook and request to join our LinkedIn group for news and event updates. ACA International members are welcome to submit news items for possible publication to comm@acainternational.org. Visit our publications page for news submission guidelines and subscriptions to ACA Daily, Collector magazine and Pulse.

Advertising is available for companies wishing to promote their products or services. Be sure to visit the ACA Events Calendar on the Education and Training page to view our listing of upcoming CORE Curriculum and Hot Topic seminars featuring critical educational opportunities for your company.


Subscribe to ACA Daily NEWSROOM

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