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June 05, 2008

Business Week cover story-- banks vs. consumers (mandatory arbitration)

0824covdx.jpgThe new Business Week is out with a cover story Banks vs. Consumers (Guess Who Wins). The story is about how big credit card banks use the arbitration firm known as the National Arbitration Forum to collect debts, even from consumers such as identity theft victims, who never owed the bank money. The lede:

What if a judge solicited cases from big corporations by offering them a business-friendly venue in which to pursue consumers who are behind on their bills? What if the judge tried to make this pitch more appealing by teaming up with the corporations' outside lawyers? And what if the same corporations helped pay the judge's salary?
One sided, unfair pre-dispute mandatory arbitration clauses are the subject of intensive Congressional scrutiny. Congress is looking at them as they occur in credit card contracts, employment contracts, nursing home contracts and small farmer agreements with big agribusiness firms (previous blog).

Posted by Ed Mierzwinski at June 5, 2008 06:08 PM


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