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On Wednesday, CFPB released an Outline of Proposals Under Consideration in which it detailed how the bureau is considering rules that would prohibit the use of arbitration agreements to limit access to class action litigation.

The outline officially marked the beginning of the bureau's Small Business Review Panel process. The outlined proposals under consideration would also require financial institutions to submit arbitral information to the bureau.

NAFCU Director of Regulatory Affairs Alicia Nealon says the association will closely review any proposal that is issued for its potential impact on credit unions.

"NAFCU and our members strongly support reasonable and fair dispute resolution. We appreciate the CFPB looking at the practices of actors in the marketplace that could harm consumers," said Nealon. "As with any rulemaking, NAFCU wants to ensure that there are no unintended consequences for credit unions. At first blush, the CFPB's announcement could suggest broad, sweeping reporting requirements that may unintentionally burden credit unions. NAFCU will closely review the CFPB's potential rulemaking ideas to avoid those unintended consequences."

The outlined proposals under consideration would not create an outright ban on arbitration clauses but limit clauses specific to class action cases. The outlined proposals would also require institutions to submit information on arbitration claims and rewards to the bureau. CFPB is also considering a system that would publish individual arbitration claims and awards on its website for public viewing.

House Financial Services Subcommittee on Financial Institutions and Consumer Credit Chairman Randy Neugebauer, R-Texas, also released a response statement, saying: "Today's proposed regulatory outline from the CFPB would essentially ban arbitration under the guise of consumer protection. Unfortunately, the Bureau disingenuously ignores arbitration's pro-consumer features, which were highlighted in its own study." He also said the subcommittee will examine the issue.

CFPB released a study on arbitration clauses in March, which it says showed arbitration clauses restrict consumer relief by allowing companies to block group lawsuits. The study was mandated under the Dodd-Frank Act.