• CFPB Arbitration Rule - Correction to Effective Date
  • October 4, 2017 | Authors: Lawrence D. Coppel; Marjorie A. Corwin; Edward J. Levin
  • Law Firm: Gordon Feinblatt LLC - Baltimore Office
  • We wrote in our August 2017 Maryland Legal Alert about the final arbitration rule released by the Consumer Financial Protection Bureau (CFPB). The final rule takes effect on September 18, 2017, but will only apply to consumer arbitration agreements entered into (and new products/services obtained) on and after March 19, 2018. Unless implementation of the final rule is blocked, financial institutions and other covered businesses that currently include an arbitration agreement in their consumer agreements will need to evaluate whether they want to continue to use arbitration as the default dispute resolution method without the ability to cut off class action lawsuits and, if so, will need to adjust the terms of their agreements to comply with the rule and include required disclosures.