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Category Archives: Arbitration

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Trade groups comment on CFPB arbitration proposal

Posted in Arbitration

The American Bankers Association, the Consumer Bankers Association and The Financial Services Roundtable (Associations) have filed a joint letter commenting on the CFPB’s proposed rule regulating consumer arbitration agreements in financial services contracts. Ballard Spahr served as counsel to the Associations in preparing the comment letter.  The firm also served as counsel to the Associations… More >

Pew’s issue brief in support of the CFPB’s proposed arbitration rule: a flawed presentation

Posted in Arbitration

The Pew Charitable Trusts has released an issue brief, “Consumers Want the Right to Resolve Bank Disputes in Court,” in which it urges the CFPB to “expeditiously finalize” its proposed arbitration rule.  The CFPB’s proposal would prohibit covered providers of certain consumer financial products and services from using an agreement with a consumer that provides… More >

House defeats amendment to 2017 appropriations bill striking requirements for CFPB arbitration rule

Posted in Arbitration

By a vote of 236-181, the House of Representatives rejected an amendment offered by two Democratic Congressman to H.R. 5485, the Financial Services and General Government Appropriations Act, which covers appropriations for the fiscal year ending September 30, 2017.  (The bill was approved by the full House last month by a vote of 239-185.)  The… More >

Democratic lawmakers urge adoption of CFPB arbitration proposal

Posted in Arbitration

A total of 102 Democratic lawmakers, consisting of 37 Democratic Senators joined by Independent Senator Bernie Sanders and 65 House members, have signed on to letters sent to Director Cordray expressing support for the CFPB’s proposed arbitration rule.  The proposal would prohibit covered providers of certain consumer financial products and services from using an agreement with a… More >

ABA to sponsor July 20 program on CFPB arbitration proposal

Posted in Arbitration

On July 20, 2016, from 11:00 AM – 12:00 PM ET, the American Bar Association is sponsoring a program, “CFPB’s Proposed Arbitration Ban — What You Need To Know.”   The panelists will discuss the pros and cons of the CFPB’s arbitration proposal and its implications for industry.  Alan S. Kaplinsky, who chairs Ballard Spahr’s Consumer… More >

House approves FY 2017 appropriations bill containing curbs on CFPB authority

Posted in Arbitration

By a vote of 239-185, the House of Representatives has approved a fiscal year 2017 appropriations bill that contains various provisions intended to curb the CFPB’s authority.  Those provisions would fund the CFPB through the annual congressional appropriations process rather than through transfers from the Federal Reserve as currently provided by Dodd-Frank and change the… More >

House FY 2017 appropriations bill would curb CFPB authority, require another arbitration study

Posted in Arbitration, CFPB General

The fiscal year 2017 appropriations bill approved last week by the House Financial Services and General Government Appropriations Subcommittee of the House Appropriations Committee includes the following provisions intended to curb the CFPB’s authority: A provision under which, effective October 1, 2017,  the CFPB would be funded pursuant to the annual congressional appropriations process rather… More >

Comment period on CFPB proposed arbitration rule ends August 22

Posted in Arbitration

With the publication of the CFPB’s proposed arbitration rule in today’s Federal Register, the 90-day comment period is now running.  Comments on the proposal must be received on or before Monday, August 22, 2016. The proposed rule would prohibit covered providers of certain consumer financial products and services from using an agreement with a consumer that provides… More >

CFPB releases Spring 2016 rulemaking agenda

Posted in Arbitration, Mortgages, Overdrafts, Payday Lending, Prepaid Cards, Small Business

The CFPB has released its Spring 2016 rulemaking agenda.  The agenda sets the following timetables for key rulemaking initiatives:  Arbitration.  The Spring 2016 agenda does not reflect the CFPB’s release of its proposed arbitration rule on May 5, 2016, stating only that the CFPB “is preparing to issue a Notice of Proposed Rulemaking this spring.” … More >

High Praise for WSJ Editorial, with a Small Caveat

Posted in Arbitration

A recent editorial in the Wall Street Journal is a “must read” for those who will be affected if the CFPB’s May 5, 2016 proposed rule banning class action waivers in consumer financial services arbitration agreements becomes final. The editorial predicts that the proposed rule will encourage more class actions to be filed against financial… More >

House Financial Services Committee Scrutinizes Basis of Proposed CFPB Arbitration Rule

Posted in Arbitration, CFPB Rulemaking

On Wednesday May 18, 2016, the House Financial Services Committee’s Subcommittee on Financial Institutions and Consumer Credit held a hearing entitled “Examining the CFPB’s Proposed Rulemaking on Arbitration: Is it in the Public Interest and for the Protection of Consumers?” The Committee questioned the panel members on whether the CFPB’s proposed rule meets the mandate… More >

