The Consumer Financial Protection Bureau has announced a proposal to restrict arbitration clauses that prohibit class-action lawsuits and that would give borrowers more rights to sue banks and credit-card companies.

At the October 7 field hearing in Denver, Alan S. Kaplinsky, partner at Ballard Spahr, indicated that the overwhelming majority of consumer disputes are resolved informally, before ever making it to arbitration or filing a class-action lawsuit.

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Consumer Financial Services
Consumer Financial Protection Bureau
Bank Regulation and Supervision