Bank and CU Trade Groups Write in Opposition of Amendment to Reinstate Flawed Arbitration Rule

Bank and credit union trade groups wrote a joint letter on May 21 to members of the House of Representatives opposing a proposed amendment to H.R. 1500 (Consumers First Act) that would reinstate the Consumer Financial Protection Bureau's arbitration rule.

The trade group wrote: "Returning to this flawed rule would undermine the ability of the members of our organizations to continue to offer arbitration, which is a convenient, simple, and efficient dispute resolution process for our customers."

Congress under the Congressional Review Act in 2017 disapproved the arbitration rule.

The amendment was introduced by Representative Al Green (D-TX).

The House of Representatives is expected to consider H.R. 1500 and its amendments in the coming days.

The trade groups signing the letter are the American Bankers Association, Bank Policy Institute, Consumer Bankers Association, Credit Union National Association, and the National Association of Federally Insured Credit Unions.

Read the letter.