The Ninth Circuit affirmed the district court’s denial of Rent-A-Center, Inc.’s motion to compel arbitration in a putative class action challenging the company’s structuring of its rent-to-own pricing. We discuss the court’s recent decision and how its preemption analysis means that the California Supreme Court’s ruling in McGill v. Citibank will continue to impact the enforceability of… Read More
Tag Archives: arbitration
CFPB Publishes Final Arbitration Rule in Federal Register
Posted in Arbitration, CFPB, Regulatory DevelopmentsA mere nine days after releasing its Final Rule regarding arbitration to the public, the CFPB has published the Final Rule in the Federal Register. This is significant because publication in the Federal Register triggers the countdown to the Final Rule’s effective date (60 days after publication) and ultimately its application to new agreements (180 days… Read More
The CFPB Issues Its Final Arbitration Rule
Posted in Arbitration, CFPB, Regulatory DevelopmentsEnding months of speculation and insider reading of tea leaves, on July 10, 2017, the CFPB issued a final rule regarding the use of arbitration agreements in specified consumer financial contracts (Final Rule). The Final Rule was published in the Federal Register on July 19, 2017. As was substantively expected, the Final Rule: 1) bars… Read More
Financial Services Report – Winter 2016
Posted in Arbitration, Auto Lending, CFPB, Credit Cards, Disparate Impact, Electronic Payments, Enforcement Actions, Fair Lending, Foreclosure, Military Issues, Mobile Payments, Mortgage, Payday Lending, Preemption, Privacy, Regulatory Developments, State Regulators, UDAAPHope you survived all of those awkward Thanksgiving holiday conversations—amazing how divided people are on whether the court got it right in the PHH case, isn’t it? So on we go into the holiday season, while visions of Dodd-Frank repeal dance in our heads. No long winter’s nap for the CFPB, not with the inauguration… Read More
Comment Clock on Proposed Arbitration Rule Is Ticking
Posted in Arbitration, CFPBThe CFPB’s proposed rule on arbitration agreements in consumer financial product and services contracts was published in the Federal Register today. That means the 90-day comment period has started to run. Interested entities will have until August 22, 2016 to submit comments to the CFPB. For more information about the proposed rule, see our client… Read More
The Time Has Come: The CFPB Issues its Proposed Arbitration Rule
Posted in Arbitration, CFPB, Regulatory DevelopmentsAs widely anticipated, the Consumer Financial Protection Bureau (CFPB) issued a Notice of Proposed Rulemaking seeking comments on proposed regulations that would: 1) bar class action waivers; and 2) impose reporting requirements for individual arbitrations pursued pursuant to pre-dispute arbitration agreements (“Proposed Rule”). The Proposed Rule is accompanied by over 350 pages of Supplementary Information… Read More
Time to Comment: The Proposed Arbitration Rule Has Arrived
Posted in Arbitration, CFPB, Regulatory DevelopmentsSurprising no one, the CFPB has announced a proposed rule that would effectively ban mandatory arbitration clauses in covered consumer financial services contracts. The rule continues to ignore the legislative and judicial findings embodied in the Federal Arbitration Act and the cases interpreting it, the well-documented abuses associated with class action litigation, and the methodological… Read More
CFPB’s Two-Year Policy Priorities
Posted in Arbitration, Auto Lending, CFPB, Mortgage, Student LendingOn Thursday, February 25, 2016, the CFPB held a Consumer Advisory Board meeting in which it outlined its forward-looking supervision and enforcement priorities. After the Board meeting, the CFPB published a summary of these priorities that promises the following, among other things, during the next two years: Rulemakings related to arbitration and debt collection; Rigorous… Read More
#ThrowbackThursday: Consumer Arbitration Update
Posted in Arbitration, State RegulatorsIn July 2005, Morrison & Foerster published the client alert “Consumer Arbitration Update.” Summary: A case decided by the California Supreme Court may have marked the end of the use of arbitration as a means of dispute resolution for companies that do business with consumers using standard form contracts. Now, a company that uses consumer… Read More
CFPB Publishes Semi-Annual Rulemaking Agenda
Posted in Arbitration, Auto Lending, CFPB, Credit Reports, Mortgage, Payday Lending, Regulatory Developments, Student LendingJust in time for the holidays, the CFPB released its Fall 2015 rulemaking agenda on Friday, November 20. The agenda does not include any major surprises, but it does slightly revise the projected timeline for several highly anticipated rulemaking activities. This alert lays out the highlights to consider between doses of turkey, football, and family…. Read More
WEBINAR: Consumer Protection Provisions in the Dodd-Frank Act: Adjusting to the New Paradigm
Posted in Arbitration, CFPB, Events, Mortgage, Regulatory Developments, UDAAPDecember 3, 2015 1:00 pm – 2:30 pm EST Morrison & Foerster partners Nancy Thomas and Angela Kleine will speak on the “Consumer Protection Provisions in the Dodd-Frank Act: Adjusting to the New Paradigm” Lorman webinar on December 3. Click here to register.
CFPB Announces Intent to Commence Arbitration Rulemaking
Posted in Arbitration, CFPB, Regulatory DevelopmentsOn October 7, the CFPB announced that it is considering two rulemaking proposals that would severely limit the use of pre-dispute arbitration clauses in consumer financial service contacts. Ignoring the well-documented problems and abuses associated with class action litigation, the Bureau has concluded that because class actions effect a greater aggregate transfer of wealth from… Read More
No Surprise Here—CFPB Proposes to Significantly Curtail Arbitration Agreements
Posted in Arbitration, CFPBToday, the CFPB announced its proposals regarding arbitration agreements in consumer financial product contracts. In a move that has plaintiffs’ class action lawyers cheering, the CFPB proposes to require litigation of class claims in court. The CFPB will not ban arbitration of individual actions—at least not yet. Instead, it proposes to require companies to submit… Read More
WEBINAR: The Other Shoe Has Dropped: CFPB Releases Report on Arbitration
Posted in Arbitration, CFPB, EventsWednesday, September 30, 2015 1:00 p.m. – 2:00 p.m. EDT Join Morrison & Foerster Partners James McGuire and Nancy Thomas as they speak on the Bloomberg BNA Webinar, “The Other Shoe Has Dropped: CFPB Releases Report on Arbitration.” Program Description: Over the summer, the CFPB released its long awaited Report to Congress on arbitration agreements… Read More
The Other Shoe Has Dropped: CFPB Releases Report on Arbitration
Posted in Arbitration, CFPBThe Consumer Financial Protection Bureau (CFPB) recently released its long awaited Report to Congress on arbitration agreements in consumer financial contracts. The Report’s conclusion, and Director Richard Cordray’s remarks, were as expected: consumers are better served by litigation—and particularly, class action litigation—than by agreements to arbitrate disputes. But after spending almost three years analyzing the… Read More
CFPB Announces Field Hearing on Arbitration
Posted in Arbitration, CFPBOn February 23, 2015, the Consumer Financial Protection Bureau (CFPB) announced that it will hold a field hearing in Newark, New Jersey, on March 10, 2015, to discuss the topic of arbitration. We anticipate that the CFPB will use the field hearing to announce the release of its report to Congress regarding the use of… Read More