Removing Barriers Blog

CUNA Applauds House Republican Resolution to Stop the CFPB’s Arbitration Rule

Earlier this morning, lawmakers in the House Financial Services Committee announced that they have introduced a resolution of disapproval to nullify the CFPB’s recently published final rule on Arbitration.   

The final rule unfortunately hurts the ability of credit unions to limit class action lawsuits. It also requires companies to submit to the CFPB certain records about claims, counterclaims and awards issued in arbitration, which raises privacy concerns. 

The Resolution, H.J. Res 111, uses Congressional Review Act authority to repeal this rule and would prevent the CFPB from issuing a similar rule in the future.  On behalf of America’s credit unions, CUNA applauds 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. 

Until this resolution is passed through Congress, CUNA will continue to urge the CFPB to exempt credit unions from this harmful rule.  Credit unions frequently work with members to provide refunds, work out payment plans, and find other dispute resolutions – often in an efficient, cost-effective manner.