Home / Expert Opinion / Trials and Tribulations: Ban of mandatory arbitration clauses opens door to class action lawsuits

Trials and Tribulations: Ban of mandatory arbitration clauses opens door to class action lawsuits

On July 10, 2017, the Consumer Financial Protection Bureau (CFPB) passed a rule banning mandatory arbitration clauses in consumer banking and lending contracts. These arbitration provisions, also known as class action waivers, have the effect of preventing consumers from filing class action lawsuits against credit card companies and banks. Once the regulations become effective, consumers ...

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