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10.19 Authority to Restrict Mandatory Pre-Dispute Arbitration

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10.19 Authority to Restrict Mandatory Pre-Dispute Arbitration

 

 


10.19.   Authority to Restrict Mandatory Pre-Dispute Arbitration.  The Bureau is required to conduct a study concerning the use of agreements providing for arbitration of any future dispute between Covered Persons and consumers in connection with the offering or providing of consumer financial products or services.[§1028]  The Bureau is to report to Congress on its findings.          

            The Bureau may, by regulation, prohibit or impose conditions or limitations on the use of an agreement that provides for mandatory pre-dispute arbitration.  This provision does not prevent a consumer from entering into a voluntary agreement with a Covered Person after a dispute has arisen.

Any regulation issued by the Bureau regarding mandatory pre-dispute arbitration shall apply to any agreement between a consumer and a Covered Person entered into after the end of the 180-day period beginning on the effective date of the regulation.