The Consumer Financial Protection Bureau and the Future of Class Action Waivers BY THEANE EVANGELIS, LAUREN BLAS
نویسنده
چکیده
AND DANIEL ADLER I n May 2016, after conducting a years-long study on the use of arbitration agreements in consumer finance, the Consumer Financial Protection Bureau announced its plan to limit the use of class action waivers in pre-dispute arbitration agreements. The CFPB’s proposal, if enacted into law unchanged, could face significant legal challenges. At bottom, the proposal rests on the flawed premise that class action litigation is the best way to protect consumers from overreach by financial institutions, but the data— including some of the Bureau’s own data—simply do not bear this out. In any event, it is unlikely that the Bureau’s regulations will survive legal scrutiny: The Bureau itself is constitutionally suspect, and its proposed regulations would run headlong into the Federal Arbitration Act and the string of recent Supreme Court cases affirming the legality of class action waivers, including in the consumer finance context.
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