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Service Contracts Financial Services Industry

Troutman Pepper

EDVA Judge Invalidates Arbitration Clause in Online Terms and Conditions

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In a recent decision, EDVA Judge Rossie Alston invalidated the arbitration clause in the terms and conditions for online sales through the Lowe’s Home Centers website on the grounds that the terms and conditions were illusory...more

Sheppard Mullin Richter & Hampton LLP

CFPB Director Critical of Small Bank Core Service Providers

Recently, CFPB Director Rohit Chopra spoke at a joint meeting of the CFPB’s Community Bank Advisory Council and Credit Union Advisory Council in which he expressed concerns that core service providers that many small banks...more

Hudson Cook, LLP

Recent Settlement with Massachusetts AG Addresses Compliance Emphasis on Collection Calls, Repossession Notices, and Service...

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On September 1, 2021, the Commonwealth of Massachusetts, through the Massachusetts attorney general, entered into a settlement agreement and related Assurance of Discontinuance with a sales finance company. The AOD identifies...more

Morgan Lewis

FINRA Member Firms Promptly Should Review Predispute Arbitration Provisions in Customer Agreements

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Pursuant to FINRA Regulatory Notice 21-16 that was issued on April 21, 2021, FINRA has observed certain practices that could subject firms to disciplinary action concerning predispute arbitration provisions in customer...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

Proskauer - New Media & Technology

Notice of Terms via Buried Link within a Post-Sale Email Unenforceable

In Starke v. SquareTrade, Inc., No. 17-2474, 2019 WL 149628 (2d Cir. Jan. 10, 2019), the Second Circuit affirmed a ruling that denied a web service’s motion to compel arbitration, finding that the user did not have reasonable...more

Bass, Berry & Sims PLC

Arbitration Regulation Bars Class Action Waivers

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On July 10, the Consumer Financial Protection Bureau(CFPB) issued its final rule preventing certain financial product and service providers from including in their consumer contracts pre-dispute arbitration provisions that...more

Ballard Spahr LLP

Will the CFPB issue a final arbitration rule before Jan. 20?

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Last week, the Wall Street Journal reported that the CFPB is pushing to finalize its arbitration rule before Donald Trump’s inauguration as President on January 20.  The comment period on the proposed rule closed on August...more

Ballard Spahr LLP

Bi-partisan Congressmen seek arbitration safe harbor allowing class action waivers

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Republican Congressman Randy Neugebauer, who chairs the House Financial Services Committee’s Subcommittee on Financial Institutions and Consumer Credit, and Democratic Congressman W. Lacy Clay, the Subcommittee’s Ranking...more

Ballard Spahr LLP

Trade groups comment on CFPB arbitration proposal

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The American Bankers Association, the Consumer Bankers Association and The Financial Services Roundtable (Associations) have filed a joint letter commenting on the CFPB’s proposed rule regulating consumer arbitration...more

Ballard Spahr LLP

House defeats amendment to 2017 appropriations bill striking requirements for CFPB arbitration rule

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By a vote of 236-181, the House of Representatives rejected an amendment offered by two Democratic Congressman to H.R. 5485, the Financial Services and General Government Appropriations Act, which covers appropriations for...more

Ballard Spahr LLP

Democratic lawmakers urge adoption of CFPB arbitration proposal

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A total of 102 Democratic lawmakers, consisting of 37 Democratic Senators joined by Independent Senator Bernie Sanders and 65 House members, have signed on to letters sent to Director Cordray expressing support for the CFPB’s...more

Burr & Forman

The Best Defense is a Good Strategy: Planning for the Arbitration Rule

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On May 5, 2016, the Consumer Financial Protection Bureau (“CFPB”) held its fourth field hearing on Arbitration and issued a proposed Rule that would prohibit the use of arbitration clauses that block consumers’ participation...more

Ballard Spahr LLP

Comment period on CFPB proposed arbitration rule ends August 22

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With the publication of the CFPB’s proposed arbitration rule in today’s Federal Register, the 90-day comment period is now running.  Comments on the proposal must be received on or before Monday, August 22, 2016....more

Ballard Spahr LLP

High Praise for WSJ Editorial, with a Small Caveat

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A recent editorial in the Wall Street Journal is a “must read” for those who will be affected if the CFPB’s May 5, 2016 proposed rule banning class action waivers in consumer financial services arbitration agreements becomes...more

Ballard Spahr LLP

House Financial Services Committee Scrutinizes Basis of Proposed CFPB Arbitration Rule

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On Wednesday May 18, 2016, the House Financial Services Committee’s Subcommittee on Financial Institutions and Consumer Credit held a hearing entitled “Examining the CFPB’s Proposed Rulemaking on Arbitration: Is it in the...more

Ballard Spahr LLP

House to hold May 18 hearing on CFPB’s proposed arbitration rule

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On May 18, 2016, the House Financial Services Committee’s Subcommittee on Financial Institutions and Consumer Credit will hold a hearing entitled “Examining the CFPB’s Proposed Rulemaking on Arbitration: Is it in the Public...more

Stinson - Corporate & Securities Law Blog

CFPB Proposes Controversial Rule to Limit Use of Arbitration Agreements

On May 5, 2016, the Consumer Financial Protection Bureau (CFPB) announced a long-awaited and highly-controversial proposed rule that, if adopted, would prohibit certain financial services companies from banning consumer class...more

Troutman Pepper

Is This the End of Arbitration for Consumer Financial Disputes?

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The proposed rule has broad implications for the financial industry, which has relied on class action waivers in consumer agreements to ensure that arbitration is a cost-effective way of resolving disputes with customers....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

Stinson LLP

CFPB Proposal to Allow More Class Action Lawsuits Against Banks

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The Consumer Financial Protection Bureau (CFPB) released a proposed rule Thursday that would significantly increase consumers' ability to sue banks and other financial service providers. The proposal, which has been highly...more

Bradley Arant Boult Cummings LLP

CFPB’s Proposed Rule Bans Class Waivers in Financial Services Industry

As expected, yesterday the Consumer Finance Protection Bureau (CFPB) announced a proposed rule that would effectively ban class action waivers in pre-dispute arbitration agreements for a broad range of consumer financial...more

Baker Donelson

CFPB Wants to Prohibit Class Action Waivers in Arbitration Clauses

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Today, the CFPB announced its proposed rule that would prohibit class action waivers in arbitration clauses in contracts governing consumer finance products. While the proposal does not include a complete ban on all...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

Pierce Atwood LLP

Consumer Financial Protection Bureau Publishes Proposed Rule Precluding Class Action Waivers in Arbitration Clauses

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As we reported last year, in October 2015 the Consumer Financial Protection Bureau published an outline of proposals that would limit the use of arbitration provisions in contracts for consumer financial products. On May 5,...more

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