U.S. Consumer Agency Faces Heat on Financial Arbitration Rules | White & Case LLP International Law Firm, Global Law Practice
U.S. Consumer Agency Faces Heat on Financial Arbitration Rules

U.S. Consumer Agency Faces Heat on Financial Arbitration Rules

The Consumer Financial Protection Bureau's proposal to ban forced arbitration clauses from financial contracts faces a tough road, Reuters reported. The agency is being flooded with comments on its proposal, which aims to block companies from forcing customers to take disputes to arbitration instead of joining group lawsuits.

"If you see a final rule that is substantially similar or identical to the proposed rule there is a very high likelihood that there will be an industry challenge," that could go all the way to the Supreme Court, said White & Case partner Ben Saul.