Bank Of America Leaves Mandatory Arbitration Behind

Another bank is ending mandatory arbitration for their customers. Not just any bank, either—it’s Bank of America!

Yes, that Bank of America is actually allowing credit card, loan, and banking customers to file lawsuits. They aren’t doing it due to a sudden change of heart, of course. National Arbitration Forum, which handled their disputes, is leaving the credit card business entirely after being punched in the face sued by the Minnesota Attorney General. Consumers are not terribly fond of arbitration.

Consumer advocates have faulted the arbitration process, saying it is biased in favor of companies and that consumers often do not realize they are waiving their right to sue when they accept services. Supporters of arbitration say the process can be faster and less costly than going to court.

“While the bank thinks arbitration is a very fair way to go, customers do not,” Bank of America spokeswoman Shirley Norton said. “It is in everyone’s best interest to change it. We’re hoping we’ll be able to resolve more disputes directly with our customers.”

Norton said the bank will review consumer cases already in arbitration on a case-by-case basis.

That’s one more big company down…maybe now even more will follow their lead.

Bank of America ends arbitration of card disputes [Reuters] (Thanks, Phil!)

PREVIOUSLY:
Arbitration May Be Dead, But Courts Offer Imperfect Alternative
Credit Card Arbitration Cabal Implodes
Another Arbitration Firm Pulls Out Of Credit Card Arbitration
Minnesota Attorney General Punches National Arbitration Forum In The Face

(Photos: PJLewis and mrkathika)