Network Branded Prepaid Card Association's statement on the release of the CFPB’s arbitration rule
July 10, 2017
The following statement can be attributed to Brian Tate, President and CEO of the Network Branded Prepaid Card Association (NBPCA), on the release of the CFPB’s arbitration rule:
“We are disappointed the CFPB has ignored its own research and gone forth with a rule which will not only harm the prepaid industry, but will more critically deprive consumers of an efficient, inexpensive, and convenient manner to resolve disputes. The bureau’s final rule does not adequately consider the costs of its proposal on consumers or financial services providers. According to the bureau’s own research, arbitration has proven to be a faster and more affordable alternative to class action litigation, which doesn’t always benefit consumers and is not always available for all claims.
“As stated in our August 2016 comment letter, we believe the CFPB has exceeded its authority granted under Dodd-Frank. Moreover, the NBPCA is concerned the downstream impacts of the arbitration rule will be harmful to consumers, causing consolidation and a stymying of innovation in the consumer financial services market, including prepaid card products. This ultimately will lead to less choice and freedom for American consumers. We urge the CFPB to reconsider its rulemaking and the NBPCA will continue to express our concerns and engage stakeholders to address needed changes.”