Removing Barriers Blog

Arbitration CRA Update: Senate Banking Chairman Expects Vote Soon

In July, the Consumer Financial Protection Bureau finalized its rule on arbitration.  After analyzing the nearly 800-page rule, CUNA was extremely disappointed that the CFPB once again decided to apply new rules to credit unions where there was no evidence of consumer abuse. 

Shortly after the CFPB finalized the rule, Republicans in both the House and Senate introduced a resolution of disapproval to nullify the rule. The House passed their resolution before they left for August recess, however, the Senate has yet to hold a vote on the Senate floor. 

Earlier today, Senate Banking Chairman Mike Crapo said he expects the Senate to act on the resolution soon. "My understanding is that we are going to move it," he said. "I expect that to be soon." 

While CUNA remains optimistic that the Senate will act sooner rather than later, the aftermath of Hurricane Harvey and the impending hurricanes and storms off the coast of Florida could lead to a delay in regular order.   

CUNA, the Leagues and credit unions fully support Congress and their efforts to repeal the CFPB’s arbitration rule. Credit unions frequently work with members to provide refunds, work out payment plans, and find other solutions to resolve a dispute. In its final rule the CFPB declined to recognize the unique size and structure of credit unions in the rule or the harm that class action litigation can cause to credit unions and their members.  

The House of Representatives passed the Resolution easily, but the vote on the Senate floor is expected to be a much tighter vote margin.  America’s credit unions are appreciative of the work done in the House and will continue to actively engage with the Senate on this important issue.