Michelle Singletary (and Richard Cordray) on Mandatory Consumer Arbitration

In yesterday's Washington Post, Michelle Singletary uses the Supreme Court's recent decision in Compucredit v. Greenwood (which we mentioned and linked to here) as a springboard to discuss the debate over pre-dispute mandatory arbitration clauses in consumer contracts. She reminds us that the Dodd-Frank financial reform legislation requires the new Consumer Financial Protection Bureau to study arbitration. Based on that study, the CFPB can, by regulation, ban or limit arbitration in matters within the CFPB's authority. Singletary quotes Richard Cordray, the new recess-appointed head of the CFPB, who says that “[w]e understand the importance of this issue, and we’ll be moving forward as required by Congress.”