I have previously expressed serious doubt whether Director Cordray will issue a final arbitration rule. In the CFPB’s last semi-annual regulatory agenda issued last year, the CFPB stated that the arbitration rule would be...more
In an unusual turn-about, the U.S. Justice Department has reconsidered its earlier position in a set of closely watched arbitration cases that the Supreme Court will decide next term and filed an amicus brief supporting the...more
Emphasizing that the Federal Arbitration Act (FAA) preempts state laws that "single out arbitration agreements for disfavored treatment," the U.S. Supreme Court has overturned the Kentucky Supreme Court's refusal to enforce...more
On March 30, Director Cordray gave his annual speech to the United States Chamber of Commerce’s 11th Annual Capital Markets Summit. His prepared remarks focused on the CFPB’s role in adopting regulations....more
On April 7, 2017, the Rutgers Institute for Professional Education and Rutgers University Law Review will sponsor an all-day symposium entitled: “Resolving the Arbitration Dispute in Today’s Legal Landscape.” One of the four...more
On Monday, during “The CFPB Speaks” panel I moderated that was part of the Practicing Law Institute’s 22nd Annual Consumer Financial Services Institute in Manhattan, Diane Thompson, Deputy Assistant Director of the CFPB’s...more
Recently, Richard Cordray was interviewed by CNBC while eating breakfast at a diner in his hometown in Ohio. The interview was more noteworthy for what it failed to cover than for what it covered. He was not asked the...more
3/3/2017
/ Administrative Law Judge (ALJ) ,
Administrative Proceedings ,
Arbitration ,
Banking Sector ,
Class Action ,
Class Action Arbitration Waivers ,
Congressional Review Act ,
Constitutional Challenges ,
Consumer Financial Protection Bureau (CFPB) ,
PHH Corp. v CFPB ,
Removal For-Cause ,
RESPA ,
Richard Cordray ,
Single Director ,
Statute of Limitations ,
Trump Administration
Phone calls made by a lawn care company after the termination of a customer's contract were beyond the scope of the parties' agreement to arbitrate any claim "arising from or relating to" their contract, the U.S. Court of...more
2/22/2017
/ Arbitration ,
ATDS ,
Auto-Dialed Calls ,
Class Action ,
Consumer Contracts ,
Contract Terms ,
Federal Arbitration Act ,
Mandatory Arbitration Clauses ,
Right to Privacy ,
Robocalling ,
TCPA
Director Cordray has sent a letter to Senator Jeff Flake responding to a series of questions posed by the Senator on the CFPB’s proposed arbitration rule. The comment period on the proposed rule closed on August 22, 2016. ...more
2/10/2017
/ Arbitration ,
Arbitration Agreements ,
Attorney's Fees ,
Class Action ,
Class Action Arbitration Waivers ,
Congressional Review Act ,
Consumer Contracts ,
Consumer Financial Protection Bureau (CFPB) ,
Court Nullification ,
Dodd-Frank ,
Federal Arbitration Act ,
Richard Cordray
Adding more complexity to the issue of arbitration contract formation, the Ninth Circuit has rejected Samsung's attempt to compel individual arbitration of fraud claims asserted by plaintiffs in two class actions. Ruling in...more
1/25/2017
/ Arbitration ,
Cell Phones ,
Class Action ,
Consent ,
Contract Terms ,
Fraud ,
Mandatory Arbitration Clauses ,
Mobile Devices ,
Motion to Compel ,
Opt-Outs ,
Samsung ,
Smartphones ,
Warranties ,
Wireless Devices ,
Wireless Industry ,
Wireless Technology
The U.S. Supreme Court has agreed to decide an important issue that has deeply divided the Courts of Appeals—are arbitration provisions in employment agreements that waive an employee's right to bring or participate in class...more
1/16/2017
/ Arbitration ,
Arbitration Agreements ,
Case Consolidation ,
Certiorari ,
Class Action ,
Class Action Arbitration Waivers ,
Collective Actions ,
Employment Contract ,
Federal Arbitration Act ,
NLRA ,
SCOTUS ,
Section 7
The Cause of Action Institute has filed an action against the CFPB under the Freedom of Information Act (FOIA) seeking information related to the CFPB’s proposed arbitration rule. In its complaint filed in D.C. federal...more
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
11/29/2016
/ Arbitration ,
Arbitration Agreements ,
Class Action ,
Class Action Arbitration Waivers ,
Congressional Review Act ,
Constitutional Challenges ,
Consumer Contracts ,
Consumer Financial Products ,
Consumer Financial Protection Bureau (CFPB) ,
Final Rules ,
Financial Institutions ,
Financial Services Industry ,
Payday Loans ,
PHH Corp. v CFPB ,
SBREFA ,
Service Contracts ,
Title Loans ,
Trump Administration
The FTC has announced that to study the effectiveness of various class action settlement notice programs, it has issued orders to eight claims administrators requiring them to provide information on their procedures for...more
