In Zambrana v. Pressler & Pessler LLP, the Southern District Court of New York stayed a putative class action against various creditors for alleged violations of the Fair Debt Collection Practices Act (FDCPA), referring the matter to arbitration.
What You Need to Know about CFPB’s Proposal to Ban Mandatory Arbitration Clauses in Financial Contracts
On May 5, 2016, the Consumer Financial Protection Bureau (the “CFPB”) published in the Federal Register its 376-page proposed rule to limit the use of mandatory arbitration clauses in certain financial contracts.
Are contractual arbitration clauses harmful to consumers of financial products and services? The CFPB appears to think so. But is the CFPB’s view empirically or legally well-founded?