CFPB Rule Proposes to Modify Mandatory Arbitration Clauses in Favor of Consumers

CFPB Rule Proposes to Modify Mandatory Arbitration Clauses in Favor of Consumers

The Consumer Financial Protection Board (CFPB) has proposed a new rule that would modify mandatory arbitration clauses and, ultimately, restore consumers’ fundamental right to class action courtroom trials against financial institutions. In the new proposal, while financial institutions may still impose a requirement of having individual disputes handled by private arbitration, class action lawsuits are no longer forbidden. [Read more…]