The credit card binding arbitration system is crumbling

[tylerdee]

Two more supporting beams have crumbled and now, with astonishing speed, the entire edifice of the mandatory credit card arbitration system is collapsing. A second major arbitration firm -- the American Arbitration Association -- said Tuesday that it has suspended all consumer arbitration activities. And JPMorgan Chase, one of the nation's largest credit card issuers, announced Wednesday that it would stop filing such claims against consumers.

Article:
www.creditcards.com/credit-card-news/credit-card-binding-arbitration-system-crumbling-1282.php

Subcommittee Hearing
domesticpolicy.oversight.house.gov/story.asp?ID=2551

Good luck to the US court system trying to keep up with the lawsuits.

[LiberalFighter]

1. Below is the key reason why consumer arbitration was suspended. In 3 words... CONFLICT OF INTEREST

Minnesota Attorney General Lori Swanson ignited the swift cascade of developments by filing suit July 14 against the National Arbitration Forum, which she accused of deceiving credit card customers and other consumers as it handled more than 200,000 billing or collection disputes a year.

She said the company claimed to be a neutral arbiter but was, in fact, affiliated with one of the nation's largest debt collection agencies. In addition, the suit alleged, NAF maintained close ties to credit card issuers.

[phantom power]

2. Not good.

I'm shooting from the hip here, but if credit cards become untrustworthy to either consumers or to merchants, the entire on-line merchant industry is in immediate danger. Credit cards are a major component of our economic infrastructure, for better or worse.

Anybody else having a similar reaction?

[Big Blue Marble]

3. If........?

You think that credit card companies are considered trustworthy now?

Yes they have insinuated themselves deeply into our economy. And are
very helpful if used appropriately. But trustworthy? You use plastic
at your own risk.

[qb]

4. I make all of my purchases with my VISA debit card and track my spending very closely.

After seeing how the credit card companies manipulate interest rates and how Congress has shown no motivation to effectively regulate them, I plan to never have another credit card. If everyone did that, sales would drop some, but we'd all be much better off.

[Robbien]

5. There wouldn't be any more lawsuits. This will stop credit card companies from stealing

from their customers and then winning their case in forced arbitration.

Customers only sue when credit card companies steal from them. With this "license to steal" forced arbitration system taken away from credit card companies, the companies will have to stop stealing or face the consequences.

[dixiegrrrrl]

6. Great.!!!! Insurance, utility companies next, I hope.