Here (behind paywall, unfortunately). Excerpt: When the CFPB may [issue its arbitration rule] is unknown. A spokesman told Bloomberg BNA that the bureau continues to gather information from stakeholders on the arbitration rulemaking. A final regulation is unlikely to take effect before late 2017 or 2018, Joe Olson, a partner and class action defense specialist with Michael […]
Category Archives: Consumer Financial Protection Bureau
Not so much, according to this story in the Boston Herald. Excerpt: [Apparently [buyers are] not [using the disclosures] so much. Bill Emerson, chief executive of Quicken Loans, the country’s second highest volume mortgage lender, says his firm is seeing no surge in shopping by applicants using the Loan Estimate. “I don’t think consumers are changing […]
by Jeff Sovern Bear with me for a moment. As is well-known, Richard H. Thaler and Cass R. Sunstein,in their important book Nudge, describe how classical microeconomics assumes that all people are rational. They call such rational people "Homo Economicus" or, for short, "Econs." But, as they also describe, and as Thaler elaborates on in his […]
The late Jean Braucher of Arizona and Angela K. Littwin of Texas have written Examination as a Method of Consumer Protection, 87 Temple Law Review, 807 (2015). Here is the abstract: Lack of compliance with consumer protection law has been a crucial problem in the field for as long as such law has existed. The Consumer […]
by Jeff Sovern In a recent American Banker essay, I argued that businesses praise arbitration not because they genuinely value it, but because it enables them to block class actions. I said that for two reasons: first, that if businesses truly believe arbitration is superior to litigation, as they say they do, they should prefer […]
Here. Excerpts: [T]he U.S. Chamber of Commerce, the most powerful business lobby in the country, started a new effort to block the Consumer Financial Protection Bureau by lobbying lawmakers to attach a rider to the federal budget bill that would force the regulator to conduct a new study before issuing any rule, according to people […]
by Jeff Sovern Here. Excerpt: [C]ompanies can use class action waivers to block consumer protection laws unless consumer protection laws find a way to block class action waivers. * * * Last month, the bureau made public a proposal to block class action waivers in arbitration clauses. A leading advocate for arbitration in the financial […]
Allison posted yesterday about the anti-CFPB ad. The American Banker's Rachel Witkowski and Rob Blackwell have more here. Among their reasons for saying it could backfire: "the ad is over the top;" "Consumer credit isn't tighter since the CFPB's creation;" and "The ad's sponsor has connections to a company under investigation by the CFPB."