The Federal Trade Commission (FTC) has announced that to study the effectiveness of various class action settlement notice programs, it has issued orders to eight claims administrators requiring them to provide information on...more
As a result of Donald J. Trump’s election as President, coupled with the Democrats’ failure to wrest control of the House or Senate from the Republicans, the CFPB can be expected to undergo significant changes that are likely...more
11/10/2016
/ Administrative Proceedings ,
Arbitration ,
Automotive Loans ,
Banking Sector ,
Consumer Financial Protection Bureau (CFPB) ,
Dodd-Frank ,
Fair Lending ,
Payday Loans ,
PHH Corp. v CFPB ,
Popular ,
Presidential Nominations ,
Removal For-Cause ,
Richard Cordray ,
Single Director ,
Trump Administration
The Centers for Medicare and Medicaid Services (CMS), an agency within the U.S. Health and Human Services Department, recently issued a final rule prohibiting nursing homes and other long-term care facilities from utilizing...more
11/9/2016
/ Arbitration ,
Arbitration Agreements ,
Binding Arbitration ,
Centers for Medicare & Medicaid Services (CMS) ,
Contract Terms ,
Department of Health and Human Services (HHS) ,
Federal Arbitration Act ,
Health Care Providers ,
Healthcare ,
Long Term Care Facilities ,
Long-Term Care ,
Medicaid ,
Medicare ,
Nursing Homes ,
Skilled Nursing Facility
The Centers for Medicare and Medicaid Services (CMS), an agency within the U.S. Health and Human Services Department, has issued a final rule that includes prohibiting nursing homes and other long-term care facilities from...more
10/3/2016
/ Arbitration ,
Arbitration Agreements ,
Binding Arbitration ,
Centers for Medicare & Medicaid Services (CMS) ,
Contract Terms ,
Department of Health and Human Services (HHS) ,
Federal Arbitration Act ,
Health Care Providers ,
Healthcare ,
Long Term Care Facilities ,
Long-Term Care ,
Medicaid ,
Medicare ,
Nursing Homes ,
Preemption ,
Skilled Nursing Facility
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
9/16/2016
/ Arbitration ,
Arbitration Agreements ,
Class Action ,
Class Action Arbitration Waivers ,
Consumer Contracts ,
Consumer Financial Products ,
Consumer Financial Protection Bureau (CFPB) ,
Dodd-Frank ,
Financial Institutions ,
Financial Services Industry ,
Legislative Committees ,
Safe Harbors ,
Service Contracts
In an important decision underscoring the challenges faced by retailers and others in enforcing online arbitration agreements with their customers, the U.S. Court of Appeals for the Second Circuit has reversed a district...more
8/30/2016
/ Amazon Marketplace ,
Arbitration ,
Arbitration Agreements ,
Browsewrap Agreement ,
Class Action ,
Class Action Arbitration Waivers ,
Clickwrap Agreements ,
Corporate Counsel ,
E-Commerce ,
Internet Retailers ,
Retail Market ,
Terms and Conditions ,
Websites
The U.S. Court of Appeals for the Ninth Circuit announced this week that it agrees with the National Labor Relations Board that individual arbitration waiver agreements, which prevent employees from filing or participating in...more
8/26/2016
/ Appeals ,
Arbitration ,
Arbitration Agreements ,
Class Action ,
Class Action Arbitration Waivers ,
Collective Actions ,
Ernst & Young ,
Federal Arbitration Act ,
Mandatory Arbitration Clauses ,
NLRA ,
NLRB ,
Protected Concerted Activity ,
Section 7
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
8/23/2016
/ Arbitration ,
Arbitration Agreements ,
Class Action ,
Class Action Arbitration Waivers ,
Consumer Contracts ,
Consumer Financial Products ,
Consumer Financial Protection Bureau (CFPB) ,
Dodd-Frank ,
Financial Institutions ,
Financial Services Industry ,
Mandatory Arbitration Clauses ,
Service Contracts
The Pew Charitable Trusts has released an issue brief, “Consumers Want the Right to Resolve Bank Disputes in Court,” in which it urges the CFPB to “expeditiously finalize” its proposed arbitration rule. The CFPB’s proposal...more
8/19/2016
/ Arbitration ,
Arbitration Agreements ,
Banking Sector ,
Banks ,
Class Action ,
Class Action Arbitration Waivers ,
Consumer Contracts ,
Consumer Financial Products ,
Consumer Financial Protection Bureau (CFPB) ,
Consumer Lenders ,
Dodd-Frank ,
Financial Services Industry ,
Pew Foundation
Perhaps overshadowed in the raging battle over the Consumer Financial Protection Bureau's proposal to ban the use of class action waivers in consumer arbitration agreements involving consumer financial products or services is...more
8/10/2016
/ Arbitration ,
Arbitration Agreements ,
Clickwrap Agreements ,
Corporate Counsel ,
Mobile Apps ,
Motion to Compel ,
Privacy Policy ,
Registration ,
Sharing Economy ,
Terms of Service ,
Uber
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
8/5/2016
/ Arbitration ,
Arbitration Agreements ,
Class Action ,
Class Action Arbitration Waivers ,
Comment Period ,
Consumer Contracts ,
Consumer Financial Products ,
Consumer Financial Protection Bureau (CFPB) ,
Dodd-Frank ,
Financial Institutions ,
Financial Services Industry ,
Service Contracts