CUNA, along with trade associations representing nearly every community financial institution in America, wrote Senate leadership Monday to support repeal of the Consumer Financial Protection Bureau’s (CFPB) arbitration rule. The House passed its resolution to repeal the rule in July.
“For community financial institutions, loss of arbitration as a viable option would fuel continued industry consolidation, larger institutions, fewer communities without a dedicated institution and, ultimately, reduced consumer choice,” the letter reads.
The CFPB’s rule would restrict the use of arbitration clauses. It also requires companies to submit to the CFPB certain records about claims, counterclaims and awards issued in arbitration.
The letter goes on to say that the bureau failed to heed the findings of its own report on arbitration, which suggested it offers a better process and outcome for consumers, relative to class action lawsuits.
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