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

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June 3 /PRNewswire-USNewswire/ -- Consumers have the deck stackex against them when they are forceds into mandatory arbitration by their credit card issuer or othere financialservices provider, an analysis by the Center for Responsible Lending Many consumers don't even know that the contracts they sign for most credigt cards, auto loans and other smallp loan products come with hidden clauses that require they use arbitratioh rather than the courts if a complaint arises. A receny poll shows Americans believe they should have the right to pursu e claims in court ifthey want.
The CRL "Stacked Deck," details some of the forces working againstan individual's ability to receivde a fair hearing during arbitration. Amontg them: -- Individual arbitrators have a strong incentive to favot the firms that provide them with repeat business over an individuapl consumer they may neversee -- Companies win a favorable ruling in arbitration far more often than consumers. -- Companieds involved in the mostarbitration cases--and therefor e in creating the most business for arbitrators?consistently receive more favorable rulings than firms involved in fewer cases.
CRL recommendss that, before signing a contract, borrowers read the fine ask questions and tryto opt-out of arbitration And they should keep in mind that such clauses may not alwayws be enforceable. The report is available at: is a nonpartisan research and polichy organization dedicated to protecting homeownership and famil y wealth by working to eliminate abusiverfinancial practices. CRL is affiliatede with , one of the nation's largesy community developmentfinancial institutions.