CUNA Supports Senate Vote on Arbitration Rule
FOR IMMEDIATE RELEASE
Contact: Vicki Christner – CUNA Communications; 202-329-9950; vchristner@cuna.coop
Washington, DC (September 11, 2017) – Credit Union National Association (CUNA) wrote to Senate Leadership and the Senate Banking Committee urging the chamber to vote yes on H.J. Res. 111 when it comes before the Senate. The legislation would disapprove of the Consumer Financial Protection Bureau’s (CFPB’s) recent arbitration rule, which refused to take into account the very different size and member-ownership structure of credit unions. Credit union consumer-members can be particularly harmed by class action litigation where resources are taken directly from members’ own pockets to pay for trial lawyers.
The letter, signed by CUNA, Independent Community Bankers of America and National Association of Federally-Insured Credit Unions, reads:
“Community financial institutions are consumer- and community-focused institutions that thrive or fail based on their reputation for fair treatment of their members/customers. Reputation is a critical business asset to be protected and enhanced. The best marketing plan for these institutions is satisfied consumers. When complaints arise, these institutions are committed to resolving them in a fair, expeditious, and timely manner.
“For many community financial institutions, arbitration is a practical alternative to costly and interminable class action litigation. Class action suits serve the interests of trial lawyers at the expense of consumers who receive paltry settlements and community financial institutions who face exorbitant legal fees. Class action litigation can be ruinous for a community financial institution and the consumers that rely on them for financial services.”
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About CUNA:
Credit Union National Association (CUNA) is the only national association that advocates on behalf of all of America’s credit unions, which are owned by 110 million consumer members. CUNA, along with its network of affiliated state credit union leagues, delivers unwavering advocacy, continuous professional growth and operational confidence to protect the best interests of all credit unions. For more information about CUNA, visit cuna.org.