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Saturday, May 7, 2016

Ban on Class Waivers in Consumer Finance Arbitration Coming Soon?

The Consumer Financial Protection Bureau has proposed a rule to ban class waivers in arbitration agreements.

As the CFPB summarizes:

First, the proposed rule would prohibit 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 with respect to the covered consumer financial product or service. Second, the proposal would require a covered provider that is involved in an arbitration pursuant to a pre-dispute arbitration agreement to submit specified arbitral records to the Bureau.

Hat tip to Opal Nicole Smith