Reactions to the CFPB’s arbitration rule

On July 10, the CFPB issued its much-anticipated final arbitration rule which prohibits covered entities from including mandatory arbitration clauses in contracts that block class-action litigation. The rule will become effective 60 days after publication in the Federal Register, but will only apply to pre-dispute arbitration agreements for covered products or services entered into on [...]

By | 2017-07-13T13:02:22+00:00 July 13th, 2017|0 Comments

CFPB issues rule prohibiting class action waivers in consumer contracts

Today, the CFPB announced that it has issued its final rule on arbitration. The Bureau also released a short video explaining the arbitration rule. The much-anticipated rule targets providers of certain consumer financial products and services, prohibiting them from using arbitration clauses in customer contracts to block consumers from participating in class action lawsuits. [...]

By | 2017-07-10T15:59:17+00:00 July 10th, 2017|0 Comments

What a recent DC Circuit decision could mean for final CFPB arbitration and payday rules

There have been recent rumors that the CFPB will issue its final arbitration rule by the end of July. According to Ballard Spahr attorney Alan Kaplinsky, “that rumor appears to be gaining traction, with major industry trade group telling its members today that it expects the CFPB to issue a final arbitration rule ‘very [...]

By | 2017-07-07T19:35:55+00:00 July 7th, 2017|0 Comments

Why the CFPB arbitration rule will not take effect

We have discussed how the presidential election and pending PHH case might affect Richard Cordray’s role as CFPB Director. Questions also exist regarding the Bureau’s rulemaking agenda which will undoubtedly be affected by the change of administration and potential changes to CFPB leadership. […]

By | 2016-12-27T00:00:51+00:00 December 27th, 2016|0 Comments

Non-profit files FOIA request for CFPB arbitration rule records

The Cause of Action Institute (“CoA Institute”) has filed an action against the CFPB under the Freedom of Information Act (FOIA) seeking access to records the CFPB has maintained relating to the Bureau’s arbitration study and rulemaking that is designed to prohibit the use of mandatory binding pre-dispute arbitration clauses in financial services contracts. [...]

By | 2016-12-15T00:00:43+00:00 December 15th, 2016|0 Comments

House Subcommittee Questions CFPB’s Arbitration Rule

On Wednesday, May 18, the House Financial Institutions and Consumer Credit Subcommittee held a hearing entitled, “Examining the CFPB’s Proposed Rulemaking on Arbitration: Is it in the Public Interest and for the Protection of Consumers?” The hearing follows the release of Consumer Financial Protection Bureau’s (CFPB) Notice of Proposed Rulemaking covering the use of arbitration [...]

By | 2016-05-20T00:00:45+00:00 May 20th, 2016|0 Comments

CFPB issues proposed arbitration rule

On May 5, 2016, the Consumer Financial Protection Bureau (CFPB) held a field hearing in Albuquerque, New Mexico to announce the release of its proposed rule regarding the use of arbitration agreements in consumer financial services contracts. The proposed rule would prohibit covered providers of certain consumer financial products and services from using arbitration agreements [...]

By | 2016-05-10T00:00:27+00:00 May 10th, 2016|0 Comments