Congress agrees: CFPB's arbitration rule doesn't make sense for CUs

Good evening folks,

I'm happy to announce we've just seen another victory in our Campaign for Common-Sense Regulation as the Senate joined the House in voting to repeal the CFPB's arbitration rule. This rule was the latest example of the CFPB applying one-size-fits-all regulations that treat credit unions the same as the largest Wall Street banks like Wells Fargo.

Once the joint resolution is signed by President Trump, the rule will not go into effect and the CFPB will not be able to issue a substantially similar arbitration rule in the future. This could provide an opportunity for a future rule that is more narrowly tailored to address bad actors, and one that ensures credit union members won't be encouraged into costly and time-consuming litigation against fellow member-owners.

CUNA, the leagues, credit unions and members enacted fierce 360-degree advocacy by telling legislators loud and clear that this kind of regulation is unacceptable and inappropriate given our member-ownership structure. They listened. Today's congressional action combined with several other recent legislative victories shows that the Campaign for Common-Sense Regulation is resonating with members of Congress on both sides of the aisle. Thanks to your support, I believe that policymakers are more clearly understanding that increased regulations are harming some of the very consumers they're intended to protect.

We've still got plenty to accomplish through our Campaign for Common-Sense Regulation, so while this win tastes sweet, we've got to keep up the momentum for the good of all of our credit unions and their 110 million members.

All the best,

Jim Nussle

President & CEO

Credit Union National Association