Consumer Financing Pre-Dispute Mandatory Arbitration: Consumer Financial Protection Bureau (CFPB) Developments

Louis Del Duca, Edward N. Polisher Distinguished Faculty Scholar Emeritus and Director, Institute of Commercial Law at the Penn State Dickinson School of Law, has published Consumer Financing Pre-Dispute Mandatory Arbitration: Consumer Financial Protection Bureau (CFPB) Developments, Uniform Commercial Code Law Journal, Vol. 46, p. 71, 2014. In his article, Professor Del Duca discusses some of the possible implications raised by the Consumer Financial Protection Bureau’s recent findings on the use of mandatory pre-dispute arbitration agreements in business to consumer contracts.

Here is the abstract:

Judicial precedent with regards to mandatory pre-dispute arbitration agreements has given such clauses substantial protection, resulting in their widespread inclusion in boilerplate contract language. However, recent findings and assertions from the Consumer Financial Protection Bureau (CFPB) may cause a serious disruption in the use of such clauses in business to consumer (B to C) contracts. Recent CFPB studies and comments suggest that the CFPB is poised to exercise its authorization under the Dodd-Frank Act to restrict the use of pre-dispute mandatory arbitration agreements in consumer contracts.

This and other scholarly papers written by Professor Del Duca may be downloaded free of charge from the Social Science Research Network.

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