CUNA supports the efforts of lawmakers on a resolution of disapproval for the Consumer Financial Protection Bureau’s arbitration rule that would prohibit financial firms from using mandatory arbitration to block class actions by consumers. Even though only a small number of credit unions use the arbitration process, this is an important tool for credit unions and their members to resolve disputes.
Jim Nussle, CUNA president/CEO, released the following statement of support for H.J. Res 111 and the Senate version, which will be filed later today, to use Congressional Review Act (CRA) authority to repeal the rule:
“The CFPB’s arbitration rule is flawed and once again, the Bureau refused to recognize the unique size and structure, and inherent consumer protections provided by America's credit unions. The rule removes an often quicker and less expense alternative dispute resolution process for credit unions and instead encourages costly litigation, which depletes the resources of credit union member-owners. Credit unions and their members are more than capable of resolving disputes without the predatory interference of the plaintiffs’ bar. CUNA, the leagues and credit unions support Congressional efforts to have the CFPB create a better rule that enhances consumer protection and encourages the good work of consumer friendly financial service providers such as credit unions, rather than another unnecessary regulation for credit unions.”