CFPB Arbitration Rule to 'Particularly' Impact Credit Cards, Lawyer Says | Auto Finance News | Auto Finance News

CFPB Arbitration Rule to ‘Particularly’ Impact Credit Cards, Lawyer Says

The Consumer Financial Protection Bureau’s new arbitration rule issued Monday might have a “particular impact” on revolving credit programs in powersports, David Gemperle, partner at Nisen & Elliott LLC, told Powersports Finance.

The rule bans companies from using arbitration clauses to deny groups of people their day in court. Financial institutions often have arbitration clauses in their contracts that prevent consumers from joining together to sue their bank or financial company for wrongdoing, according to a CFPB press release.

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