Sec. 3. No validity or enforceability of predispute arbitration agreements or joint-action waivers
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Subtitle C of the Consumer Financial Protection Act of 2010 ( 12 U.S.C. 5531 et seq. ) is amended by inserting after section 1036 ( 12 U.S.C. 5536 ) the following: In this section: The term class action means a lawsuit in which 1 or more parties seek or obtain class treatment pursuant to rule 23 of the Federal Rules of Civil Procedure or a comparable rule or provision of State law. The term consumer dispute means a dispute relating to a consumer financial product or service between— a consumer, including a consumer who seeks certification as a class under rule 23 of the Federal Rules of Civil Procedure or a comparable rule or provision of State law; and a covered person.
The term predispute arbitration agreement means an agreement to arbitrate a consumer dispute that has not yet arisen at the time of the making of the agreement. The term predispute joint-action waiver means an agreement, whether or not part of a predispute arbitration agreement, that would prohibit, or waive the right of, one of the parties to the agreement to participate in a joint, class, or collective action in a judicial, arbitral, administrative, or other forum, concerning a consumer dispute that has not yet arisen at the time of the making of the agreement.
Notwithstanding any other provision of law, no predispute arbitration agreement or predispute joint-action waiver shall be valid or enforceable with respect to a consumer dispute. An issue as to whether this section applies with respect to a consumer dispute shall be determined under Federal law. The applicability of this section to an agreement to arbitrate and the validity and enforceability of an agreement to which this section applies shall be determined by a court, rather than an arbitrator, irrespective of— whether the party resisting arbitration challenges the arbitration agreement specifically or in conjunction with other terms of the contract containing the agreement; and whether the agreement purports to delegate such determinations to an arbitrator. .
The table of contents for the Dodd-Frank Wall Street Reform and Consumer Protection Act ( Public Law 111–203 ; 124 Stat. 1376) is amended by inserting after the item relating to section 1036 the following: Sec. 1036A. No validity or enforceability of predispute arbitration agreements or joint-action waivers. .
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- Pub. L. 111-203
- 124 Stat. 1376
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Sec. 3
No validity or enforceability of predispute arbitration agreements or joint-action waivers
Pub. L.Pub. L. 111-203
Stat.124 Stat. 1376
Cites 4Cited by 0 across 0 sources