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Arbitration Agreements Federal Arbitration Act Consumer Financial Products

Orrick, Herrington & Sutcliffe LLP

The Revival of Badie Arbitration Suits in Consumer Finance

Bilateral arbitration is under increasing attack. While businesses evaluate whether and how to update their arbitration clauses in light of the U.S. Court of Appeals for the Ninth Circuit's October decision in Heckman v. Live...more

Katten Muchin Rosenman LLP

The Latest Attack on Consumer Arbitration Agreements

The war against arbitration agreements continues apace. The latest volley comes from the U.S. Court of Appeals for the Fourth Circuit, Johnson v. Continental Finance Company, LLC, No. 23-2047 (4th Cir. Mar. 11, 2025). In...more

Troutman Pepper Locke

Fourth Circuit Holds SCRA Does Not Bar Mandatory Arbitration in Consumer Agreements, Forcing Portion of Class Action Into...

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On January 27, a three-judge panel of the U.S. Court of Appeals for the Fourth Circuit issued a significant opinion holding that the Servicemembers Civil Relief Act (SCRA) does not prohibit the enforcement of arbitration...more

Saul Ewing LLP

Pennsylvania Judge Rejects Loan Provider’s Effort to Enforce Arbitration and Class Action Waiver Clauses Found in Smartphone App

Saul Ewing LLP on

For the past decade, many courts have found class action waivers in consumer contracts to be valid and enforceable under the Federal Arbitration Act. However, recently, the Allegheny Court of Common Pleas in Pittsburgh...more

Ballard Spahr LLP

New Jersey Supreme Court Enforces Stand-Alone Class Action Waiver

Ballard Spahr LLP on

Earlier this year, the New Jersey Supreme Court held in Pace v. Hamilton Cove that class action waivers in consumer contracts that do not contain an arbitration clause (i.e., a stand-alone class action waiver) are not per se...more

Ballard Spahr LLP

Consumer Finance Monitor Podcast Episode: A Discussion of Industry and Consumer Perspectives on Mass Arbitration

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Our special guest is Professor Richard Frankel of Drexel University Thomas R. Kline School of Law and the author of a recent article on mass arbitration. In this episode, we first discuss what mass arbitration is, how it...more

Troutman Pepper Locke

Ninth Circuit Reverses District Court, Sending Opportunity Financial Lawsuit to Arbitration

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The U.S. Court of Appeals for the Ninth Circuit recently reversed a district court’s ruling, which had denied a motion to compel arbitration of Opportunity Financial (OppFi) on the basis that the arbitration clause was...more

Ballard Spahr LLP

Comment letters from consumer advocates bolster case against CFPB rulemaking on post-dispute arbitration clauses

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We previously reported and released a podcast episode on comments that we and Professor David Sherwyn of Cornell University submitted in opposition to the Petition for Rulemaking filed by a number of consumer advocacy groups...more

Ballard Spahr LLP

Ballard Spahr attorneys and Cornell University law professor submit comments opposing CFPB rulemaking on post-dispute consumer...

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Ballard Spahr Senior Counsel Alan S. Kaplinsky and Mark J. Levin, and David Sherwyn, Professor of Law at Cornell University’s School of Hotel Administration, today submitted lengthy comments to the Consumer Financial...more

Ballard Spahr LLP

OppFi Hat Trick: Third Federal Court Upholds Arbitration Clause

Ballard Spahr LLP on

Earlier this month, in Fama v. Opportunity Financial LLC, a Magistrate Judge of the federal district court for the Western District of Washington held that the arbitration provision in OppFi’s installment loan agreement is...more

Carlton Fields

SCOTUS Removes Burden Handicapping Appeals Seeking Arbitration

Carlton Fields on

The U.S. Supreme Court’s June 2023 decision in Coinbase Inc. v. Bielski requires that district court litigation in any matter remain in the starting gate while any appeal from a denial of a motion to compel arbitration in...more

Ballard Spahr LLP

Further thoughts on consumer understanding of arbitration clauses

Ballard Spahr LLP on

Professor Jeff Sovern recently blogged about the FTC’s June 2023 revisions to its Endorsement Guide. The Guide helps advertisers and endorsers make sure that their advertising using endorsements or testimonials is truthful...more

