Happy Wednesday, Credit Union Compliance World. As you know, on July 10th, the CFPB finalized its rule on arbitration agreements. We blogged about the basics of the rule and the epic hero’s journey that is trying to identify its scope. On Monday, thankfully, the CFPB released its Small Entity Compliance Guide regarding the final arbitration rule. While the amount of footnotes involved in discussing the scope should be a clue to the Bureau that the rule is painfully technical, it is nice to have a version written in Standard American English.
Thanks to the Equifax breach and the breathtaking cascade of bungled responses in its aftermath, arbitration provisions are back in the limelight. If your credit union is seeking to help assist members affected by the breach, visit NAFCU’s Equifax Data Breach Resources webpage. If you’re angry, know that your feelings are valid and shared. We’ve written to Congress, the CFPB, the FTC and NCUA to ask them to take action to protect credit unions and their members. In the meantime, perhaps this is a good time to take a deeper look at the arbitration rule’s language requirements.
From Agreements to Delegates, In Order Categorical
NAFCU has gotten a few questions about when it is appropriate to use the nine different model clauses included in the rule. Below is a breakdown of the various clauses in the rule and when and how they can be used.continue reading »