CUNA is closely following a joint resolution that would repeal the Consumer Financial Protection Bureau’s arbitration rule, and is engaged with a number of other activities on Capitol Hill this week. CUNA, which has expressed concerns with the rule since it was originally proposed, sent a letter Monday with other organizations supporting the resolution.
The resolution would use the Congressional Review Act (CRA) to repeal the rule and prevent the CFPB from issuing any similar rule relating to arbitration. Sen. Mike Crapo (R-Idaho) and Rep. Keith Rothfus (R-Pa.) introduced the resolution in their respective chambers.
“The undersigned trade organizations urge Congress to swiftly exercise its oversight authority under the CRA to disapprove of the CFPB’s final arbitration rule,” the letter reads. “Arbitration can ensure that consumers receive faster, more cost-effective, and higher recovery resolutions than offered by class action litigation favored by trial attorneys, and it will be harmful to them if this dispute resolution process is eliminated.
CUNA and the organizations cited the incompleteness of the CFPB’s arbitration study, the inconsistency of the rule compared with the study’s results, harm to the public interest and the rule’s failure to enhance consumer protection among the reasons why the rule should be repealed.
CUNA is also engaged with the following activities on Capitol Hill this week:
Addition information can be found on CUNA’s Removing Barriers Blog.