Proskauer - Minding Your Business

Ninth Circuit Splits From the Second, Third and Fourth Circuits in “Brain Twister” Arbitration Case

Arbitration provisions are common features of commercial agreements.  Arbitration is often touted as a cost-effective alternative to litigation that provides contract parties the freedom to decide everything from what law the...more

Ballard Spahr LLP

House passes bill to ban mandatory arbitration agreements; White House threatens veto

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This past Friday, by a vote of 225-186, the House passed H.R. 1423, the “Forced Arbitration Injustice Repeal Act.”  A Senate companion bill (S. 610) was introduced in February 2019 and referred to the Senate Judiciary...more

Bilzin Sumberg

CFPB Arbitration Rule Eliminated by Congress and President

Bilzin Sumberg on

On November 1, President Trump formally did away with a Consumer Financial Protection Bureau (CFPB) arbitration rule that would have given consumers the opportunity to file class actions against banks and other companies in...more

Troutman Pepper Locke

Consumer Data Breach: Equifax and Arbitration

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The latest large consumer data breach, this time involving Equifax, has also shed a sharp light on an ongoing controversy about consumers’ access to justice. In taking steps to ameliorate its PR crisis, Equifax found itself...more

Seyfarth Shaw LLP

Senate Kills CFPB Rule Prohibiting Class Action Waivers

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Yesterday the Senate struck down a new Consumer Financial Protection Bureau (“CFPB”) rule which would have prohibited providers of financial products and services from including class action waivers in their arbitration...more

Smith Debnam Narron Drake Saintsing & Myers,...

Congress Votes To Repeal CFPB’s Arbitration Rule

The Senate voted on Tuesday, October 24, to repeal the CFPB’s Arbitration Rule first proposed in May of 2016 and issued in its final form in July. The rule would have imposed limitations on the use of pre-dispute arbitration...more

Troutman Pepper Locke

Senate Strikes Down CFPB Arbitration Rule

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The short-lived rule will likely be remembered as part of the Trump Administration’s dismantling of the Obama Administration’s legacy, and as continuing the trend of courts strictly enforcing agreements to arbitrate as...more

Hinshaw & Culbertson LLP

CFPB Rule Bars the Use of Mandatory Arbitration Clauses to Prohibit Class Actions; Some Members of Congress Vow to Take Action to...

This week, the Consumer Financial Protection Bureau (CFPB) adopted a final rule prohibiting a broad range of financial firms from using mandatory arbitration clauses to bar class action suits and received wide press coverage....more

Ballard Spahr LLP

Dept. of Ed. Bans Pre-Dispute Arbitration Agreements by Title IV Schools

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The U.S. Department of Education has issued a final rule that broadly addresses the ability of a student to assert a school's misconduct as a defense to repayment of a federal student loan. The final rule includes a ban on...more

Cadwalader, Wickersham & Taft LLP

CFPB Targets Mandatory Arbitration Clauses to Protect Consumer Class Actions

On May 5, 2016, the Consumer Financial Protection Bureau (“CFPB”) issued a proposed rule to prohibit providers of certain consumer financial products and services from using arbitration clauses to block consumers from filing...more

Orrick, Herrington & Sutcliffe LLP

CFPB Proposes New Class Action Arbitration Rule: Possible Challenges and Practical Impacts

The U.S. Consumer Financial Protection Bureau (CFPB) yesterday issued a Notice of Proposed Rulemaking that, among other things, would prohibit the use of class action waivers in arbitration clauses in connection with a broad...more

Ballard Spahr LLP

CFPB issues proposed rule to prohibit class action waivers in consumer arbitration agreements

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As widely anticipated, the CFPB announced at its field hearing today in Albuquerque, New Mexico that it is proposing regulations that would prohibit covered providers of certain consumer financial products and services from...more

Carlton Fields

CFPB Publishes Proposed Rule Banning Pre-Dispute Arbitration Agreements in Consumer Class Actions

Carlton Fields on

This week, the Consumer Financial Protection Bureau (CFPB or Bureau) published a proposed rule which would prohibit application of pre-dispute arbitration agreements to class litigation involving a broad range of consumer...more

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