Time To Comment: The Proposed Arbitration Rule Has Arrived

Surprising no one, the CFPB has announced a proposed rule that would effectively ban mandatory arbitration clauses in covered consumer financial services contracts. The rule continues to ignore the legislative and judicial findings embodied in the Federal Arbitration Act and the cases interpreting it, the well-documented abuses associated with class action litigation, and the methodological and analytical flaws in the Bureau's arbitration study. Stay tuned for a MoFo client alert with all the details. In the meantime, here's a quick summary. You can also catch up by reading our alert on the CFPB's earlier announcement about the rulemaking and listen to Director Cordray's speech on the proposed rule.