Will the CFPB Take Action on Mandatory Arbitration?

The consensus had been the Consumer Financial Products Board, finally (but perhaps temporarily) able to act since the recess appointment of Richard Cordray as Director, would have too much on its plate to move quickly on its Congressional mandate to study consumer arbitration in financial services agreements. But Cordray was quoted in a Washington Post column over the weekend by Michelle Singletary giving arbitration a high priority.  “We understand the importance of this issue, and we’ll be moving forward as required by Congress,” Cordray said. Combined with the recent NLRB decision barring class waivers applied to labor law claims, that suggests a new determination to use regulatory means to respond to the Supreme Court’s arbitration overreaching.

Richard Cordray with President Obama

 

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