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In a letter Thursday to Sen. Ben Sasse, R-Neb., and Rep. Patrick McHenry, R-N.C., CFPB Director Richard Cordray defended the bureau's proposal to prohibit the use of arbitration agreements to limit consumer access to class action litigation.

Sasse and McHenry were joined by a group of 140 members of Congress in August in raising their concerns to Cordray about the proposal, which they said would limit consumer choice and increase legal fees for companies.

Cordray noted that the Dodd-Frank Act required the CFPB to conduct a study on pre-dispute arbitration clauses, which he said showed "tens of millions" of consumers are subject to arbitration clauses.

"The Bureau also found that consumers rarely consider bringing claims against companies on their own, particularly small claims," Cordray wrote. "Moreover, no evidence was found that these clauses lead to lower prices for consumers."

Cordray also said the CFPB considered different alternatives to the rule, but "absent the ability for consumers to pursue legal claims as a group, the Bureau preliminarily found that there is an inadequate means to both deter and remedy consumer harm."

NAFCU believes consumers should have access to fair and efficient methods of dispute resolution, but the association has raised concerns that the rule could limit the availability of voluntary arbitration and create burdensome reporting requirements for credit unions. NAFCU has also cautioned CFPB about its plan to collect and publish arbitration data, which could create reputational risk, raise privacy concerns and encourage frivolous lawsuits.