Financial Industry Alert | July.24.2017
The CFPB, after entertaining numerous comments, issued its final arbitration rule on Monday, July 10. The rule prohibits specified providers of certain consumer financial products and services (loans, credit cards, and other products and services) from using an agreement with a consumer that provides for mandatory arbitration of disputes in lieu of filing or participating in a class action. (CFPB regulations already prohibit using pre-dispute agreements in most types of consumer mortgages.)
Key takeaways of the rule:
We will be back with further updates as to the implications of the rule for our clients as well any future developments in Congress or otherwise.