On the recordJuly 25, 2017
I thank the gentleman for yielding to me. Mr. Speaker, Ronald Reagan had a unique gift of communicating in a way that reflected the ideas and the thoughts of the American people. He also understood that out-of-control government bureaucracy had a well-deserved reputation of working in its own best interest, not in the best interest of the American people. President Reagan best defined this mistrust of government when he stated: ``The most terrifying words in the English language are: I'm from the government and I'm here to help.'' The skepticism Americans have of their too-big-to-be-useful government has only increased since Reagan spoke those words. And it is rules and regulations, such as the one we are discussing here today, that fosters the distrust Americans have of their government. The CFPB's decision to ban arbitration with preference to class action lawsuits will cause harm to both consumers and businesses. Arbitration has proven to be an effective tool that benefits both parties in a dispute, and has shown to be more favorable to consumers than traditional litigation in the courts. The average compensation, as you have heard, to consumers when using arbitration is $5,400. In contrast, the average settlement for consumers in a class action lawsuit is $32. Not only is arbitration more financially beneficial to consumers, it is less costly and less time-consuming than fighting through the courts.…
