Mandatory Credit-Card Arbitration Challenged

By The Dallas Morning News | Tribune-Review/Pittsburgh Tribune-Review, September 1, 2009 | Go to article overview

Mandatory Credit-Card Arbitration Challenged


The Dallas Morning News, Tribune-Review/Pittsburgh Tribune-Review


If you have a dispute with your credit card issuer, stockbroker or cellphone provider, chances are you'll have to resolve it through arbitration -- like it or not.

"The vast majority of consumer sales contracts include a provision requiring the consumer to waive his or her right to file a civil suit for damages or injuries involving the product," said Russell Budd, partner at Dallas law firm Baron & Budd. "They have to go through arbitration."

Arbitration is an alternative to going to court that, depending on whom you talk to, is either an efficient means for resolving disputes or a flawed process that's weighted against consumers.

In arbitration, a panel of arbitrators or a single arbiter will read your claim, study the evidence, weigh the arguments of both sides and render a binding decision.

Arbitrators' decisions can be appealed only in very rare circumstances.

"It is occasionally done successfully," said Richard W. Naimark, senior vice president at the International Center for Dispute Resolution at the American Arbitration Association. "The legal grounds are quite narrow."

Businesses say they favor arbitration because it saves legal costs, is more efficient and resolves disputes more quickly than a court.

"It doesn't have a lot of formal processes that you have in court, and it's a way to resolve a dispute, particularly smaller matters, that's less adversarial," said Lisa A. Rickard, president of the U.S. Chamber of Commerce's Institute for Legal Reform. "It does not have transaction costs and doesn't put a lawyer in the middle of it."

Plus, cases aren't prolonged because the outcome can't be appealed.

But consumer advocates oppose mandatory arbitration, saying the process virtually stacks the deck against consumers.

"It's horrible for consumers," Budd said. "If a consumer goes into an arbitration, they're going to be completely outgunned. The other side is going to be fully represented and they're not going to want a consumer claim to be granted against them because they sell these products and services to millions of people."

Consumers are often forced to agree to resolving any dispute through arbitration in order to receive services or products, according to the American Association for Justice, which represents trial lawyers.

"There is virtually no way to access the court system when you're under a forced arbitration clause," said Julia Duncan, associate director of federal relations for the lawyers group. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Mandatory Credit-Card Arbitration Challenged
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.