CFPB Paves Way for New Limits on Arbitration
April 25, 2012
The Consumer Financial Protection Bureau is soliciting input for a study that likely will lead to new restrictions on consumer arbitration clauses, which critics say can strip consumers of their right to litigate. The agency is initiating an inquiry, required under Dodd-Frank, into how arbitration and arbitration clauses affect consumers and financial services firms. Feedback will be accepted through June 23. Specifically, the regulator wants to know how frequently arbitration clauses are stipulated for consumer financial products and services, what claims consumers bring in arbitration, if financial firms bring claims against consumers, how each side is affected by actual arbitrations, and how they are affected by the clauses outside of arbitration. The CFPB will use the inquiry to determine whether new rules are needed to protect consumers.
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