Credit unions should be exempt from CFPB regulations governing arbitration agreements because of the unique relationship they have with their members, credit union trade groups told the agency on Friday.
In May, the CFPB released proposed rules governing mandatory arbitration clauses found in many contracts. The agency said such clauses in contracts prevent consumers – including credit union members – from joining together in a suit to accuse financial institutions of wrongdoing.
The proposal does not prohibit arbitration clauses, but it specifies the language that may be used in clauses and emphasizes the fact that consumers can join a class-action suit.
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