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CFPB released its proposed arbitration rule today in advance of a field hearing focused on arbitration clauses. The association has raised concerns about the rule's impact on credit unions.

The proposal follows the outline the bureau released last October on the use of arbitration agreements. The outline did not include an outright ban of pre-dispute arbitration but merely prohibited the use of "class action waivers" in financial product agreements. The outline also contained a potential requirement for financial institutions to submit information on arbitration claims and rewards to the bureau.

"NAFCU and our members believe that consumers should have access to fair and efficient methods of dispute resolution," NAFCU Director of Regulatory Affairs Alexander Monterrubio said in a statement. "To that end, we urge the bureau to avoid promulgating any rule that unreasonably limits the availability of arbitration or creates burdensome reporting requirements that negatively affect credit unions. NAFCU is especially concerned with the CFPB's plan to publish the arbitration data it collects as such actions would present system-wide reputational risk, meddle in the arbitration process, and create significant privacy issues."

NAFCU will continue to study the proposal for its impact on credit unions.

NAFCU will also monitor today's field hearing, which takes place at 11 a.m. Mountain time (1 p.m. Eastern) in Albuquerque, N.M., for any impact a proposed rule would have on credit unions. During the hearing, which will be streamed live, CFPB Director Richard Cordray will deliver remarks during the event. Consumer groups, industry representatives and members of the public will also weigh in.