Pursuant to section 1028(b) of the Dodd-Frank Wall Street Reform and
Consumer Protection Act (Public Law 111-203), the Bureau of Consumer Financial
Protection (Bureau) is proposing to establish 12 CFR part 1040, which would
contain regulations governing two aspects of consumer finance dispute resolution.
First, the proposed rule would prohibit covered providers of certain consumer
financial products and services from using an agreement with a consumer that
provides for arbitration of any future dispute between the parties to bar the consumer
from filing or participating in a class action with respect to the covered
consumer financial product or service. Second, the proposal would require a
covered provider that is involved in an arbitration pursuant to a pre-dispute
arbitration agreement to submit specified arbitral records to the Bureau. The
Bureau proposes that the rule would apply to certain consumer financial
products and services. The Bureau is also proposing to adopt official interpretations
to the proposed regulation.