U.S. Supreme Court holds oral argument in case involving class action waivers in consumer contracts

The U.S. Supreme Court recently heard oral argument on a case which could have an impact on the availability of mandatory arbitration and class action waivers in consumer contracts. On October 11, 2011, the U.S. Supreme Court heard oral argument in the case of CompuCredit v. Greenwood, Case No. 10-948. The issue before the Court in CompuCredit is whether a credit repair company can require its customers to arbitrate claims—and waive class treatment—under the Credit Repair Organizations Act (“CROA”).

Although the oral argument did not focus specifically on class issues, it is still likely that the Court will use this case as an opportunity to provide a greater context for, and perhaps place some limitations upon the general applicability of, its decision in Concepcion. Moreover, the Court may use this case as a vehicle to shed further light on the strength of the Federal Arbitration Act in the context of consumer class arbitration waivers.

Arbitration, Federal Class Action Law, U.S. Supreme Court