While August is traditionally a slower month on the legislative front in Washington, D.C., a number of important credit union rulemakings have comment deadlines this month. Significant proposals from both NCUA and Consumer Financial Protection Bureau (CFPB) are in this month’s comment deadlines.
On Aug. 22, comments are due on CFPB’s proposal on arbitration agreements, which would severely restrict the use of pre-dispute arbitration clauses that are included in many agreements for consumer financial products.
CUNA believes the proposal is inappropriate for credit unionsfor several reasons, including that credit unions have different dispute resolution dynamicsbecause of their structure. Credit unions also have recently expressed more concerns about frivolous class action litigation as a result of new regulations with technical requirements, which has increased their interest in preserving arbitration as an option.
Comments on the proposal can be submitted to CUNA by Aug. 12.