CFPB Arbitration Proposal Means More Lawsuits

Five Things to Watch in CFPB's Arbitration Proposal
– American Banker

American Banker quoted Richard Gottlieb, a partner in the firm’s Financial Services Litigation practice, about the Consumer Financial Protection Bureau’s new arbitration proposal. The proposal will limit the use of arbitration clauses in millions of financial contracts, including those in the auto finance industry.

"Over the years, the auto finance industry and auto dealers have benefited substantially from the widespread use of arbitration provisions with class-action waivers," said Gottlieb. "Prohibiting these provisions will greatly increase the number of individual and class-action suits arising out of auto consumer finance transactions because auto finance companies will no longer be able to purchase contracts containing those provisions."

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