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House passes FAIR Act
The House Thursday passed the Forced Arbitration Injustice Repeal Act (FAIR) which bans arbitration provisions in private contracts, in a 222-209 vote.
NAFCU and other industry trades opposed the bill in a joint letter to the House earlier this week, stating that “the use of pre-dispute arbitration clauses in contracts benefits consumers, small businesses, and employees.
“The only clear beneficiaries of broadly eliminating cost-effective and fair arbitration as a viable way to resolve disputes are class action lawyers, who would directly benefit from increased class action litigation,” wrote the authors.
NAFCU has heavily advocated against eliminating the arbitration process, sharing concerns with Congress and highlighting the benefits of arbitration calling it a “fair, effective, and less expensive means of resolving disputes.”
The association will continue to monitor the bill’s progress and continue to fight to retain the arbitration process to help credit unions use arbitration over complex and costly means to resolve disputes.