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TILA Prohibition on Mandatory Arbitration Provisions in Mortgage Agreements Takes Effect June 1, 2013

The Consumer Financial Protection Bureau has enacted a new rule that will prohibit the inclusion of mandatory arbitration provisions and waivers of federal statutory causes of action in consumer mortgage and home equity loan...more

Florida Supreme Court Makes Clear That Concepcion Is Valid And Binding In Florida

In light of the Florida Supreme Court’s recent ruling in McKenzie Check Advance of Florida, LLC v. Betts, 38 Fla. L. Weekly S223, 2013 WL 1457843 (Fla. April 11, 2013), it is now clear that Concepcion applies to class action...more

DOJ Message To SCOTUS: Do Not Enforce Arbitration Agreements That Invalidate Federal Statutory Rights

On January 29, the U.S. Dept. of Justice filed an amicus brief supporting respondents in AmEx III, arguing that to enforce the class arbitration waiver would be to create a large loophole for important federal laws. The...more

Arbitration Clauses Are Enforceable Despite Waiver Of Classwide Arbitration Rights

Israel Flores and Andrea Naasz sued West Covina Toyota (WCT) and Toyota Motor Sales for selling them a “lemon,” alleging both individual and class action claims, including claims for violations of the Consumer Legal Remedies...more

Some Class-Action Waiver Clauses Continue to be Held Unenforceable, Even After Concepcion

In a decision dated January 7, 2013, the California Court of Appeal invalidated a mandatory arbitration and class action waiver clause in an automobile sales contract, ruling that the arbitration clause was unconscionable and...more

CFPB issues final rules on incentives and mandatory arbitration

The CFPB issued final rules reducing the financial incentives for loan officers and brokers in "risky and high-cost" consumer loans and toughening qualification standards for loan originators....more

CFPB semiannual regulatory agenda: missing items and other mysteries

The CFPB has issued its semiannual regulatory agenda which identifies seven regulatory matters that the CFPB “reasonably anticipates” having under consideration during the period from October 1, 2012 to October 1, 2013....more

Financial Services Report -- Winter 2012

In This Issue: Bureau Report; Operations Report; Beltway Report; Arbitration Report; Mortgage Report; Privacy Report; Preemption Report; and Plastics Report. Excerpt from the Bureau Report: World’s Most...more

FTC Announces Investigations of Kids App Providers and California’s AG Sues Delta over Fly Delta App’s Privacy Practices

Two recent developments should have all app providers reviewing their privacy practices and policies. On Monday, December 10, the Federal Trade Commission released its latest report on privacy disclosures and kids apps....more

Supreme Court to Address Enforceability of Arbitration Agreements and Class Action Waivers Yet Again

On Friday, November 9, 2012, the Supreme Court granted certiorari in American Express Company vs. Italian Colors Restaurant, No. 12-133 to address the following question: “Whether the Federal Arbitration Act permits courts,...more

Supreme Court Passes on Appeals of Overdraft Litigation Decisions

On October 9, the U.S. Supreme Court denied the petitions for writ of certiorari filed by plaintiffs in two cases challenging the overdraft billing practices of certain banks. Hough v. Regions Financial Corp., No. 12-1139,...more

Consumer Advocates Form "Anti-Arbitration" Organization

A group of consumer advocates have formed a nonprofit organization that seeks through mass arbitration to undermine the effect of the U.S. Supreme Court's landmark decision in AT&T Mobility LLC v. Concepcion. In that...more

Romney, Obama, Consumer Law & the Supreme Court

Voters can gain some wisdom as to how President Barack Obama’s second term or Mitt Romney’s first could affect consumer law by looking at what type of U.S. Supreme Court justice each would appoint to any upcoming...more

In Clickwrap Data Pass Contract Dispute. Second Circuit Sacks E-mail Notice of Post-Transaction Terms

In an important opinion on the enforceability of online contract terms, Senior Circuit Judge Robert D. Sacks walks through the last decade and a half of online contracting law on the way to invalidating an arbitration...more

Second Circuit Holds Email Notice of Arbitration Agreement Insufficient

On September 7, the U.S. Court of Appeals for the Second Circuit held that three plaintiff consumers were not bound to arbitrate certain claims related to their purchase of a discount club membership because email notice of...more

Ninth Circuit Panel Withdraws Opinion Holding That Magnuson-Moss Warranty Act Prohibits Mandatory Arbitration Clauses in Consumer...

California is a difficult jurisdiction for sellers of consumer products, due in part to the pro-consumer Song-Beverly Consumer Warranty Act, which expands the consumer rights codified in the federal Magnuson-Moss Warranty Act...more

CFPB Seeks Input on Study of Mandatory Arbitration Clauses

The Consumer Financial Protection Bureau (CFPB) has launched the preliminary stage of its study into the use of mandatory arbitration clauses by issuing a Request for Information to the public asking for suggestions about how...more

Some views from the other side

We think two posts by Deepak Gupta that recently appeared on the Consumer Law & Policy Blog make for interesting reading. Last July, on our blog, we wrote about how the hiring of Mr. Gupta by the CFPB’s Office of General...more

CFPB Investigates Benefit of Arbitration Agreements

The Consumer Financial Protection Bureau (“CFPB” or “Bureau) has started a process that could lead to the eventual unraveling of recent Supreme Court decisions that have upheld consumer arbitration in class-action lawsuits...more

Supreme Court Upholds Mandatory Pre-dispute Arbitration Clause in Credit Card Agreements

This article by Victoria Holstein-Childress discusses mandatory pre-dispute arbitration clauses in consumer financial services contracts and the Supreme Court's January 2012 decision in Compucredit v. Greenwood. In...more

Exploring Consumer Arbitration Provisions after CompuCredit v. Greenwood

In this presentation; - Introduction - How we got here… - Credit Repair Organizations Act - CompuCredit v. Greenwood and AT&T Mobility v. Concepcion - Looking to the Horizon – What’s next? -...more

Supreme Court Rings in New Year with Another Ruling in Favor of Arbitration

Compucredit Corp. v. Greenwood, decided January 10, 2012 is the latest in a series of U.S. Supreme Court opinions that have come down firmly on the side of the enforceability of consumer arbitration agreements. Lining up 8-1...more

Scott v Terminix International

Arbitration Award for $1,000,000 plus costs

Terminix was taken to task for intentionally defrauding a lawyer and his family. Terminix knew it could not and would not prevent termite damage in the family's home. When the family insisted that Terminix repair all of the...more

Sargeant v Terminix International

Arbitrator's Award

Terminix lied to an ordained pastor and his wife about the condition of a Newport Arkansas home they bought. Terminix said all damage in the house was repaired. In truth, it needed to be torn down. The managers responsible...more

Class Action Waivers in Commercial Agreements: Comparing Their Treatment in the US and Canada by Jennifer Dolman and Matt Thompson

This article first appeared in the December 2011 issue of LJN’s Franchising Business & Law Alert. It discusses the treatment of class action waivers in commercial agreements (including franchise agreements) in the US...more