The Consumer Financial Protection Bureau (CFPB) announced its consideration of rules banning companies from using arbitration to avoid class action cases at a hearing in Denver on October 7. Additionally, the CFPB is proposing that if those rules are passed, companies would be required to provide arbitration filings and written awards to consumers.

During the hearing, Alan Kaplinsky, a partner at Ballard Spahr speaking on a panel, noted out that the overwhelming majority of consumer disputes are resolved informally, foregoing arbitration or a class action lawsuit.

“The CFPB has concluded, quite illogically, that class actions need to be preserved despite the adverse effects on consumers, the very group they’re charged with protecting,” he said.

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Consumer Financial Services
Consumer Financial Protection Bureau
Bank Regulation and Supervision