by Chip Zyvoloski, Senior Attorney, Wolters Kluwer
This article originally appeared in the July/August issues of the NIADA State Magazines.
By now, you’ve read about the Consumer Financial Protection Bureau’s (CFPB) proposed new rules affecting consumer arbitration agreements. Headlights shine on its proposal to prohibit consumer arbitration clauses from blocking consumers’ ability to join class action lawsuits. A lot has already been written about that point. But there are a few details that will help round out your understanding of the proposal. So let’s look under the hood at the proposed rule and how it might affect you if it becomes final.
The CFPB’s proposed rule is receiving a lot of attention in the auto finance marketplace. Most attention is on the proposal that dealers can’t use an arbitration agreement to prohibit consumers from joining a class action lawsuit. Much will continue to be written about that specific item. But remember that the other details will help determine whether the engine of consumer arbitration agreements will continue to run or end up on the scrap heap.
Chip Zyvoloski is a senior attorney for Indirect Lending at Wolters Kluwer. For more information, please visit www.wolterskluwerfs.com/indirect.