The Consumer Financial Protection Bureau (CFPB) is pushing ahead with its efforts to unilaterally ban the use of so-called “free pass” arbitration clauses by financial services providers.

In a speech before the regulatory agency’s Consumer Advisory Board, CFPB Director Richard Cordray made it more than clear where he stood on the subject. Cordray did not offer any clue when the proposals would be made public. But in an interview last week with National Mortgage Professional, Alan S. Kaplinsky, head of the Consumer Financial Services Group at Ballard Spahr LLP, questioned whether the CFPB took its congressionally mandated responsibility a bit too far by putting forward a ban without proving there was a serious harm to consumers.

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Consumer Financial Services
Mortgage Banking