The Consumer Financial Protection Bureau (“CFPB”) on July 10 issued its long-anticipated arbitration rule, with few surprises. Recall that Dodd-Frank section 1028 directs the CFPB to study the use of PDAAs in contracts for consumer financial products and services and later report to Congress, and to ban, limit or impose conditions on their use if […]

The Consumer Financial Protection Bureau’s (“CFPB”) proposed regulation governing predispute arbitration agreements in contracts involving financial products and services – if not the Bureau itself – may face rough sledding in 2017, if recent activity in Congress is any indication. As we have reported many times, the Consumer Financial Protection Bureau (“CFPB”) on May 5th […]

The Centers for Medicare and Medicaid Services has issued final regulations banning nursing homes and long-term care facilities receiving federal funds from using mandatory predispute arbitration agreements. We reported in SAA 2015-37 that, about a year ago, a group of 34 Democratic Senators, led by Senator Al Franken (D-MN), wrote to the Centers for Medicare […]

The comment period for the Consumer Financial Protection Bureau’s (“CFPB”) proposed rule banning class action waivers closed on August 22nd with a massive number of comments. As we have reported many times, the CFPB on May 5th released a proposed rule that would: 1) ban class action waivers (“CAWs”) in predispute arbitration agreements (“PDAAs”) in […]

In a unanimous decision, the Seventh Circuit holds that an arbitration clause in an employment agreement containing a class action waiver violated the National Labor Relations Act (“NLRA”) and was unenforceable. Just a week later, a unanimous Eighth Circuit says enforcing the PDAA is permitted by the NLRA, but the PDAA’s chilling effect on filing […]

As we reported in SAA 2016-18, the House Financial Services Committee’s Subcommittee on Financial Institutions and Consumer Credit held a hearing May 18th to investigate the CFPB’s arbitration rulemaking process. Recall that on May 5th, the Consumer Financial Protection Bureau (“CFPB”) released a proposed rule that would ban class action waivers (“CAWs”) in predispute arbitration […]

As we predicted in SAA 2016-15, the Consumer Financial Protection Bureau (“CFPB”) used a “field hearing” on arbitration on May 5th in Albuquerque to release news that it will be moving ahead with rulemaking that will ban class action waivers in consumer financial arbitration clauses. The field hearing announcement stated: “The hearing would feature remarks […]

By George H. Friedman* [The author thanks the Securities Arbitration Commentator for letting him borrow liberally from its Securities Arbitration Alert] Much has been written in recent years about the likely demise of mandatory predispute arbitration agreements (“PDAAs”) in the consumer financial context. I should know, I’m one of the authors. But recent events have […]

By George H. Friedman* For most of my fourteen years as FINRA’s Director of Arbitration, I perceived myself to be tilting at windmills trying to make the case that FINRA’s arbitration program was the fairest consumer arbitration program is existence. I won’t bore readers by repeating here the many facts backing up my assertion. They […]

Over the past several months, we’ve reported on the Consumer Financial Protection Bureau’s (“CFPB”) review of mandatory predispute arbitration agreements “PDAAs”). In light of recent activity, we decided to offer this primer on the subject. CFPB’s authority under Dodd-Frank: To review, Dodd-Frank section 1414 bans outright PDAAs in residential mortgage contracts and section 1028 directs the […]