America’s Credit Unions is concerned with any potential legislation to restrict arbitration, the organization wrote to the Senate Judiciary Committee this week ahead of its Tuesday hearing on arbitration. America’s Credit Unions President/CEO Jim Nussle noted in the letter that arbitration can be an efficient means to resolve legal disputes, and the ability to quickly and amicably resolve disputes is essential to any modern financial institution.
“It is important, when considering laws that would ultimately limit options to resolve disputes, for Congress to recognize the substantial harm that expensive, protracted litigation levy on credit unions and their members,” Nussle wrote. “Consumers’ ability to access the high-quality, safe, and affordable products of credit unions would be put in jeopardy if credit unions are forced to reallocate considerable resources to defend against high-cost litigation due to the absence of a fair and efficient arbitration system.”
Nussle added that a recent analysis of CFPB data shows no connection between the use of arbitration and increased violations of law; nor any correlation between the use of arbitration and increased consumer complaints or heightened CFPB enforcement activity.
America’s Credit Unions will continue to fight back against policies that would place barriers between consumers and safe and affordable credit union services.
