Skip to main content

  • AddRemove
  • Build a Report 
Legal Update

Time to Prepare for the CFPB’s Proposed Rule Imposing a De Facto Ban on Arbitration in the Consumer Financial Services Sector

13 April 2016
Mayer Brown Legal Update

Arbitration provides a fair, easy-to-use and efficient means for resolving disputes. Many financial services companies have established arbitration programs to decide customer disputes.

If the US Consumer Financial Protection Bureau (“CFPB” or “the Bureau”) has its way, that all will change.

The CFPB is about to issue a rule that, if it goes into effect, will effectively eliminate these arbitration programs. As outlined by the Bureau, the proposed rule—which the Bureau says it plans to issue sometime in the next several weeks—will prohibit arbitration clauses unless the clauses also permit consumers to bring class action lawsuits.

That will inevitably result in the elimination of arbitration in the financial services context.

Here’s why.


  • Steven M. Kaplan
    T +1 202 263 3005
  • Andrew J. Pincus
    T +1 202 263 3220
  • Archis A. Parasharami
    T +1 202 263 3328
  • Stephen Lilley
    T +1 202 263 3865

The Build a Report feature requires the use of cookies to function properly.  Cookies are small text files that are placed on your computer by websites that you visit. They are widely used in order to make websites work, or work more efficiently.  If you do not accept cookies, this function will not work.  For more information please see our Privacy Policy

You have no pages selected. Please select pages to email then resubmit.