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CFPB released its proposed arbitration rule Thursday, which would prohibit the use of arbitration agreements to limit consumer access to class action litigation.

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."

Speaking on the proposal during a CFPB field hearing Thursday, bureau Director Richard Cordray said, "Under the proposed regulation … companies could still include arbitration clauses in their contracts. For new contracts, however, these clauses would have to say explicitly that they cannot be used to stop consumers from grouping together in a class action."

NAFCU will continue to study the proposal for its impact on credit unions. The proposal is out for a 90-day comment period after publication in the Federal Register.