CFPB Rule Blocks Class Action Bans in Arbitration Clauses

July 11, 2017 at 9:48 am

Written by: Jennifer Salisbury

Yesterday, the Consumer Financial Protection Bureau (CFPB) issued a final rule blocking certain financial institutions – including banks, credit card companies, student lenders, payday lenders, debt collectors, and credit reporting companies – from including class action bans in arbitration clauses. The rule does not take effect immediately, and applies only to contracts signed after March 2018.  Arbitration clauses are not banned altogether, but companies will be required to submit certain information about individual arbitration cases to the CFPB, which will be published on the CFPB’s website beginning in July 2019.  For more information, click here to view the Law360 article discussing the rule.

Entry filed under: Uncategorized.

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