CFPB Director Provides Additional Commentary On Efforts To Address Arbitration Issues

On October 22, Consumer Financial Protection Bureau Director Richard Cordray delivered prepared remarks to the Consumer Advisory Board.  At the meeting, Cordray discussed arbitration and issues relating to non-English or limited English-speaking consumers.   

The issue of arbitration, however, was at the forefront of the discussion.  As we previously reported, the CFPB intends to use its rulemaking authority to address consumer arbitration issues, and presumably to substantially reduce the availability of compelled arbitration.  Cordray emphasized this new approach for the CFPB in his prepared remarks, in which he stated, "Companies use [arbitration clauses] ... to block class action lawsuits, providing themselves with a free pass from being held accountable by their customers in the courts."