The CFPB today issued a consumer-friendly rule that is likely to significantly curtail the use of arbitration in consumer financial agreements. That rule has two major components. First, it prohibits institutions from relying on arbitration clauses to avoid class actions. And second, it mandates the submission of redacted data on consumer financial arbitrations that will
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Hold Onto Your Hats: CFPB Proposed Rules Will Lead to Lots of Class Action Litigation
By Liz Kramer on
Posted in Class Arbitration, Year In Review
Today the Consumer Financial Protection Bureau proposed the rules that it previewed last fall, following up on its Arbitration Study. Those rules would essentially ban class action waivers from consumer financial agreements, as well as requiring arbitral institutions to provide data on consumer financial disputes to the CFPB. (As an aside, the proposal is…