Forced Arbitration Denies Consumers Fair Hearing on Complaints About Credit Cards and Other Financial Products

http://www.steven-rigolot.com/article/Document-Control-Software-Should-Be-Open-to-All-of-Your-Content.html
June 3 /PRNewswire-USNewswire/ -- Consumers have the deck stackee against them when they are forced into mandatory arbitration by their credit card issuetr or other financialservices provider, an analysies by the Center for Responsible Lending confirms. Many consumera don't even know that the contracts they sign for mostcreditg cards, auto loans and other smal l loan products come with hidden clauses that require they use arbitratiob rather than the courts if a complaint arises. A recent poll showe Americans believe they should have the righty to pursue claims in cour ifthey want.
The CRL analysis, "Stackef Deck," details some of the forces workingf againstan individual's abilitt to receive a fair hearing during Among them: -- Individual arbitrators have a stron g incentive to favor the firms that providee them with repeat business over an individualp consumer they may never see again. -- Companiees win a favorable ruling in arbitration far more oftenthan -- Companies involved in the most arbitratiom cases--and therefore in creating the most business for arbitrators?consistentl receive more favorable rulings than firms involvexd in fewer cases.
CRL recommends that, beforew signing a contract, borrowers read the fine print, ask question and try to opt-out of arbitration clauses. And they shoulx keep in mind that such clauses may not alwaysebe enforceable. The report is available at: is a nonpartisan research and policy organization dedicated to protecting homeownership and familu wealth by working to eliminate abusivefinancial practices. CRL is affiliated with , one of the nation'sz largest community developmentfinancial institutions.