May 18, 2016

Thaler: NAFCU eyeing CFPB arbitration proposal

NAFCU supports ensuring consumers fair and efficient dispute resolution and will review CFPB's proposed arbitration rule for its impact on credit unions as well as their members, NAFCU's Brad Thaler said Tuesday as lawmakers prepared for a hearing today on the measure.

"NAFCU and our members believe that consumers should have access to fair and efficient methods of dispute resolution," Thaler, NAFCU's vice president of legislative affairs, wrote. "To that end, we would hope that the CFPB would avoid promulgating any final rule that unreasonably limits the availability of voluntary arbitration or creates burdensome reporting requirements that can negatively affect credit unions."

Thaler told the panel that NAFCU is presently reviewing the proposed rule and will provide input to CFPB. In the meantime, he notedone concern over the bureau's proposal to collect and publish arbitration data. Such action "could create system-wide reputational risk, raise privacy concerns and encourage frivolous lawsuits," he warned.

Thaler's letter went to subcommittee Chairman Randy Neugebauer, R-Texas, and Ranking Member William "Lacy" Clay, D-Mo., and was copied to all panel members.