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NAFCU this week published a Regulatory Alert seeking members' input by Dec. 11 on the CFPB's outline for potential rulemaking on arbitration clauses.

Last month, CFPB released an Outline of Proposals Under Consideration on arbitration clauses. The outlined proposals don't suggest an outright ban on pre-dispute arbitration agreements, but it would prohibit the use of arbitration agreements to limit access to class action litigation. The release of the CFPB outline officially marked the beginning of the bureau's Small Business Review Panel process on this issue.

The CFPB is also considering requiring credit unions and other institutions to submit information on arbitration claims and awards for public viewing on the bureau's website.

Upon the release of the CFPB outline, NAFCU Director of Regulatory Affairs Alicia Nealon said the association strongly supports fair dispute resolution. However, she said NAFCU wants to ensure there would be no unintended consequences for credit unions because of overly broad reporting requirements.

CFPB released a report to Congress in March on a study on arbitration clauses that was required by the Dodd-Frank Act. The bureau said the report showed arbitration clauses restrict consumer relief by allowing companies to block group lawsuits. In August, a study by the Mercatus Center at George Mason University concluded that CFPB's report was flawed and that regulating arbitration agreements could hurt consumers.