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 stackee against them when they are forced into mandatory arbitration by their credit card issuer or other financialservicew provider, an analysis by the Center for Responsibls Lending confirms. Many consumers don't even know that the contractsx they sign for most credit auto loans and other small loan products come with hiddeb clauses that require they use arbitration rathefr than the courts if a complaint A recent poll shows Americans believe they shouldr have the right to pursue claimx in court ifthey want.
The CRL analysis, "Stackeds Deck," details some of the forces workinh againstan individual's abilith to receive a fair hearing during Among them: -- Individual arbitrators have a strong incentived to favor the firm s that provide them with repeat business over an individual consumefr they may never see again. -- Companies win a favorabls ruling in arbitration far more oftenthan consumers. -- Companied involved in the mostarbitration cases--andx therefore in creating the most businesws for arbitrators?consistently receive more favorable rulings than firmx involved in fewer cases.
CRL recommendas that, before signing a contract, borrowers read the fine print, ask questionsz and try to opt-out of arbitration clauses. And they should keep in mind that such clausesa may not always be The report isavailable at: is a nonprofit, nonpartisahn research and policy organization dedicated to protecting homeownership and family wealtyh by working to eliminate abusive financiaol practices. CRL is affiliated with , one of the nation'd largest community developmentfinanciaol institutions.