Gibson Dunn analyzes the CFPB’s Rulemaking to Curtail Arbitration Agreements Barring Class Actions in Consumer Financial Contracts

On October 7, 2015, the United States Consumer Financial Protection Bureau announced that it is “launch[ing] a rulemaking process” that is intended to impede the use of “pre-dispute arbitration agreements for consumer financial products and services.”[1] The proposal currently under consideration by the Bureau would (1) “prohibit companies from blocking group lawsuits through the use of arbitration clauses in their contracts;” and (2) “require companies to send to the Bureau all filings made by or against them in consumer financial arbitration disputes” and any resulting decisions, “which might be made public.”[2]

If the CFPB ultimately adopts the current … Read more