Is the CFPB’s Proposed Arbitration Ban Legal?

National Mortgage Professional, Oct. 12, 2015–Hall, Phil

Last week, the Consumer Financial Protection Bureau announced that it was considering the introduction of a new regulation banning the so-called “free pass” arbitration clauses that prevent consumers from filing lawsuits in groups to obtain relief against financial services companies. But does the CFPB have the legal authority to overturn Supreme Court rulings related to arbitration? The answer, according to industry experts, depends on how you view the CFPB’s actions.