United States:
CFPB Proposes Ban On Class Action Waivers But Not Individual Arbitration
09 October 2015
Reed Smith
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On October 7, the Consumer Financial Protection Bureau
("CFPB") proposed a ban on class action waivers in
consumer financial products and services contracts. Pending review
by a Small Business Review Panel, the ban would potentially take
effect in 2018, resulting in increased class action litigation
against financial institutions. The proposal does, however,
preserve mandatory pre-dispute arbitration clauses for individuals.
Bank and nonbank lenders should be aware of the CFPB's proposal
and what it will mean for them going forward.
For more information on this topic, please click
here.
This article is presented for informational purposes only
and is not intended to constitute legal advice.
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