Media Alert: Akin Gump Lawyers Available to Comment on Publication of CFPB Arbitration Rule
(New York and Los Angeles) – On July 10, 2017, the Consumer Financial Protection Bureau (CFPB) issued a new rule prohibiting banks and credit card companies from including class action waivers in their arbitration agreements with consumers. Without such waivers, consumers are able to consolidate their cases into class actions, provided that they are able to meet other legal requirements for filing class actions. Earlier today, the CFPB announced that it would publish this rule in the Federal Register on Wednesday, July 19.
Neal Marder, head of Akin Gump’s litigation practice in Los Angeles, and Robert Pees, a partner in its litigation practice in New York who focuses on representing financial services firms, are available today to offer comment and perspective on this development and the rule itself.
“The big question that Congress must address is: Does the new rule really benefit consumers, or is it merely a boon for class action lawyers?,” stated Mr. Pees.
In an alert published by the firm last week, Mr. Pees and Mr. Marder note that the new rule has received widespread criticism, with opponents arguing that the rule is anti-consumer and anti-business and that it promotes frivolous litigation. They note that Congress can—and likely will—take action to nullify the new rule before it goes into effect next year, and that, even if it does not, substantial political and legal challenges threaten to undercut the power of the CFPB.
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