Time for a CFPB politics update: FSOC veto, Congressional Review Act override of the arbitration rulemaking, Director succession line, and contempt of Congress all discussed below the break.
Today the CFPB finalized the most important rulemaking it has undertaken to date. This rulemaking substantially restricts consumer financial service providers' ability to prevent consumer class actions by forcing consumers into individual arbitrations. I believe this is by far the most important rulemaking undertaken by the CFPB because it affects practices across the consumer finance space (other than mortgages, where arbitration clauses are already prohibited by statute).
Today, the U.S. Supreme Court decided Kindred Nursing v Clark, an arbitration case in which the Kentucky Supreme Court declined to enforce arbitration agreements between a nursing home and two patients.
I've been meaning to post about this recent decision, by Judge Rakoff in the Southern District of New York, denying motions by Uber and its CEO Travis Kalanick to compel arbitration of a class action lawsuit.
As has been expected for some time, the Consumer Financial Protection Bureau has issued a proposed rule that would prohibit companies providing consumer financial services from
Earlier I posted about DIRECTV v. Imburgia. To recap the issue: DIRECTV's contract with subscribers (i) required arbitration, (ii) forbade class actions, and (iii) provided for litigation in court if "the law of [the subscriber's] state" refused to enforce the class action waiver. California law refuses to enforce class action waivers in some circumstances, but this law is preempted by the Federal Arbitration Act.
