On July 10, the Consumer Financial Protection Bureau (CFPB) issued a controversial rule to prevent companies from using arbitration clauses to stop litigation over customer complaints.
1. Many of these clauses have been related to credit card or banking customer contracts. If consumers don’t agree with the arbitration, why haven’t they filed class action suits?
2. What does the new CFPB rule require?
3. When does the rule take effect?
4. Do you agree with the rule or think it needs to be reversed? Discuss.
Lane, S. (2017). Arbitration Clauses. The Hill, July 10 (Retrievable at http://thehill.com/policy/finance/341313-consumer-bureau-releases-rule-to-prevent-banks-credit-card-firms-from-blocking)