Association Raises Concerns about Bills Hindering Arbitration
Association reminds Senators that arbitration can be beneficial to consumers when used properly.
Two bills would ban mandatory arbitration clauses currently making their way through Congress, S. 3755 – “Arbitration Fairness for Consumers Act,” and H.R.963 – “FAIR Act of 2022.”
Senators Cardin and Van Hollen are both co-sponsors of S. 3755 and have supported similar legislation in prior years. While we understand the rationale behind their support, we don’t agree that a “one size fits all” approach is appropriate on most issues, arbitration included. If industries are abusing arbitration, Congress may create narrowly tailored laws to address the bad actors, not institute a blanket prohibition against a process that is proven to work.
As such, the Association will be sending Senators Van Hollen and Cardin letters related to these bills as a reminder that “credit unions go to great lengths to make sure that their members feel like an equal party in all manners possible. The trust of our members is our main concern. With this in mind, we feel that arbitration is highly valuable.”
Join Our Mailing List
Keep up with the latest industry info, advocacy updates, member spotlights and upcoming events.