In a BankThink piece appearing in the American Banker, the National Association of Consumer Advocates (NACA) criticized credit unions for their opposition to the proposed arbitration rule from the Consumer Financial Protection Bureau (CFPB).
The CFPB in May published its proposed rule to prohibit class action bans in forced arbitration clauses.
The authors wrote: "Despite statements by credit union representatives and empirical data proving that most credit unions do not use forced arbitration, their lobbyists are decrying the rule."
The Consumer Group goes on to state that "[g]iven this record of credit unions eschewing forced arbitration, the industry's growing attacks on the CFPB proposal are jarring."
NACA claims that the credit union industry's protest about class action lawsuits are unfounded and that the credit union industry is depriving its "members of critical choices."
It should be noted that the NACA is a group comprised of lawyers and "consumer advocates," many of whom derive a good portion of their income from suing financial institutions. It could be argued, quite convincingly in my opinion, that the CFPB would be more appropriately named the CAFPB: they have provided FAR more financial protection to so-called consumer attorneys than to consumers.
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