Alert May 01, 2012

CFPB Launches Inquiry into Arbitration Clauses

The CFPB launched an inquiry into how it should study arbitration clauses and agreements between financial service companies and consumers.  Section 1028(a) of the Dodd Frank Act requires the CFPB to conduct a study of arbitration agreements and clauses and provide a report to Congress.  For purposes of conducting the study, the CFPB issued a public request for information, seeking comment in three areas: (1) prevalence of use of arbitration clauses and agreements; (2) use and impact in arbitration proceedings; and (3) impact and use of outside arbitration proceedings.  Comments are due June 23, 2012. Click here for the related press release and here for the information request.