ATLANTA—The United States Court of Appeals for the 11th Circuit has published a decision holding that the Dodd-Frank Act “does not prohibit the enforceability of delegation clauses contained in consumer arbitration agreements ‘in any way.’”
In the case of Attix. v. Carrington Mortgage Services, LLC., the 11th Circuit Court reversed a decision from the U.S. District Court denying Carrington’s motion to compel arbitration. The opinion “remains significant” because it is one of the first appellate decisions in the country concerning the Dodd-Frank Act’s arbitration provision, NAFCU noted in its analysis.
“Of note, in this case, the plaintiff is suing the defendant for convenience fees charged by a third-party phone payment processor,” NAFCU said. “The third-party had terms and conditions that contained an arbitration clause as well as a clause that requires an arbitrator to decide the arbitrability of the claims. There is no dispute that the plaintiff accepted the terms and conditions, but the plaintiff is arguing that they violate the Dodd-Frank Act.”
The Decision
The 11th Circuit Appeals Court ultimately decided that because the Dodd-Frank Act does not specify who should determine the arbitrability of claims and in this case the arbitration agreement specifies that an arbitrator should make the decision of arbitrability, then that is what should follow, NAFCU stated.
The trade group added that if the Forced Arbitration Injustice Repeal (FAIR) Act becomes law, it does address the issue and specifies that the court should determine the applicability of the FAIR Act to an agreement, not an arbitrator.
Has Everyone But You Heard the News?
Don’t forget to check your Spam/Junk email folder if you haven’t been receiving your free, popular and daily CUToday.info news headlines.
And if you haven’t yet signed up for the new email solution on which CUToday.info has partnered with ResponseGenius, you can do so here. Signing up requires less than one minute of your time.
CUToday.info has received very positive response from readers following the move to an improved provider of the daily headlines, but many also noted they did need to go to their Spam/Junk folder and mark it as safe.
The new email solution has not only improved every reader’s delivery experience, but it also features a fresh, new format that is easy to read, especially on mobile devices.
Please note and/or make your IT department or email administrator aware the emails will be coming from the domains CUTodayinfo.com and CUTodayinfoReply.com