The Consumer Financial Protection Bureau on Friday released a small entity compliance guide on the bureau’s final rule drastically constricting the use of mandatory arbitration agreements in consumer financial contracts. The rule went into effect today, and compliance is required on or after March 19, 2018. The compliance guide explains who is covered by the rule, required language in revised pre-dispute arbitration agreements, submission of records and other topics.
The American Bankers Association strongly opposed the rule, noting that it is written to favor the interests of class action trial attorneys over consumers themselves. ABA also supports ongoing efforts in the Senate to pass a resolution disapproving of the rule under the Congressional Review Act. The House passed a disapproval resolution in July.
If the Senate passes this measure in the coming weeks and — as expected — President Trump signs it, the final rule will be voided and compliance will not be required. In addition to supporting the congressional process, ABA is looking at every option to prevent the rule from coming into force in its current form.