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Category Archives: Arbitration

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CFPB official confirms larger participant rule for auto finance coming soon

Posted in Arbitration, Auto Finance, CFPB Exams

Today is the final day of CBA Live 2014, which is being held at the Gaylord Hotel in National Harbor, MD.  I spoke at a program yesterday about the CFPB’s ongoing arbitration study under Section 1028 of Dodd-Frank.  Based on the CFPB’s December 12, 2013 partial release of data, I have predicted that the CFPB will, at a minimum,… More >

CA federal court rejects challenge to CFPB’s constitutionality

Posted in Arbitration, CFPB General

The California federal district court hearing the CFPB’s enforcement action against Morgan Drexen has rejected Morgan Drexen’s challenge to the CFPB’s constitutionality.  Although similar challenges have been made in other cases, this appears to be the first decision to rule on the merits of such a challenge.  The CFPB’s enforcement action followed the filing of… More >

Preliminary arbitration study results: is the Bureau keeping an open mind?

Posted in Arbitration

Following up on our earlier post, we have now had a chance to review the CFPB’s 168-page report containing some preliminary results of its consumer arbitration study.  Our responses to some of the Bureau’s specific findings can be accessed here.  While we are encouraged that the Bureau recognizes the importance of studying the relative benefits… More >

CFPB releases preliminary results of arbitration study

Posted in Arbitration

Earlier today, the CFPB released the preliminary results of its study of consumer arbitration.  The study is mandated by Section 1028 of the Dodd-Frank Act.  We are reviewing the 168-page report and will share our reactions in a legal alert that will be available on the blog. Follow Alan on Twitter at @AlanKaplinsky  

CFPB to hold December 12 field hearing on arbitration

Posted in Arbitration

The CFPB announced today that it will be holding a field hearing on arbitration on December 12, 2013 at 11 a.m. CST in Dallas, Texas.  The hearing will feature remarks from Director Cordray and testimony from consumer groups, industry representatives, and members of the public.  Consistent with its typical practice, the CFPB may use the… More >

FTC files amicus challenging arbitration provision

Posted in Arbitration

As industry and consumers await the results of the CFPB’s arbitration study, the FTC became the latest federal agency to weigh in on consumer arbitration issues.  Recently, at the invitation of the Seventh Circuit, the FTC filed an amicus brief supporting a class action lawsuit brought by consumers challenging a tribal payday lender’s practice of… More >

Director Cordray gives wide-ranging testimony to House Financial Services Committee

Posted in Arbitration, CFPB Enforcement, CFPB General, CFPB Rulemaking, Credit Reports

Although the House Financial Service Committee’s hearing last Thursday was entitled “The Semi-Annual Report of the Consumer Financial Protection Bureau,” the contents of the report received little mention from committee members.  Instead, committee members questioned Director Cordray, the sole hearing witness, on a wide range of topics.  Highlights include the following: The CFPB’s data collection… More >

Prominent industry trade groups nix CFPB’s proposed telephone survey of consumers

Posted in Arbitration

As part of its on-going study of consumer arbitration mandated by the Dodd-Frank Act, the CFPB announced on June 7, 2013 that it is seeking funding from the Office of Management and Budget to undertake a telephone survey of 1,000 credit card holders to ascertain their awareness of and perceptions regarding the arbitration provisions in… More >

Supreme Court arbitration decision raises stakes for CFPB arbitration study

Posted in Arbitration

Last week, in its decision in American Express Co. v. Italian Colors Restaurants, the U.S. Supreme Court delivered a knock-out punch to the last major court challenge to the use of class action waivers in consumer arbitration agreements.  The court rejected the plaintiffs’ attempt to create a “vindication of federal statutory rights” exception to the landmark… More >

CFPB supporting documentation for arbitration study telephone survey includes justification and proposed questions

Posted in Arbitration

As we reported, the CFPB has asked the Office of Management and Budget to approve the Bureau’s plans to conduct a national telephone survey of 1,000 credit card holders as part of its study of the use of mandatory arbitration agreements in connection with the offering of consumer financial products and services.  It is also… More >

CFPB seeking approval to conduct telephone survey of credit card holders for arbitration study

Posted in Arbitration

The CFPB is seeking approval from the Office of Management and Budget to conduct a national telephone survey of 1,000 credit card holders as part of its study of the use of mandatory arbitration agreements in connection with the offering of consumer financial products and services.  The survey is the subject of a notice scheduled to… More >

Director Cordray’s appearance at Senate Banking Committee hearing yields arbitration news

Posted in Arbitration, CFPB General

The only new item of information revealed by Director Cordray during his appearance yesterday before the Senate Banking Committee hearing (in response to a question from Senator Elizabeth Warren) was that he feels “quite sure” that  at least “some” of the results of the CFPB’s study of consumer arbitration will be publicly released this year…. More >

CFPB responds to arbitration study inquiry from Republican House members

Posted in Arbitration

Last April, the CFPB announced that it was beginning its study of consumer arbitration as mandated by Section 1028 of the Dodd-Frank Act.  Last week, nearly a year after that announcement, David Silberman, the CFPB’s Associate Director for Research, Markets, and Regulations, sent a letter to four Republican House members responding to their letter inquiring about the… More >

U.S. government takes position on validity of class action waivers in arbitration agreements with CFPB on sidelines (for now)

Posted in Arbitration

On January 30, the United States filed an amicus brief in the U.S. Supreme Court supporting the Respondents in American Express Company v. Italian Colors Restaurant, No. 12-133, an extremely important case involving the Federal Arbitration Act (FAA).  As described in more detail in our legal alert issued soon after the Supreme Court agreed to… More >

Pew arbitration report could be sent to CFPB

Posted in Arbitration

 The Pew Charitable Trust has released a report on the use of arbitration clauses by banks in checking account agreements. The report contains Pew’s findings on the prevalence of arbitration clauses and consumer attitudes about arbitration.  It has been reported that Pew has sent or will send the report to the CFPB to use in… More >

CFPB engages Professor Christopher Drahozal as a research consultant on its arbitration study

Posted in Arbitration

This past Wednesday afternoon I participated as a panel member in a symposium sponsored by the University of Maryland Law School entitled “Great Conversations: The Role of Consumer Arbitration in Consumer Lending.”   Also on the panel were Will Wade-Gery, who is heading up the CFPB’s empirical study on consumer arbitration that was announced last April, and Professor… More >

CFPB releases comments on arbitration study

Posted in Arbitration

Earlier this week, we shared the comment letter that was filed jointly by the American Bankers Association, the Consumer Bankers Association and The Financial Services Roundtable in response to the CFPB’s Request for Information Regarding Scope, Methods, and Data Sources for Conducting Study of Pre-Dispute Arbitration Agreements.  Ballard Spahr was engaged by the trade groups to… More >

Trade groups comment on CFPB arbitration study

Posted in Arbitration

The American Bankers Association, the Consumer Bankers Association and The Financial Services Roundtable have filed a joint comment letter responding to the CFPB’s Request for Information Regarding Scope, Methods, and Data Sources for Conducting Study of Pre-Dispute Arbitration Agreements.  Ballard Spahr served as counsel to the trade groups in preparing the comment letter.  The Dodd-Frank… More >

CFPB issues request for information to guide arbitration study

Posted in Arbitration

As a precursor to its study of consumer arbitration mandated by Section 1028 of the Dodd-Frank Act, the CFPB issued today a “Request for Information Regarding Scope, Methods, and Data Sources for Conducting Study of Pre-Dispute Arbitration Agreements.”  The request, which will be published in the Federal Register, seeks public comment by June 23, 2012 on a… More >

Arbitration is off the CFPB back burner

Posted in Arbitration

Section 1028 of Dodd-Frank requires the CFPB to conduct a study of the use of pre-dispute arbitration provisions in consumer financial services contracts. It requires it to provide a report to Congress and to then decide whether to issue a regulation which will prohibit their use if the study concludes that it is not in… More >