Sternlight: Musings from the CFPB Field Hearing
This post has been viewed 2,140 times.
This dispatch comes from frequent guest blogger Jean Sternlight (UNLV).
I am writing this blog having just returned from Denver, where I participated in the Consumer Financial Protection Board Field Hearing discussed yesterday at Indisputably by Professor Sarah Cole. As Sarah noted, the CFPB is proposing to prevent companies from using mandatory arbitration to prevent financial consumers from participating in class actions or group claims. The CFPB is also proposing to require companies to send it documentation on consumer financial claims in which arbitration is initiated, so that the CFPB and perhaps the public can monitor how these claims are processed. I was fortunate to be one of six panelists invited to speak on the tentative proposals.
I write to add just a few points to Sarah’s excellent post:
(1) As a practical matter, the CFPB is not quite yet to the point of proposing the new regulation. Rather, before the CFPB can commence the actual rulemaking process it must first get through a review process designed to ascertain how the rule might impact small business. I think the tentative rule will make it through this process, but it is not guaranteed.
Read original articleTags:
