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ARTICLE · 12 JULY 2017

CFPB Issues Final Rule Banning Class Action Waivers In Financial Services Contracts

Reed Smith
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The public responded with more than 110,000 comments during the comment period that followed.

United StatesFinance and Banking
Ashley Shively
Ashley Shively
Leonard Bernstein
Leonard Bernstein
Robert Jaworski
Robert Jaworski
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The Consumer Financial Protection Bureau (CFPB) finally moved forward today to ban class action waivers in mandatory arbitration clauses found in certain consumer financial services contracts.

In October 2015, the CFPB published its multiyear study on arbitration provisions in consumer financial contracts and an outline of the proposal under consideration. It then convened a Small Business Review Panel to gather feedback. The Bureau also sought comments from stakeholders — the public, consumer groups, and industry —before moving forward with rulemaking. In May 2016, the Bureau issued its proposed rule. The public responded with more than 110,000 comments during the comment period that followed.

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