From: RegBlog |Penn Program on Regulation
***
Some lawyers and scholars believe that the CFPB does not have authority to block arbitration provisions. They claim that the CFPB’s own study does not support the inference that the regulation would serve the public interest, and that the rule is an unwarranted restriction on the right to enter contracts.
Before formally proposing the rule, the CFPB is working with other agencies to assess its potential impact. The agency, the Office of Management and Budget, and the Small Business Administration are seeking input about the planned rule from small businesses before moving forward.