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Expert Analysis

CFPB Study Eyes Financial Services Arbitration Clauses

Law360, New York (January 17, 2014, 6:28 PM EST) -- On Dec. 12, 2013, the Consumer Financial Protection Bureau published its "Arbitration Study Preliminary Results," mandated by section 1028(a) of the Dodd-Frank Act ("study"). Unfortunately, despite its statements to the contrary, the study could be read as evidence that the Consumer Financial Protection Bureau intends to either ban or to severely limit arbitration provisions in consumer financial service contracts. Lenders and other financial service providers should consider the study's approach, possible actions by the CFPB and steps that can be taken in anticipation of those actions....

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