Federal Register: CFPB Adopts Rule Restricting Mandatory Arbitration Clauses in Consumer Financial Contracts

The Consumer Financial Protection Bureau ("CFPB") issued a final rule that restricts mandatory arbitration clauses in certain consumer financial contracts (see previous coverage). The final rule was published in the Federal Register on July 19, 2017.

The final rule will become effective on September 18, 2017. Starting on March 19, 2018, all pre-dispute arbitration agreements must be made in compliance with the rule.