Removing Barriers Blog

Arbitration CRA Update: Media Hits Continue
Posted September 22,2017 by ManojBhoi

This week, CUNA took to the media to continue advocacy efforts urging the Senate to take action on the Congressional Review Act of the Consumer Financial Protection Bureau’s Arbitration Rule.    

As the Senate continues to consider H.J. Res 111 – the disapproval of the CFPB’s Arbitration rule, CUNA has been vocal about credit union concerns with this rule. Specifically, that the unique size and membership owner structure of credit unions make class action litigation particurly inappropriate. 

On Thursday afternoon CUNA’s Chief of Advocacy Ryan Donovan was quoted in a piece by the American Banker where they discussed the politics of the Equifax breach affecting the Senate’s CRA efforts, 

“The financial services industry is also fighting back against that comparison. Ryan Donovan, chief advocacy officer at the Credit Union National Association, said using the breach as a reason to support the arbitration rule is a “red herring because it is a totally different situation in which consumers who had no established relationship with Equifax could have been forced to arbitrate certain claims.”  “Also, lost in the confusion is that the clause did not even apply to the breach itself,” Donovan said.” 

Today, CUNA President and CEO Jim Nussle published an op-ed in the Morning Consult where he urged the Senate to act and stop the CFPB from lumping credit unions in with Wall Street.   

“Rather than addressing any actual problems, the CFPB’s arbitration rule has created an environment for credit union members to act against their own best interest. The rule encourages trial lawyers to engage consumers in costly and resource-depleting litigation. For a credit union member, that means the arbitration rule creates a greater likelihood that money will come out of their own pockets to pay for trial lawyers.” 

CUNA continues to remind the Senate that credit unions and their members overwhelmingly support congressional efforts to rescind the CFPB’s arbitration rule and urge them to act on this important resolution.