Tag Archives: Arbitration Clauses

Sen. Elizabeth Warren and Rep. Hank Johnson are leading a coalition of 90 lawmakers in requesting increased protections by the Bureau on forced arbitration for financial products and services.

The comment period closed for the CFPB's arbitration proposal, and now groups are voicing their opposition for the proposed rule.

Subcommittee Chairman Randy Neugebauer tweeted, "My friends on the other side of the aisle asked a trial lawyer to come speak in favor of the CFPB's Arbitration Rule. I rest my case."

The CFPB's controversial rule proposal to ban arbitration clauses in business contracts has generated quite a buzz. This week, a House subcommittee will hold a hearing on whether the proposed rule is in the public interest and whether it will really protect consumers.

The Consumer Financial Protection Bureau proposed a rule on Tuesday regarding businesses' use of arbitration clauses in contracts. What does the rule include?

The CFPB has proposed a ban on the use of arbitration clauses that prevent consumers from bringing class action suits against businesses. A coalition of more than 160 groups, including AFL-CIO and NAACP, wants the Bureau to take the rule even further, however.

The director said that some of the broader ramifications surrounding arbitration clauses "are surprising and even breathtaking in their scope."

The Consumer Financial Protection Bureau (CFPB) announced on Wednesday it is considering proposing rules that will make consumer financial companies more accountable to the consumers they serve. The Bureau is considering a proposal that would prevent consumer financial companies from using "free pass" arbitration clauses that would prevent consumers from bringing class action lawsuits to obtain relief.