Hurrah for the Consumer Financial Protection Bureau: Consumer Arbitration As a Poster Child for Regulation

Abstract

Drawing on economic, psychological and philosophical considerations, this Essay considers whether consumers should be "free" to "agree" to contractually trade their opportunity to litigate in a class action for the opportunity to bring an arbitration claim against a company. The Essay suggests that by looking at the CFPB's regulation through these three lenses, one sees that the regulation is desirable—even a poster child—for the potential value of regulation when market forces are not sufficient to protect individual or public interests.

Keywords: Consumer Financial Protection Bureau, Consumer Arbitration, class action, Dodd-Frank, CFPB