CFPB Director Richard Cordray Addresses Consumer Advisory Board

Thursday, 22 October, the Consumer Advisory Board met to discuss arbitration, trends, and themes in the marketplace — as well as challenges in reaching limited English speaking consumers.

Arbitration, however, formed the bulk of the remarks Cordray made to the CAB. Recently, Director Cordray made it clear that the CFPB sees mandatory arbitration clauses as anti-consumer. And, as insideARM reported in early October, it seems likely that the CFPB is going to use their rulemaking to drastically reduce the use of mandatory arbitration provisions in consumer contracts subject to CFPB supervision.

In addressing the CAB, Cordray underlined this new direction for the CFPB: “Companies use [arbitration clauses]…to block class action lawsuits, providing themselves with a free pass from being held accountable by their customers in the courts.”