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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CFPB Likely To Require Access To Class Actions And Data On Individual Arbitrations
By Liz Kramer on
Posted in Class Arbitration, Litigation vs. Arbitration
Richard Cordray, Director of the Consumer Financial Protection Bureau, has positioned himself as the Boogeyman that financial companies fear this Halloween season. Earlier this month, the CFPB outlined the proposals under consideration for regulating arbitration in the consumer financial industry. The proposals address the availability of class actions — as was widely expected — but…