Many financial services companies have embraced arbitration as a fair and efficient means of resolving customer disputes. But a new proposed rule announced by the Consumer Financial Protection Bureau on May 5 would require that companies’ arbitration clauses also permit consumers to bring class action lawsuits. Put another way, the CFPB plans to ban class action waivers in arbitration agreements. Providers of consumer financial products or services will need to reassess their arbitration programs and develop strategies to respond to the predictable increase in abusive class action litigation if the CFPB’s new rule is finalized and survives judicial review.
On Monday, May 9, please join Mayer Brown partners Andy Pincus, Steven Kaplan and Archis Parasharami for a webinar about the implications of the CFPB’s proposed rule. They will discuss:
- The requirements, scope and potential impact of the proposed rule;
- The notice-and-comment process and likely timing for finalization of a rule;
- Proactive responses that companies should consider; and
- Prospects for judicial and legislative challenges.
We hope you can join us for this important discussion.