Center for Responsible Lending's blog
Center for Responsible Lending's blog
Forced Arbitration Denies Consumers a Fair Hearing
Center for Responsible Lending
June 4, 2009
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.
Many consumers don't even know that the contracts they sign for most credit cards, auto loans and other small loan products come with hidden clauses that require they use arbitration rather than the courts if a complaint arises. A recent poll shows Americans believe they should have the right to pursue claims in court if they want.