ARLINGTON, Va.–NAFCU said it is supportive of the CFPB’s intent regarding its outline of potential rulemaking ideas on arbitration clauses, but it is concerned any new proposals will become yet another regulatory burden on credit unions.
“NAFCU and our members strongly support reasonable and fair dispute resolution,” said Director of Regulatory Affairs Alicia Nealon. “We appreciate the CFPB looking at the practices of actors in the marketplace that could harm consumers. As with any rulemaking, NAFCU wants to ensure that there are no unintended consequences for credit unions. At first blush, the CFPB’s announcement could suggest broad, sweeping reporting requirements that may unintentionally burden credit unions. NAFCU will closely review the CFPB’s potential rulemaking ideas to avoid those unintended consequences.”
Following the hearing, Ryan Donovan, chief advocacy officer at CUNA, emphasized how CU’s look out for members’ best interests.
“Credit unions are the only consumer-owned cooperatives in the financial marketplace, and have a proud heritage of protecting their members’ interests,” said Donovan. “Credit unions are more likely to resolve disputes without resorting to arbitration or litigation. CUNA is reviewing the CFPB proposals on arbitration to determine whether there are any potential adverse implications for credit unions. We are very appreciative that CUNA member John Rudy, senior vice president and chief lending officer at Bellco Credit Union, participated in today’s hearing and represented the voices of credit unions throughout the country.”