In the May 24, 2016, issue of the Federal Register (81 FR 32830, click here), the CFPB published a proposed rule to govern pre-dispute arbitrations agreements in consumer finance transactions that will be confided in new 12 CFR part 1040 when made final. First, the proposed rule would prohibit covered providers of certain consumer financial products and services from using an agreement with a consumer that provides for arbitration of any future dispute between the parties to bar the consumer from filing or participating in a class action with respect to the covered consumer financial product or service. Second, the proposal would require a covered provider that is involved in arbitration pursuant to a pre-dispute arbitration agreement to submit specified arbitral records to the CFPB. The CFPB is also proposing to adopt official interpretations to the proposed rule. The text of the proposed rule and official interpretations are found on pages 32924 through 32929 of the above cited Federal Register. The CFPB is requesting comments on the proposed rule, which must be received by the CFPB not later than August 22, 2016. In order to comment, you must submit comments, identified by Docket No. CFPB-2016-0020 or RIN 3170-AA51, by any of the following methods: • Email: FederalRegisterComments@cfpb.gov. Include Docket No. CFPB-2016-0020 or RIN 3170-AA51 in the subject line of the email. • Electronic: http://www.regulations.gov. Follow the instructions for submitting comments. • Mail: Monica Jackson, Office of the Executive Secretary, Consumer Financial Protection Bureau, 1700 G Street NW., Washington, DC 20552. • Hand Delivery/Courier: Monica Jackson, Office of the Executive Secretary, Consumer Financial Protection Bureau, 1275 First Street NE., Washington, DC 20002.
