On September 15, the CFPB published a small entity compliance guide concerning the Bureau’s final arbitration rule that became effective this month. Compliance is required for “pre-dispute arbitration agreements” entered into on or after March 19, 2018. This guide provides a summary of the rule and highlights the parties and consumer financial products and services covered by the rule, as well as exclusions from the rule’s requirements. In addition, the guide includes descriptions of provisions to be included in pre-dispute arbitration agreements, clarifies the rule’s prohibition on relying on pre-dispute arbitration agreements to block class actions, and explains the record submission requirements under the rule.
However, as previously discussed in InfoBytes, while the arbitration rule went into effect September 18, the House earlier passed a disapproval resolution, in July, to repeal the rule, with a similar measure set for discussion in the Senate.