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CFPB Submits Report on Arbitration Study to Congress (with Lofchie Comment)

Pursuant to Section 1028(a) of Dodd-Frank, the Consumer Financial Protection Bureau ("CFPB") submitted a report to Congress regarding "the use of agreements providing for arbitration of any future dispute . . . in connection with the offering or providing of consumer financial products or services."

According to the CFPB, the study is empirical rather than evaluative and covers a wide range of topics. Its purpose is to contextualize the facts surrounding the resolution of consumer financial disputes.

North American Securities Administrators Association ("NASAA") President William Beatty issued a statement regarding the study in which he said that NASAA hopes the findings will encourage the SEC "to investigate the impact of similar clauses used by broker dealers and investment advisers, and prohibit or restrict their use 'in the public interest and for the protection of investors.'"

Lofchie Comment: The study does not deal with the use of arbitration in the securities industry.

See: CFPB Study.
See also: NASAA Statement.