The Consumer Financial Protection Bureau (CFPB) has announced the launch of a public inquiry designed to understand ‘how consumers and financial services companies are affected by arbitration and arbitration clauses.’
For purposes of conducting the study, the CFPB is asking the public about the prevalence of arbitration clauses in consumer financial products and services and what claims consumers bring in arbitration against financial services companies. The bureau is also seeking to determine if claims are brought by financial services companies against consumers in arbitration, how consumers and companies are affected by actual arbitrations, and how consumers and companies are affected by arbitration clauses outside of actual arbitrations.
‘Arbitration clauses are found in many contracts for consumer financial products,’ says CFPB Director Richard Cordray. ‘We want to learn how arbitration clauses affect consumers and how effective arbitration is in resolving consumers' issues. This inquiry will help the bureau assess whether rules are needed to protect consumers.’
Comments on the request for information must be submitted to the CFPB by June 23.