Removing Barriers Blog

CFPB To Hold Arbitration Field Hearing May 5
Posted April 21, 2016 by CUNA Advocacy

The CFPB has announced a field hearing in Albuquerque, New Mexico about arbitration. It will take place on Thursday, May 5 at 11 a.m. UTC, and will follow the typical format of featuring remarks from CFPB Director Richard Cordray, as well as testimony from consumer groups, industry representatives, and members of the public. CUNA expects that the proposed rule for arbitration will be released in conjunction with the hearing. 

A CUNA member from Bellco Credit Union previously participated in the field hearing that coincided with the release of the SBREFA proposal for the arbitration rule held in October. CUNA staff also met with the CFPB in the fall to express concerns about parts of the arbitration SBREFA proposals, outlining concerns about whether a defacto ban on arbitration waivers could result in an increase in frivolous class action lawsuits for credit unions.  

Also, in a letter to the CFPB, the Small Business Administration Office of Advocacy, and the Office of Information and Regulatory Affairs (OIRA), we memorialized these concerns. The letter notes that the arbitration process can be an important tool for some credit unions and credit union members to resolve differences in a fair and efficient manner, without engaging in time and cost consuming litigation.  

The May field hearing is open to the public and requires an RSVP.  A live video will be also be streamed on the CFPB’s website.