Originally from Alternatives to the High Cost of Litigation

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The Consumer Financial Protection Bureau on May 5 delivered a proposal to regulate arbitration by banning the waivers of class processes that often accompany the alternative dispute resolution process in consumer contracts, and require individualized processes.

The proposed regulation would apply to consumer financial services. The CFPB officially released the proposal for public comment in late May, with the period for submissions running through August 22.

Last month, Alternatives examined the CFPB’s proposal presentation. See Russ Bleemer, “CFPB Delivers Its Proposed Class Waiver Ban,” 34 Alternatives 82 (June 2016) (available at http://bit.ly/28vnZuj). This month, some of the key provisions of the proposed regulation likely to draw comments are discussed below.