SAN FRANCISCO — New regulations proposed Wednesday by the Consumer Financial Protection Bureau would be a major win for plaintiffs lawyers in their on-going fight against arbitration.
During a Denver hearing, the CFPB announced its intention to prohibit financial institutions, including banks, credit card companies and lenders, from forcing class actions into arbitration. Implementation is a long way off—the proposal is preliminary and the CFPB is soliciting recommendations from the business community before drafting a final version. But the news has heartened consumer plaintiffs attorneys who have seen their business dwindle as more companies use arbitration clauses to pre-empt class actions.
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