Say Goodbye to Mandatory Arbitration—And Hello to Class Actions

Mandatory arbitration as we know it is on the way out. The Consumer Financial Protection Bureau on Wednesday announced that it plans to propose rules that would prevent consumer financial services companies from using arbitration clauses to block class actions. The implications are huge.

October 06, 2015 at 07:26 PM

5 minute read

By Jenna Greene
Editor and columnist at The Litigation Daily

Mandatory arbitration as we know it is on the way out.

The Consumer Financial Protection Bureau today announced that it plans to propose rules that would prevent consumer financial services companies from using arbitration clauses to block class actions.

The CFPB stopped short of seeking a ban on all mandatory arbitration. Banks, credit card issuers, private student loan providers and other companies that fall under the CFPB's jurisdiction can still force individual consumers to arbitrate disputes.