Walter Zalenski Quoted in Bloomberg BNA Article, "CFPB Proposes Mandatory Arbitration Clause Rule"
May 5, 2016
Walter Zalenski was quoted in Jeff Bater's Bloomberg BNA article, "CFPB Proposes Mandatory Arbitration Clause Rule," on May 5, 2016.
Banks and other financial companies could no longer use mandatory arbitration clauses to prevent class-action lawsuits under a proposed rule released May 5 by the Consumer Financial Protection Bureau (CFPB).
Business groups immediately criticized the proposal as a “gift” to plaintiffs’ lawyers they say could result in an explosion in litigation. The long-awaited plan was expected by the industry following years of study by the bureau, which is giving stakeholders 90 days to comment on the proposal.
Walter Zalenski, a partner at BuckleySandler, said in an e-mailed comment that over time, the possibility of a new litigation explosion is real if a CFPB class-action waiver ban is adopted.
“Consider the fact that, during the late 1970s, more than 2,000 Truth in Lending cases were filed in the federal courts each year,” Zalenski said. “Since then, the consumer financial services market has expanded dramatically, and so too has the regulatory burden of consumer financial protection laws.”