UNITED STATES – The Consumer Financial Protection Bureau (CFPB) recently proposed a new rule for public comment that would prohibit providers of certain consumer financial products and services from using arbitration agreements with consumers as a means of blocking the consumer’s filing or participation in a class action. The proposed rule further requires such companies to report arbitration claims, awards, and related materials to the CFPB for possible publication. Some commentators have suggested that such a rule would sound the death knell for private consumer arbitrations, reasoning that such financial service providers will not want to pay for these disputes twice.
