CFPB Taking Steps To Ban Class Action Waivers

On October 7, the CFPB announced at a field hearing in Denver, Colorado, that it plans to propose rules via its rule-making authority that would prohibit financial services companies from including class action waivers in arbitration clauses with consumers.

The CFPB previously published an outline of proposals regarding this effort and sought feedback from stakeholders. Specifically, this class action waiver ban would apply to most consumer financial products, such as credit cards, checking and other deposit accounts, prepaid cards, some auto loans, auto title loans, specialty finance loans and payday loans, installment loans, and private student loans. The CFPB generally has enforcement authority over these products and services.