The Arbitration Trap: How Credit Card Companies Ensnare Consumers

Source: John O’Donnell, Public Citizen, September 2007

From the summary:
This report details how arbitration firms and credit card companies enjoy a cozy, mutually beneficial relationship at the expense of consumers they force into binding mandatory arbitration. Using data from California, the findings provide a glimpse of how arbitration traps consumers throughout the country in 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.
• Read the press release
• Read our news coverage
• Read the testimony of Laura MacCleery [pdf] before the House Judiciary Subcommittee on Commercial and Administrative Law regarding the Arbitration Fairness Act of 2007
• Read Public Citizen’s rebuttal to industry’s misleading statements about the report.
• Read our fact sheet on the Arbitration Fairness Act of 2007
• Read a letter of support of the Arbitration Fairness Act of 2007 signed by 32 groups
• Take action now
• Learn ways to protect yourself
• Read the blog
• Read the statement of Joan Claybrook, Public Citizen President
• Read the statement of Laura MacCleery, Director of Public Citizen’s Congress Watch
• Read the statement of Troy Cornock, victim of binding mandatory arbitration
• Read the statement of Sen. Russ Feingold (D-Wis.), sponsor of Arbitration Fairness Act of 2007.
• Read our bibliography of law review articles critiquing binding mandatory arbitration
• Examples of BMA clauses from MBNA (April 2006) and JPMorgan Chase & Co. (2005)
• NAF California data Jan. 2003 to Mar. 2007* [Excel file]

Leave a Reply