House to hold May 18 hearing on CFPB’s proposed arbitration rule

Posted in Arbitration

On May 18, 2016, the House Financial Services Committee’s Subcommittee on Financial Institutions and Consumer Credit will hold a hearing entitled “Examining the CFPB’s Proposed Rulemaking on Arbitration: Is it in the Public Interest and for the Protection of Consumers?” On May 5, 2016, the CFPB issued a proposed rule that would prohibit covered providers… More >

House Financial Services Committee investigating CFPB arbitration rulemaking

Posted in Arbitration

On April 20, 2016, Congressman Sean Duffy sent a letter to Director Cordray indicating that the House Financial Services Committee is investigating “the examination and possible regulation by the [CFPB] of pre-dispute arbitration agreements in contracts for consumer financial products and services.”  Now that the CFPB has formally released its proposed arbitration rule banning the… More >

CFPB issues proposed rule to prohibit class action waivers in consumer arbitration agreements

Posted in Arbitration

As widely anticipated, the CFPB announced at its field hearing today in Albuquerque, New Mexico that it is proposing regulations that would prohibit covered providers of certain consumer financial products and services from using an agreement with a consumer that provides for arbitration of any future dispute between the parties to bar the consumer from filing… More >

CFPB to hold May 5 field hearing on arbitration

Posted in Arbitration

The CFPB has announced that it will hold a field hearing in Albuquerque, New Mexico about arbitration on May 5, 2016.  We expect the field hearing to coincide with the release of the CFPB’s proposed rule on the use of arbitration agreements in certain consumer financial services contracts. In October 2015, the CFPB convened its… More >

Alan Kaplinsky receives Lifetime Achievement Award from American College of Consumer Financial Services Lawyers

Posted in Arbitration, CFPB General

I am delighted to report that Alan Kaplinsky has received the prestigious Senator William Proxmire Lifetime Achievement Award from the American College of Consumer Financial Services Lawyers.  The award is granted periodically to a person whose career has produced many years of distinguished accomplishments and contributions to the field of consumer financial services law.  Alan received the… More >

PLI’s “The CFPB Speaks” Panel Discussion

Posted in Arbitration, Auto Finance, CFPB Enforcement, CFPB General, CFPB People, CFPB Rulemaking, Hot Issues

On April 4, at the Practicing Law Institute’s (“PLI”) 21st Annual Consumer Financial Services Institute in Manhattan, Alan Kaplinsky (a co-chair of the institute) moderated a panel entitled “The CFPB Speaks,” where CFPB officials shared their own insights on industry trends on their radar, priorities for the coming years, and views on certain hot-button issues…. More >

Dept. of Education considering ban on use of arbitration agreements by schools receiving Title IV assistance

Posted in Arbitration, Student Loans

We recently blogged about Public Citizen, Inc.’s petition to the Department of Education requesting the Department to adopt a rule requiring schools to agree, as a condition of receiving Title IV assistance under the Higher Education Act, not to include pre-dispute arbitration agreements in enrollment or other agreements with students.  The ED now appears to be… More >

Public Citizen petitions Dept. of Education to ban use of arbitration agreements by schools receiving Title IV assistance

Posted in Arbitration

Public Citizen, Inc. has sent a petition to the Department of Education requesting the Department to adopt a rule that requires schools to agree, as a condition of receiving Title IV assistance under the Higher Education Act (HEA), not to include pre-dispute arbitration agreements in enrollment or other agreements with students. In the petition, Public… More >

Director Cordray signals no change in direction regarding arbitration

Posted in Arbitration

At a presentation on February 18, 2016 to the American Constitution Society, CFPB Director Richard Cordray devoted most of his remarks to the subject of consumer arbitration. Director Cordray revealed that the effect on consumers of mandatory predispute arbitration clauses “has been on our radar screen since the very beginning,” and he confirmed that the… More >

Democratic Senators introduce bill to limit use of arbitration agreements

Posted in Arbitration

Democratic Senators Patrick Leahy and several other Democratic Senators have cosponsored a bill that would place new limits on the use of arbitration agreements.  According to Senator Leahy’s press release, the “Restoring Statutory Rights and Interests of the States Act of 2016,” responds to the New York Times’ publication last November of a series of… More >

Alan Kaplinsky and Professor Sovern: the arbitration debate continues

Posted in Arbitration

In a new American Banker article, Alan Kaplinsky, Practice Leader of Ballard Spahr’s Consumer Financial Services Group, responded to an article by Professor Jeff Sovern that called into question Alan’s prediction that the CFPB’s proposed plan to ban class action waivers in consumer arbitration agreements will cause companies to abandon arbitration completely. In the article,… More >

NY Times publishes another article on arbitration

Posted in Arbitration

This past Sunday, the NY Times published an article carrying the headline, “Efforts to Rein in Arbitration Come Under Well-Financed Attack.”  The “well-financed attack” to which the headline refers appears to be an advertisement critical of the CFPB that ran during last week’s Republican presidential debate and recent efforts by the U.S. Chamber of Commerce… More >