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CFPB Publishes Final Rule on Pre-Dispute Arbitration Agreements

Earlier this week, the Consumer Financial Protection Bureau published a final rule substantially curtailing the ability of financial services providers and consumers to enter into voluntary pre-dispute arbitration clauses.  The final rule, like the proposed rule that preceded it, would i) prevent financial services providers from including arbitration clauses in consumer contracts unless those arbitration clauses expressly permit class actions to proceed in court; and ii) require financial services providers to provide copies of consumer arbitration agreements, claims and decisions to the Bureau for possible publication.  The final rule will become effective 60 days after its publication in the Federal Register, but apply only 180 days after its effective date.

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 Eric J. Mogilnicki, Financial Institutions Attorney, Covington Burling, Law Firm
Partner

Combining his four years’ experience at the center of some of the nation’s most critical public policy debates as Chief of Staff to the late Senator Edward M. Kennedy, and his more than 20 years of experience advising and representing financial institutions, Eric Mogilnicki focuses his practice on assisting clients with Consumer Financial Protection Bureau (CFPB) investigations, examinations and enforcement actions. Mr. Mogilnicki served in the Senate when the Bureau was designed, and has been a national leader within the private bar on CFPB issues since the Bureau first...

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Andrew M. Smith, Covington Burling, Technology Privacy Matters Lawyer, Cybersecurity Litigation Attorney
Partner

Andrew Smith advises clients on retail financial services, credit reporting, privacy, technology and e-commerce issues. He assists banks, non-bank lenders, credit bureaus, technology companies, and their vendors with regulatory compliance, litigation and transactional matters.

Mr. Smith represents clients before federal and state agencies—particularly the Federal Trade Commission (FTC) and Consumer Financial Protection Bureau (CFPB)—in law enforcement and rulemaking proceedings. He regularly advises companies on the requirements of the GLBA, FCRA, DPPA, ECOA, FDCPA, TCPA and TSR, FTC Act, Dodd-Frank Act, and analogous state laws, including state insurance privacy laws and security breach notification requirements

202 662 5049
David A. Stein, Covinton Burling, credit reporting attorney, retail payments systems lawyer
Of Counsel

David Stein advises clients on regulatory and compliance matters relating to consumer protection and consumer financial services, with a particular expertise in the federal regulatory framework governing credit reporting, privacy, retail payments systems, consumer credit, fair lending, unfair, deceptive, or abusive acts or practices, deposit accounts, and mortgage origination and servicing.

Drawing upon his combined 13 years of regulatory experience at the Consumer Financial Protection Bureau and the Federal Reserve Board, Mr. Stein has helped...

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