Newsroom

FOR IMMEDIATE RELEASE

Washington (May 5, 2016) -- National Association of Federal Credit Unions (NAFCU) Director of Regulatory Affairs Alexander Monterrubio issued the following statement in response to the arbitration proposed rule released today by the Consumer Financial Protection Bureau (CFPB).

"NAFCU and our members believe that consumers should have access to fair and efficient methods of dispute resolution," Monterrubio said "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."

The proposal follows the outline the bureau released last Octoberon 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.

The National Association of Federal Credit Unions is the only national trade association focusing exclusively on federal issues affecting the nation's federally insured credit unions. NAFCU membership is direct and provides credit unions with the best in federal advocacy, education and compliance assistance.www.nafcu.org.

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Patty Briotta
Director of Public Relations
703-842-2820
pbriotta@nafcu.org