CRA Outcomes on Arbitration
October 25, 2017
Today’s outcome preserves consumers’ option to resolve disagreements with financial institutions outside of the court system. If Congress had not acted, the arbitration rule would have negatively impacted the prepaid card industry, which provides an on-ramp to financial services for many Americans. We have long been concerned the bureau’s rule would have negative effects on consumers, by removing an important manner to resolve disputes, and potentially limiting product offerings in the broader financial services market and the prepaid industry. The NBPCA believes that the most effective way to resolve disagreements is to develop a process that encourages consumers and financial institutions to work out their differences in a timely fashion.