Last week, the Consumer Financial Protection Bureau (CFPB)
released its 728-page report on the use of arbitration
clauses in consumer financial products and services contracts. The
findings in the report come from a three-year study, which CFPB
Director Richard Cordray called "the most comprehensive
empirical study of consumer financial arbitration ever
conducted." In addition to the roughly 1,800 consumer finance
arbitration disputes filed between 2010 and 2012, the CFPB reviewed
consumer finance cases filed in federal court during the same
period as well as 562 consumer finance class-action suits filed in
federal and state courts.
While the bureau described the study as "empirical, not
evaluative," the study is expected to lead to proposed
rulemaking from the CFPB regarding arbitration clauses and, in
particular, those prohibiting class-action suits. In prepared
remarks given in conjunction with the study's release, Mr.
Cordray noted some problematic features of
