The Consumer Financial Protection Bureau’s release of its set of proposed rules coincided with a field hearing held in New Mexico Thursday. Under the bureau’s proposal, companies would still be able to include arbitration clauses in their contracts. However, for contracts subject to the proposal, the clauses would have to say explicitly that they cannot be used to stop consumers from being part of a class action in court.
Last month, the U.S. Department of Labor announced its final fiduciary rule, sometimes referred to as the conflicts of interest rule. The rule mandates financial professionals who service individual retirement accounts, including IRAs and 401(k) plans, to serve the “best interest” of the savers and disclose conflicts of interest.
In January, the nation’s highest court ruled that an unaccepted offer of complete relief to a named plaintiff in a putative class action lawsuit does not moot the plaintiff’s claim. But it would not decide whether the result would be different if a defendant deposits the full amount of the plaintiff’s individual claim in an account payable to the plaintiff, and the court then enters judgment for the plaintiff in that amount.