President Trump signed a joint resolution that nullifies the Consumer Financial Protection Bureau’s (CFPB) arbitration rule

President Trump signed a  joint resolution that nullifies the Consumer Financial Protection Bureau’s (CFPB) arbitration rule. Both credit union trade groups supported the repeal. NAFCU was on hand at the White House for the signing.

Released in final form in July, the CFPB's arbitration rule would have prohibited the use of arbitration agreements for the purpose of limiting access to class action litigation.

“The repeal of the CFPB’s arbitration rule is a win for credit unions, as well as a positive sign that Congress is willing to intervene when it comes to ill-tailored rules not narrowly focused on abusers of consumers,” said CUNA President/CEO Jim Nussle in a statement. “CUNA, leagues and credit unions will build on this momentum that one-size-fits-all rulemaking from the CFPB does not make sense for smaller financial institutions like credit unions moving forward as we work to achieve additional regulatory relief objectives.” 

NAFCU President and CEO Dan Berger and EVP Carrie Hunt were at the White House for the signing.

"NAFCU strongly supports consumer protections, but credit unions were not the bad actors this rule was meant to target," Berger said. "We appreciate President Trump and Congress for their leadership and listening to our concerns and working to ensure consumers and institutions have access to various forms of dispute resolution. NAFCU is honored to have been invited to the White House to watch the undoing of a rule that likely would have had negative effects on the credit union industry."