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 containing class action waivers to prevent consumers from filing or participating in a class action litigation to resolve disputes with certain consumer financial product and service providers. The proposal would also require that any covered provider involved in an individual arbitration in accordance with a pre-dispute arbitration agreement submit certain records relating to arbitral proceedings to the Bureau.