The CFPB has issued a Final Rule regulating arbitration agreements in contracts for certain consumer financial products and services. The Final Rule applies to providers of certain consumer financial products and services in the core markets of lending money, storing money, and moving or exchanging money.
The Final Rule imposes two sets of limitations on the use of pre-dispute arbitration agreements by covered providers of such products and services. First, the Final Rule prohibits covered providers from using a pre-dispute arbitration agreement to bar a consumer from filing or participating in a class action concerning the covered consumer financial product or service. Second, the Final Rule requires covered providers to submit specified arbitral and court records to the CFPB.
Stay tuned for a Paul Hastings StayCurrent article discussing the scope and impact of the Final Rule, including the possibility of the Congressional Review Act being used to overrule the CFPB’s regulations implementing the Final Rule.