Stroock Special Bulletin
"CFPB Strongly Signals its Intent to Ban or Severely Limit Class Action Waivers and Pre-Dispute Arbitration Agreements"
On March 10, 2015, in a 700-page report and at a public field hearing, the Consumer Financial Protection Bureau made clear its intention to ban or severely limit class action waivers and pre-dispute arbitration agreements.
The Dodd-Frank Act requires CFPB to report to Congress on the effects of arbitration clauses in consumer financial agreements, and the statute empowers CFPB to prohibit or limit such clauses on a going-forward basis, following a formal rulemaking proceeding. These actions indicate that CFPB intends to accelerate its pace toward issuing a formal rule.