Credit union trade groups urged senators Monday to support efforts to nullify a CFPB rule restricting the use of mandatory arbitration, even as a key Democrat said the recent Equifax data breach and Wells Fargo debacle demonstrate the need for the rule.
"For many community financial institutions, arbitration is a practical alternative to costly and interminable class action litigation," leaders of CUNA, NAFCU and the Independent Community Bankers of America said, in a joint letter to Senate leaders. "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".
However, Senate Banking Committee ranking Democrat Sherrod Brown of Ohio said the rule is needed to help protect consumers.
Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.
Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
- Exclusive discounts on ALM and CU Times events.
- Access to other award-winning ALM websites including Law.com and GlobeSt.com.
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
