Newsroom

Responses for a NAFCU Economic & CU Monitor survey on the use of arbitration clauses are due Aug. 1.

The survey includes questions on whether credit unions use arbitration clauses and for what products, as well as if the clauses contain "class action waivers." Questions also focus on respondents' experience with class action suits and the cost of dealing with them. Finally, the survey asks if the credit unions believe CFPB's proposed rulemaking on arbitration might cause their insurance costs to increase or affect their ability to offer certain products and services.

CFPB in May issued a proposed arbitration rule that would prohibit the use of arbitration agreements to limit consumer access to class action litigation.

NAFCU supports ensuring consumers have access to fair and efficient dispute resolution mechanisms and continues to review the proposed rule for its potential impact on credit unions as well as their members. NAFCU has noted its concern over the bureau's proposal to collect and publish arbitration data. The association has warned that such action could create system-wide reputational risk, raise privacy concerns and encourage frivolous lawsuits.