This story appeared in Bank Digest.
The Consumer Financial Protection Bureau has issued a small entity compliance guide for its Arbitration Agreements Rule, which was issued in July 2017 and governs agreements providing for arbitration of future disputes between consumers and providers of specified covered consumer financial products and services. The rule prohibits providers from relying on pre-dispute arbitration agreements to block class actions concerning consumer financial products and services covered by the rule.
The rule was effective Sept. 18, 2017, and compliance with the rule is required with regard to pre-dispute arbitration agreements entered into on or after March 19, 2018. According to the CFPB, the purpose of the guide is to provide an easy-to-use summary of the Arbitration Agreements Rule and to highlight information that may be helpful when implementing the rule.