I apologize for interrupting the steady stream of John Lande photo albums to report that the first comment letter on the Consumer Financial Protection’s Bureau proposal (regulation CFPB-2016-0020, RIN 3170-AA51) to ban class action waivers in consumer financial agreements has been posted on the CFPB website. Thanks to the incredible drafting and organizing efforts of FOI Jean Sternlight (UNLV), 210 professors signed the nine-page letter strongly supporting the proposed ban.
The letter states:
In our view, the proposed regulation banning class action waivers in the consumer financial context is appropriate for three reasons: (1) class actions can serve as a powerful tool to help consumers of financial services and products vindicate their rights under federal and state law; (2) individual arbitrations are not and realistically will never be a sufficient substitute for consumer class actions; and (3) our legal system relies heavily on private enforcement of consumer rights through class actions, as public enforcement may face significant resource restraints.
The body of the letter sets forth justifications for these three arguments. I know Jean thanks the entire ADR Prof community for their support.