Walter Zalenski Quoted in American Banker Article, "CFPB's Arbitration Plan Delivers Sharp Blow to Financial Industry"
May 5, 2016
Walter Zalenski was quoted in Kate Berry's American Banker article, "CFPB's Arbitration Plan Delivers Sharp Blow to Financial Industry," on May 5, 2016.
In a major setback for banks, credit unions, credit card companies and many other financial firms, the Consumer Financial Protection Bureau is set Thursday to issue a proposal that would ban the use of arbitration clauses that prevent consumers from bringing class-action lawsuits.
The 377-page proposal, released to the media a day early, would still allow companies to offer arbitration as a way to resolve disputes, but it could no longer make it mandatory. Clauses would have to explicitly state that consumers cannot be stopped from taking part in a class-action lawsuit.
As part of its proposal, the bureau would provide specific language that companies must use in communications with consumers.
"Under the CFPB's proposal, that shield would no longer be available," said Walter Zalenski, a partner at the law firm BuckleySandler.