Thursday, October 8, 2015

Plaintiffs' Lawyer Protection Bureau

Andy Pincus, partner at Mayer Brown called out the CFPB's proposed framework for arbitration terms for putting the interests of trial lawyers ahead of consumers.  His essay appears is on the U.S.Chamber of Commerce page.

He notes that based on the CFPB's own study, 251 settlements with 34 million class members yielded a total of $1.1 billion from defendants, for an average payment of about $32 per consumer.  Plaintiffs' lawyers in these cases yielded about $1 million per case in fees.  He notes with understatement:  "No wonder these lawyers are so eager to be able to bring class actions."  He also takes the CFPB to task for offloading to plaintiffs' lawyers their responsibility to protect consumers through rule making and enforcement actions.  

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