Forced Arbitration.. the Next Battlefront

Last month, Congress and the President stepped in and blunted efforts to invalidate boilerplate clauses that compel arbitration in consumer and other contracts under the Fair Credit Reporting Act.  While the move has been hailed as a victory for proponents of these clauses.. if you have one in your contracts the question you need to be asking is.. “was this the war.. or just one of the battles?”  Given the growing trend of states stepping into regulatory environments recently departed by the Trump administration, prudent drafters and volume users of form contracts should expect the battle to move to state legislatures.  The question is, how to prepare for that tactical adjustment going forward, we can help you do that.

Congress Makes It Harder to Sue the Financial Industry

With Vice President Mike Pence breaking a Senate tie, Congress overturned a rule by an Obama-appointed financial regulator that would have made it easier for consumers to sue banks in groups.

WSJ