12 U.S.C. § 5518 — Authority to restrict mandatory pre-dispute arbitration
submitted 16 years ago by Pub. L. 111-203 to r/title-12-BANKS-AND-BANKING · 225 words · no verdicts yet
The Bureau must study arbitration agreements for future disputes between consumers and covered persons and report to Congress. It may later ban or limit such agreements if it makes findings required by this section, but it may not restrict voluntary arbitration agreed to after a dispute begins.
(a) Study and report. The Bureau* must study the use of agreements that provide for arbitration of a future dispute between a covered person* and a consumer* in connection with offering or providing a consumer financial product or service*. It must give Congress a report about that use.
(b) Further authority. By regulation, the Bureau may prohibit the use of such an agreement, or impose conditions or limits on it, if the Bureau finds that doing so is in the public interest and protects consumers. The findings in the regulation must be consistent with the study under subsection (a).
(c) Limitation. The authority in subsection (b) does not allow the Bureau to prohibit or restrict a consumer from voluntarily entering an arbitration agreement with a covered person* after a dispute has arisen.
(d) Effective date. Despite any other law, a Bureau regulation under subsection (b) applies, according to its terms, to agreements between consumers and covered persons entered into after the 180-day period beginning on the regulation’s effective date, as established by the Bureau.
The Bureau* shall conduct a study of, and shall provide a report to Congress 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.
The Bureau, by regulation, may prohibit or impose conditions or limitations on the use of an agreement between a covered person* and a consumer for a consumer financial product or service* providing for arbitration of any future dispute between the parties, if the Bureau finds that such a prohibition or imposition of conditions or limitations is in the public interest and for the protection of consumers. The findings in such rule shall be consistent with the study conducted under subsection (a).
The authority described in subsection (b) may not be construed to prohibit or restrict a consumer from entering into a voluntary arbitration agreement with a covered person* after a dispute has arisen.
Notwithstanding any other provision of law, any regulation prescribed by the Bureau under subsection (b) shall apply, consistent with the terms of the regulation, 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, as established by the Bureau.
Source credit: (Pub. L. 111–203, title X, § 1028, July 21, 2010, 124 Stat. 2003.)
- 2010Enacted · Pub. L. 111-203 · 124 Stat. 2003
A history note hasn’t been published yet. The record shows enactment by Pub. L. 111-203 on 2010-07-21.
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