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Examining the Data Behind the CFPB’s Arbitration Rule

On July 10, 2017, the Consumer Financial Protection Bureau issued a Final Rule in which it prohibited individual arbitration agreements between financial services companies and consumers that have disputes with one another. The Rule corroborated a detailed analysis of the costs, types, and impacts of class action lawsuits and individual arbitration procedures that the Bureau conducted in 2015. The primary goal of this mandate, which went into effect on September 18, was to encourage large groups of consumers to take companies to court if they feel they have a dispute. Consumers' Research conducted aa analysis of some of the data and methods in the report, as well as the differences between arbitration and class action suits.

Project Description

On July 10, 2017, the Consumer Financial Protection Bureau issued a Final Rule in which it prohibited individual arbitration agreements between financial services companies and consumers that have disputes with one another. The Rule corroborated a detailed analysis of the costs, types, and impacts of class action lawsuits and individual arbitration procedures that the Bureau conducted in 2015. The primary goal of this mandate, which went into effect on September 18, was to encourage large groups of consumers to take companies to court if they feel they have a dispute. Consumers’ Research conducted aa analysis of some of the data and methods in the report, as well as the differences between arbitration and class action suits.