Binding Arbitration Bad for Consumers

posted on:
November 5, 2007

author:
Staff

There have been recent efforts by federal legislators to impose binding arbitration in a variety of contexts. 

You may have never heard of Binding Mandatory Arbitration, but that would not prevent this unfair practice, visited on unsuspecting consumers, from destroying your life. Buried in the fine print of many consumer contracts for credit cards, new homes and cars are clauses that stack the deck against American consumers, forcing you to give up your rights to seek justice through the courts. And these contracts force you to surrender your rights before a dispute even occurs.

Binding Mandatory Arbitration prevents defrauded or wronged consumers from taking their cases to court. Instead, their cases are decided by arbitrators who are not bound by the rules that ensure consumers get a fair shake in the civil justice system. Their cases are never heard by a judge or jury and the arbitrators decision is usually impossible to appeal.

Currently, most Americans are bound by at least one Binding Mandatory Arbitration clause, often without their knowledge. Each day more home buyers, credit card users, insurance holders, and car buyers are forced to give up their constitutional right to have their case heard by a jury of their peers. So when powerful business interests take advantage of them, they are left with no recourse or remedy to recover their losses.

Do not get stuck the next time you apply for a credit card, buy a car or sign a contract for a new home. Do not let big corporations push you around.

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