Report: Arbitration Stacks The Deck Against Consumers
By Jay Fleischman, New York Bankruptcy Lawyer on Sep 27, 2007 in General Bankruptcy Information
Public Citizen, a consumer watchdog, just published a new report showing that arbitration disputes between consumers and credit card companies overwhelmingly favor the companies. The report, “The Arbitration Trap: How Credit Card Companies Ensnare Consumers,” shows how credit card companies back consumers into a corner with mandatory arbitration provisions in credit card agreements.
The report focuses particularly on predatory practices in California, the only state that requires arbitrators to publicly disclose information about their practices. Even so, the report is useful as a window into the unfair, secret proceedings where for-profit arbitrators make the rules. Public Citizen’s research uncovered consumers who spent years fending off collection agencies, cleaning up identity theft messes and struggling to bounce back from credit rating hits.
In response to growing concern over arbitration practices, Sen. Russ Feingold (D-Wis.) and Rep. Hank Johnson (D-Ga.) have introduced legislation to protect consumers from mandatory arbitration: the Arbitration Fairness Act of 2007 (S. 1782 and H.R. 3010). Time will tell whether the bill goes anywhere, but I sure hope so.
Source: Press Release.
If you liked that post, then try these...
Handling Secured Debts in Colorado Bankruptcy by Bankruptcy Attorney
NC Rep. Mel Watt: Don't Use Credit Score In Figuring Car Premiums by Susanne Robicsek, North Carolina Bankruptcy Attorney
Federal Government Action to Prevent Foreclosures by Kurt O'Keefe, Attorney at Law
2 Trackback(s)
You must be logged in to post a comment.