Tag: Arbitration

CFPB Issues Draft Rule Banning Arbitration Clauses Preventing Class Actions

On May 5, 2016, the Consumer Financial Services Bureau issued a proposed rule that would ban consumer financial services providers from including arbitration clauses in new contracts that prevent customers from filing or joining class actions. The proposed rule does not prevent companies from requiring consumers to arbitrate individual disputes. In a statement accompanying the … Continue Reading

Busy CFPB Studying Mandatory Arbitration Clauses

April 24, 2012– The Consumer Financial Protection Bureau announced a study into mandatory arbitration clauses in consumer financial product contracts.  The CFPB is required under the Dodd-Frank Wall Street Reform and Consumer Protection Act to submit a study to Congress regarding the use of arbitration clauses in credit agreements, including contracts for credit and debit cards, bank accounts … Continue Reading

JPMorgan Chase Eliminates Mandatory Arbitration in Credit Card Contracts

American Banker reports that  JPMorgan Chase & Co. has agreed to eliminate mandatory arbitration clauses in its credit card contracts .   Bank of America made a similar decision in August 2009.   The scraping of mandatory arbitration clauses followed last summer’s settlement between National Arbitration Forum and the Minnesota attorney general, which included NAF’s agreement that it … Continue Reading