§5518 Authority to Restrict Mandatory Pre-dispute Arbitration

Summary

The Bureau must study and report to Congress about how companies use agreements that force consumers into arbitration for future disputes over consumer financial products or services. After that study, the Bureau can make rules that ban or limit those pre-dispute arbitration agreements between covered persons and consumers if it finds the rules protect consumers and are in the public interest, and the rules must be based on the study. The Bureau cannot stop a consumer from agreeing to arbitration after a dispute starts. Any rule it makes will apply to agreements signed after the rule goes into effect plus 180 days.