Consumers lose out with arbitration clauses

“Consumers have the deck stacked against them when they are forced into mandatory arbitration by their credit card issuer or other financial services provider, an analysis by the Center for Responsible Lending confirms.”

  • Individual arbitrators have a strong incentive to favor the firms that provide them with repeat business over an individual consumer they may never see again.
  • Companies win a favorable ruling in arbitration far more often than consumers.
  • Companies involved in the most arbitration cases—and therefore in creating the most business for arbitrators─consistently receive more favorable rulings than  firms involved in fewer cases.”

Article:

Advertisements

Tags: ,

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


%d bloggers like this: