CFPB Bars Bans On Class Actions In Consumer Financial Products Arbitration Agreements

Administration efforts to stop new regulations promulgated under the Obama Administration failed to stop a major new Consumer Financial Protection Board regulations limiting arbitration clauses. It also requires disclosures about consumer financial products arbitrations to be shared with the CFPB.

Today the Consumer Financial Protection Board issued its final rule on arbitration agreements. Here’s the full 775-page document (the text of the regulation itself begins at p.747). 

From the summary: 

First, the final rule prohibits covered providers of certain consumer financial products and services from using an agreement with a consumer that provides for arbitration of any future dispute between the parties to bar the consumer from filing or participating in a class action concerning the covered consumer financial product or service. Second, the final rule requires covered providers that are involved in an arbitration pursuant to a pre-dispute arbitration agreement to submit specified arbitral records to the Bureau and also to submit specified court records. The Bureau is also adopting official interpretations to the regulation.

From the Civil Procedure and Federal Courts blog on Monday, July 10, 2017.