Today, October 7, 2015, the Consumer Financial Protection Bureau issued its proposals regarding arbitration agreements. Under these proposals, arbitration agreements in a contract for consumer financial products or services must explicitly state that the arbitration agreement does not apply to class actions filed in court, unless and until class certification is denied or the class claims are dismissed. Also, to help monitor wrongdoing and compliance with the laws, the Bureau proposed that companies would be required to submit to the Bureau copies of arbitral awards as well as arbitral claims filed against them, and the Bureau may possibly publish these documents on their website.
These proposals, if ultimately adopted, would be landmark regulations designed to protect consumers. To see an outline of the Bureau’s proposals, click here.