Hearing, Report May Forecast CFPB Rulemaking On Arbitration Provisions

Section 1028 of the Dodd-Frank Wall Street Reform and Consumer Protection Act authorizes the Consumer Financial Protection Bureau (CFPB) to limit or even prohibit the use of arbitration provisions that govern future disputes between a consumer and a financial services/products provider. This issue is the focus of a CFPB field hearing scheduled for 11 a.m., March 10, 2015. Along with remarks from Agency Director Richard Cordray, the hearing will feature testimony from consumer protection groups, trade associations and the general public. The hearing will stream live from the CFPB's website.

In conjunction with the field hearing, the CFPB likely will release a long-awaited, detailed report on this topic. That report should conclude a three-year study of the issue, which the CFPB performed under Section 1028. The CFPB released preliminary findings of its study in December 2013. As part of that release, the CFPB found that larger banks are more likely to include