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NAFCU joined with other industry trades Tuesday to advise the House to oppose a proposed amendment that would reinstate the CFPB's arbitration rule. NAFCU was the only credit union trade group in attendance when President Donald Trump signed the congressional joint resolution to overturn the rule in November 2017.

"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," the trades wrote to Congress Tuesday.

Finalized in July 2017, the CFPB's arbitration rule would have prohibited the use of arbitration agreements for the purpose of limiting access to class action litigation. In its comment letter regarding the rule, NAFCU argued that the conclusions derived from the CFPB's final arbitration study were unfounded and did not support the proposal. The association warned the rule would have several unintended consequences for credit unions and their members, including increased costs.

Under the Congressional Review Act, legislators can vote to overrule new federal regulations with a joint resolution of disapproval within 60 legislative days after regulators have submitted the rule to Congress. The resolution disapproving of the arbitration rule was passed by both chambers before being signed by the president, which is noted in the joint trades letter.

The amendment, proposed by Rep. Al Green, D-Texas, would add the provision to H.R. 1500, a bill that would roll back efforts at the CFPB that were implemented under former Acting Director Mick Mulvaney. The House could vote on the bill as early as today; it is unlikely to pass the Senate.