Economic Policy Institute issues report saying average consumer does better in a class action than in arbitration

Posted on: August 1st, 2017 by Steve Larson

The Economic Policy Institute just released a fact sheet debunking industry claims that consumers recover more money in arbitration than class actions. They re-examined data from the CFPB study and found that the average consumer is ordered to pay their bank or lender $7,725 in arbitration.

Industry lobbyists and some GOP Congress members have suggested that average consumers win $5,389 in arbitration. The Economic Policy Institute says the numbers are clear: average consumers lose in arbitration, and end up on the hook for $7,725 or more. A link to the report is attached, accessed by clicking here.