---
kind: "section"
citation: "12 U.S.C. § 5518"
title: "12"
title_heading: "Banks and Banking"
number: "5518"
heading: "Authority to restrict mandatory pre-dispute arbitration"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/5518"
units:
  - "Chapter 53 — Wall Street Reform and Consumer Protection"
  - "Subchapter V — Bureau of Consumer Financial Protection"
  - "Part B — General Powers of the Bureau"
---

# §5518. Authority to restrict mandatory pre-dispute arbitration

- (a) **Study and report—** The [Bureau](/usc/12/5301.md?p=4) shall conduct a study of, and shall provide a report to Congress concerning, the use of agreements providing for arbitration of any future dispute between [covered persons](/usc/12/5481.md?p=6) and [consumers](/usc/12/5481.md?p=4) in connection with the offering or providing of [consumer](/usc/12/5481.md?p=4) financial products or services.
- (b) **Further authority—** The [Bureau](/usc/12/5301.md?p=4), by regulation, may prohibit or impose conditions or limitations on the use of an agreement between a [covered person](/usc/12/5481.md?p=6) and a [consumer](/usc/12/5481.md?p=4) for a [consumer financial product or service](/usc/12/5481.md?p=5) providing for arbitration of any future dispute between the parties, if the [Bureau](/usc/12/5301.md?p=4) finds that such a prohibition or imposition of conditions or limitations is in the public interest and for the protection of [consumers](/usc/12/5481.md?p=4). The findings in such rule shall be consistent with the study conducted under [subsection (a)](#a).
- (c) **Limitation—** The authority described in [subsection (b)](#b) may not be construed to prohibit or restrict a [consumer](/usc/12/5481.md?p=4) from entering into a voluntary arbitration agreement with a [covered person](/usc/12/5481.md?p=6) after a dispute has arisen.
- (d) **Effective date—** Notwithstanding any other provision of law, any regulation prescribed by the [Bureau](/usc/12/5301.md?p=4) under [subsection (b)](#b) shall apply, consistent with the terms of the regulation, to any agreement between a [consumer](/usc/12/5481.md?p=4) and a [covered person](/usc/12/5481.md?p=6) entered into after the end of the 180-day period beginning on the effective date of the regulation, as established by the [Bureau](/usc/12/5301.md?p=4).

## Source credit

(Pub. L. 111–203, title X, § 1028, July 21, 2010, 124 Stat. 2003.)

## Notes

### Statutory Notes and Related Subsidiaries

### Effective Date

Section effective on the designated transfer date, see section 1029A of Pub. L. 111–203, set out as a note under section 5511 of this title.