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:
- Arbitration provisions still may be included in consumer-facing
product or service agreements such as those mentioned above, but
such agreements must include the following provision: "We
agree that neither we nor anyone else will rely on this agreement
to stop you from being part of a class action case in court. You
may file a class action in court or you may be a member of a class
action filed by someone else."
