"NAFCU appreciates the Senate taking up this vote in a timely manner," said NAFCU President and CEO Dan Berger. "While NAFCU strongly supports consumer protections, credit unions should not have been included in this rulemaking as they are not the bad actors the rule is meant to target. Credit unions should also have access to various forms of dispute resolution, and this rule, as written, could have led to a rise in frivolous lawsuits."
Released in final form in July, the CFPB's arbitration rule would have prohibited the use of arbitration agreements for the purpose of limiting access to class action litigation. In its comment letter regarding the rule, NAFCU argued that the conclusions derived from the CFPB’s final arbitration study were unfounded and did not support the proposal, and that the rule would have several unintended consequences for credit unions and their members, including increased costs.