Newsroom
August 23, 2016
Sasse, McHenry raise arbitration concerns
Sen. Ben Sasse, R-Neb., and Rep. Patrick McHenry, R-N.C., were joined by a group of 140 members of Congress this week in raising their concerns about CFPB's proposal to prohibit the use of arbitration agreements to limit consumer access to class action litigation.
The letter to CFPB Director Richard Cordray on Monday was signed by 36 senators and 104 representatives.
"The Bureau's proposal on arbitration agreements is at odds with its stated mission to ‘make consumer financial markets work for consumers,' " the lawmakers wrote. "The proposal seeks to substantially reduce the use of a highly-effective, low-cost and fair process for resolving disputes, forcing consumers to address their grievances through our very expensive, overburdened legal system."
"We fail to see how a proposal that limits consumer choice and increases legal fees is consistent with the mission of the Bureau," they continued.
NAFCU believes consumers should have access to fair and efficient methods of dispute resolution, and 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.
The letter to CFPB Director Richard Cordray on Monday was signed by 36 senators and 104 representatives.
"The Bureau's proposal on arbitration agreements is at odds with its stated mission to ‘make consumer financial markets work for consumers,' " the lawmakers wrote. "The proposal seeks to substantially reduce the use of a highly-effective, low-cost and fair process for resolving disputes, forcing consumers to address their grievances through our very expensive, overburdened legal system."
"We fail to see how a proposal that limits consumer choice and increases legal fees is consistent with the mission of the Bureau," they continued.
NAFCU believes consumers should have access to fair and efficient methods of dispute resolution, and 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.
Share This
Related Resources
Add to Calendar 2024-03-26 09:00:00 2024-03-26 09:00:00 Ensuring Safety and Soundness with AI Listen On: Key Takeaways: [03:48] The regulators are very focused on fairness in lending especially when it comes to using AI and outside models. The industry is moving very fast. [08:25] Articulating a business use case and how partnering with a Fintech can support it is the first step in having a successful conversation with your board. [10:30] Talk to your account executive at your Fintech and have them help you overcome objections. [15:01] Plan for oversight. It is not set and forget it. Your regulators are going to want to know how you are overseeing that from a 3rd party risk management standpoint. [15:47] Have a handle on your reserves and capacity for lending and start small and grow slowly. Web NAFCU digital@nafcu.org America/New_York public
Ensuring Safety and Soundness with AI
preferred partner
Upstart
Podcast
Help Ease Your Members' Loan Payment Concerns
Planning, Auto Loans, Research
preferred partner
TruStage
Blog Post
The Value of Risk Management in Cybersecurity
preferred partner
DefenseStorm
Video
Add to Calendar 2024-03-13 14:00:00 2024-03-13 14:00:00 Digital Assets in Credit Unions: What Are the AML Risks? The digital asset boom is upon us. Like it or not, you have to deal with it effectively with your members, credit unions are on the frontlines of crypto adoption. Even the NCUA has been providing more and more guidance on different aspects of digital assets. You need to be prepared. How? By understanding the core basics of digital assets (specifically cryptocurrencies) the risks that it poses to credit unions and how you can be better prepared to handle issues when they arise. In this webinar, Understanding the Digital Assets Boom, you’ll focus on the basics of digital assets, a background of cryptocurrencies and types, the regulations that are established and the proposals that are being considered and how to position yourself to understand all of these components and include them in your day-to-day roles. Key Takeaways Comprehend the basics of digital assets including cryptocurrencies Understand currently established regulations and what the future has in store, specifically in 2024 Identify and remediate issues that arise in your credit union Register Now $295 Members | $395 Nonmembers(Additional $50 for USB)One registration gives your entire team access to the live webinar and on-demand recording until March 13, 2025Go to the Online Training Center to access the webinar after purchase » Who Should Attend NCCOs NCRMs Compliance and risk titles Education Credits NCCOs will receive 1.0 CEUs for participating in this webinar NCRMs will recieve 1.0 CEUs for participating in this webinar Web NAFCU digital@nafcu.org America/New_York public
Digital Assets in Credit Unions: What Are the AML Risks?
Credits: NCCO, NCRM
Webinar
Get daily updates.
Subscribe to NAFCU today.