The Consumer Financial Protection Bureau has announced that it will be holding a field hearing on arbitration in Denver, Colorado on Wednesday, October 7 at 11:00 a.m. MDT.
The CFPB’s March 10, 2015 Consumer Arbitration Study has come under scrutiny from the financial services industry. Many believe the CFPB has already concluded that there are serious problems with pre-dispute arbitration clauses in credit card, bank account, and other consumer finance contracts, which will lead the CFPB to prohibit the use of mandatory consumer arbitration agreements.
This field hearing is likely to provide important insight into the CFPB’s timetable for making a decision on whether to prohibit, limit, or condition the use of arbitration provisions in consumer financial services agreements. According to the CFPB’s announcement, Director Richard Cordray will make remarks, and the hearing will also include testimony from consumer groups, industry representatives, and members of the public.
This event is open to the public but requires an RSVP, which can be done by sending an email to firstname.lastname@example.org.
Troutman Sanders LLP has extensive experience in drafting and enforcing arbitration agreements in the financial services industry and will continue to monitor CFPB activity in this regard.