Inside the CFPB - CFPB Proposes Registry of Nonbanks' Contract Terms
January 24, 2023
Inside the CFPB
If enacted, a rule recently proposed by the Consumer Financial Protection Bureau would require nonbanks to register with the bureau if they use specific terms and conditions that attempt to waive consumers’ legal protections, limit how consumers enforce their rights, restrict consumers’ ability to file complaints, force arbitration or limit the company’s liability to a consumer. Information would be gathered annually and posted in a registry that will be open to the public.
Allen Denson, a former senior attorney at the Office of the Comptroller of the Currency and partner at Stroock, says the CFPB currently doesn’t have a mechanism to prohibit so-called “take it or leave it terms,” surmising this could be another attempt by the bureau to ban forced arbitration.
Read the full article here.
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January 24, 2023
Inside the CFPB
If enacted, a rule recently proposed by the Consumer Financial Protection Bureau would require nonbanks to register with the bureau if they use specific terms and conditions that attempt to waive consumers’ legal protections, limit how consumers enforce their rights, restrict consumers’ ability to file complaints, force arbitration or limit the company’s liability to a consumer. Information would be gathered annually and posted in a registry that will be open to the public.
Allen Denson, a former senior attorney at the Office of the Comptroller of the Currency and partner at Stroock, says the CFPB currently doesn’t have a mechanism to prohibit so-called “take it or leave it terms,” surmising this could be another attempt by the bureau to ban forced arbitration.
Read the full article here.
Related Files & Links
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