Prof. Cox Comments on Congressional Overturn of CFPB Arbitration Rule

Professor Prentiss Cox was quoted in a Star Tribune story on the 51050 Senate vote which completed the Congressional rescission of a rule passed by the Consumer Financial Protection Bureau limiting the use of class action bans in aribtration clauses. The CFPB rule would have prevented financial institutions from using boilerplate contracts that contained provisions prohibiting consumers from joining in a class action lawsuit. Cox commented that the Congressional action constitutes a “get of jail free” card for the financial services industry, as the amounts at issue when banks and other financial companies violate the law are rarely enough to justify hiring an attorney, thus making class actions the only viable option for consumer private rights of action to assert the claim. 

Cox also was quoted in a Quartz Magazine story on the arbitration rule.