HIGHTSTOWN, N.J. (3/11/15)--Credit unions were represented Tuesday during the Consumer Financial Protection Bureau's (CFPB) public field hearing in Newark, N.J., on arbitration.

Louis Vetere, president/CEO, Garden Savings FCU, Parsippany, N.J., took part in the afternoon's panel discussion, according to the New Jersey Credit Union League (The Daily Exchange March 10).

During Tuesday's hearing, CFPB Director Richard Cordray released the results of its arbitration report for Congress.

The study reviewed more than 850 consumer finance agreements; 1,800 consumer finance arbitration disputes filed over three years; a sample of the nearly 3,500 individual consumer finance cases filed in federal court during the same time frame; all of the 562 consumer finance class actions filed in federal court and in selected state courts; and more than 40,000 small claims.

The report found:

• Arbitration agreements affect a large number of consumers. Nearly half of all credit card debt and checking account deposits are subject to arbitration agreements;

• eventy-five percent of respondents did not know if they were subject to an arbitration clause;

• Consumers are reluctant to bring claims against companies on their own, particularly for small claims actions;

• Roughly 32 million consumers on average are eligible for relief through consumer financial class action settlements each year; and

• Arbitration clauses do not necessarily lead to lower prices for consumers.