Earlier this week, Judge Randolph D. Moss of the D.C. federal district court heard oral argument on the renewed motion for a preliminary injunction filed by the California Association of Private Postsecondary Schools (CAPPS) seeking to preliminary enjoin the arbitration ban and class action waiver provisions in the “borrower defense” final rule (Final Rule) issued
Arbitration
Consumer Advocates’ Proposed “Arbitration Multiplier” Is a Wolf in Sheep’s Clothing
By Mark J. Levin & Alan S. Kaplinsky on
According to a forthcoming article by Professors Andrea Chandrasekher and David Horton in the California Law Review, more consumers and their lawyers would take advantage of individual arbitration if states enacted non-waivable statutes allowing an arbitrator who awards a prevailing consumer fees and expenses under a fee-shifting statute to augment the award with an…
SEC consumer advocates launch misguided preemptive attack on arbitration clauses
By Alan S. Kaplinsky & Mark J. Levin on
Having lost the battle to prohibit class action waivers in consumer arbitration agreements, consumer advocates have embarked on a new crusade. Their new crusade is a misguided attempt to persuade the Securities and Exchange Commission (SEC) not to approve initial public offerings by companies whose corporate charters or bylaws require individual arbitration of shareholder disputes.…
State of Washington Executive Order May Be Preempted by FAA
By Alan S. Kaplinsky & Mark J. Levin on
An Executive Order issued by Washington Governor Jay Inslee on June 12, 2018 seeks to rebuff the U.S. Supreme Court’s ruling in Epic Systems LLC v. Lewis, 138 S. Ct. 1612 (May 21, 2018), by implementing new state procurement procedures that overtly discriminate against companies whose employment agreements contain arbitration provisions with class action…
NY bars use of mandatory arbitration agreements by career training schools
By John L. Culhane, Jr. on
The New York Education Department (NYED) has issued a ruling which states that the Bureau of Proprietary School Supervision (BPSS) will not permit an enrollment agreement, including an arbitration clause, to infringe on the Commissioner of Education’s or the NYED’s jurisdiction “to investigate schools and issue findings (whether or not a complaint is filed), to…
Dept. of Education proposes disclosure of pre-dispute arbitration agreements by schools receiving Title IV aid for student borrowers
By John L. Culhane, Jr. on
The Department of Education, in an issue paper submitted as part of negotiated rulemaking on its final “borrower defense” rule, is proposing to require schools that use pre-dispute arbitration agreements and class action waivers in agreements with students to provide disclosures to students regarding their use of such agreements and waivers.
The ED’s proposed approach…
CFPB to Remove Arbitration Rule from CFR
By Alan S. Kaplinsky & Mark J. Levin on
Posted in Arbitration, CFPB Monitor
The CFPB is scheduled to publish a notice in tomorrow’s Federal Register removing the agency’s final arbitration rule from the Code of Federal Regulations (CFR). The rule was originally published in the Federal Register on July 19, 2017. However, Congress disapproved the rule under the Congressional Review Act on October 24, 2017, and President…
CFPB Finally Acknowledges Arbitration Rule “Has No Force or Effect”
By Alan S. Kaplinsky & Mark J. Levin on
Posted in Arbitration, CFPB Monitor
Two weeks after President Trump signed H.J. Res. 111, the joint resolution passed by the House and Senate disapproving the CFPB arbitration rule, the CFPB has formally acknowledged Congress’ override of the rule under the Congressional Review Act. The following notice is now posted at the head of the section of the CFPB’s website dealing…
CFPB issues fifth Financial Literacy Annual Report
By Barbara S. Mishkin on
The CFPB has issued its fifth Financial Literacy Annual Report to Congress. The report describes the CFPB’s ongoing financial literacy work, “with an emphasis on work during October 2016 through September 2017.” It covers the CFPB’s financial literacy strategy, its financial education initiatives generally and those specifically targeted at students and young adults, servicemembers, economically…
Director Cordray criticizes CRA override of CFPB arbitration rule
By Alan S. Kaplinsky & Mark J. Levin on
Posted in Arbitration, CFPB Monitor
In a blog post last week, we noted that there had been no official statement from the CFPB about Congress’ override of the CFPB’s arbitration rule, which President Trump signed on November 1.
Since publishing our blog post, we learned that Director Cordray had issued a statement on November 1 in which he criticized…