In an article published by Westlaw Journal, Bass, Berry & Sims attorney John Speer provides insight on the Consumer Financial Protection Bureau's (CFPB) proposed rule barring class-action waivers in arbitration clauses. The 90-day comment period for the rule came to an end on August 22, with some comments reflecting the opinion that the rule, if adopted, would inflict serious financial harm on the public as well as providers of financial services and products. Other comments said that if the rule is not adopted, financial service companies will continue to use arbitration to prevent the enforcement of consumer protection laws and avoid responsibility for their violations. John concludes that whether the rule is needed to protect consumers and the public interest – given the deficiencies in the empirical data, methodology and analysis relied on by the CFPB to justify the rule – will be answered in the litigation that will follow if the rule is adopted.
The full article, "The CFPB's Proposed Arbitration Rule – for the Protection of Consumers and in the Public Interest?" was published by Westlaw Journal Bank & Lender Liability on October 3, 2016 and is available in the PDF below.