CFPB has issued a final rule to regulate arbitration agreements in contracts for specified consumer financial products and services in the core consumer financial markets of lending money, storing money, and moving or exchanging money. First, the final rule prohibits covered providers from using an agreement with a consumer that provides for arbitration of any future dispute between the parties to bar the consumer from filing or participating in a class action concerning the covered consumer financial product or service. Second, the final rule requires covered providers that are involved in an arbitration pursuant to a pre-dispute arbitration agreement to submit specified arbitral records to CFPB and to submit specified court records. CFPB is also adopting official interpretations to the regulation. The rule’s effective date is 60 days following publication in the Federal Register and applies to contracts entered into more than 180 days after that.
View the final rule here.