Consumerist
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arbitration
Powerful People Want To Hear Your Arbitration Horror Stories
If you've been screwed by arbitration, our consumer and public interest friends in DC would like to hear your story for something special they're cooking up. Arbitration agreements are clauses inside many contracts between companies and yourself that, in the event of a dispute, prohibit you from suing the company in a court of law. Instead, you have to take your case to a special arbitration firm. Arbitration bills itself as a speedy and fair way to resolve legal disputes, but it's come under heavy fire recently for being heavily weighted in favor of companies. If you've gotten the short end of the stick, send your story to arbitration.stories@gmail.com.
(Photo: Getty)
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lawsuits
AT&T's Arbitration Clause Strips Consumers Of Their Rights
We just love the word unconscionable. You know who doesn't love it? AT&T. Their mandatory binding arbitration clause was ruled unconscionable by the state Supreme Court of Washington, after AT&T tried to prevent a consumer who believed he was being systematically overcharged from filing a class action lawsuit. More » -
att
Washington Upholds ATT Customer's Right To Class Action
In another step towards the impending demise of mandatory binding arbitration, a customer's right to file a class-action lawsuit against AT&T Wireless was upheld by Washington Supreme Court yesterday. More » -
opinion
Let's Face It: Mandatory Binding Arbitration Sucks
A few days ago a "big business" lawyer wrote an opinion piece in the Wall Street Journal suggesting that those mean old people in the government were trying to take away your right to arbitration. How dare they! More » -
arbitration
Mandatory Binding Arbitration Still Sucks
BusinessWeek has published a pretty substantial cover story on arbitration, and why it disadvantages consumers. Consumerist readers will be familiar with many of the story's criticisms: one study finds 99.8% of arbitration cases are decided in the corporation's favor, some arbitration firms market themselves to companies as a sympathetic and partial judge, the arbitration process is intentionally structured to handicap consumers, and more. More » -
survey says
81% Of Americans Hate Mandatory Binding Arbitration
According to science, even the President is more popular than mandatory binding arbitration. A recent poll shows that Americans hate everything about the extrajudicial resolution system, from its inescapable omnipresence, to its unappealable decisions that rob consumers of their day in court. The poll provides a refreshing contrast to a different study commissioned by the U.S. Chamber of Commerce, which found that Americans love mandatory binding arbitration more than pie. More » -
arbitration
Arbitration Mill Sued By San Francisco
A San Francisco attorney has sued the National Arbitration Forum for being biased towards credit companies and ignoring consumer rights.
In 2004, the suit alleges, California resident Elizabeth Marcotte was hit with a $25,0000 award, plus $10,000 in attorneys' fees, in a credit-card collection case. But Ms. Marcotte allegedly wasn't notified about the arbitration, because she was served at an old address, even though she had notified the credit-card company of her new address. The NAF awarded the attorneys' fees without requiring proof that the debt collector actually incurred the fees, according to the suit. Ms. Marcotte wasn't reached for comment.
NAF is the same company that once decided that a 61-year-old identity theft victim owed $46,000 to a bank she never actually did business with.In another credit-card collection case, the NAF allegedly entered an award against California resident John Sheakley, without responding to his request to appear at a hearing and explain why he didn't owe the purported debt to a bank that was a predecessor of FIA Card Services.
San Francisco Sues Provider of Arbitrators [WSJ via U.S. PIRG Consumer Blog] -
consumer rights
Said No To The Doctor's Arbitration Agreement
Today I successfully objected to an arbitration clause and was still able to get the service. It was for acupuncture. I was filling out all the blah blah forms and then I came across the arbitration agreement. I wasn't even planning on this, I just saw it and got really uncomfortable. More » -
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lawsuits
Class Actions: T-Mobile's Mandatory Arbitration Clause Ruled "Unconscionable"
A class action lawsuit can proceed in Washington after the Ninth U.S. Circuit Court of Appeals ruled T-Mobile's mandatory binding arbitration clause "unconscionable and unenforceable under Washington state law." More » -
A critical look at the veracity of the claims mentioned in "Mandatory Binding Arbitration Means Alleged Halliburton Rapists Could Go Free" [Overylawyered]
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lawsuits
Mandatory Binding Arbitration Means Alleged Halliburton Rapists Could Go Free
A woman who filed a civil lawsuit against Halliburton for being the victim of a gang rape by her coworkers in Iraq will have her day in court, kangaroo court, thanks to the mandatory binding arbitration clause in her employment contract. Jamie Leigh Jones says she was drugged and raped by her fellow workers, then imprisoned inside a shipping container and left without food or water until the US embassy came to rescue after the State Department got calls from her father. She says she was told she would be fired if she sought medical treatment. More » -
news from the swamp
Liveblogging The Senate Judiciary Subcommittee Hearing On The Arbitration Fairness Act
Join us at 9:30 as we liveblog the Arbitration Fairness Act's second hearing before Congress. Arbitration is an extrajudicial jury-free way to resolve disputes where decisions are handed down by arbitrators who rule against consumers in 98.4% of cases. The Senate Judiciary Subcommittee on the Constitution will be considering S. 1782, an Act to banish mandatory binding arbitration from consumer disputes.
An October hearing on companion legislation in the House Judiciary Committee quickly devolved into a sob story, with three consumers sharing in horrifying detail how arbitration left them financially ruined. Today's hearing will be comparatively sedate, featuring one panel of academics and lawyers.
Join us at 9:30 as the professionals slice and dice the wonderful and evil qualities of the most anti-consumer practice allowed by law—for now.
(Photo: xsparrowx)
9:32: Video Link - Constitution Subcommittee hearing to examine S. 1782, to amend Chapter 1 of Title 9 of the United States Code with respect to arbitration. Coverage begins momentarily. Oh Congress, you could de-sass anything.
9:34: Here we go. Senator Feingold (D-WI) is chairing the hearing, already decrying our lost right to jury trials. More » -
news from the swamp
Liveblogging The House Judiciary Subcommittee Hearing On The Arbitration Fairness Act
Consumers may finally escape from the clutches of mandatory binding arbitration if the House Judiciary Committee smiles favorably today upon the Arbitration Fairness Act. Arbitrators rule against consumers in more than 98% of all disputes; the Subcommittee on Commercial and Administrative Law is currently meeting to consider H.R. 3010, which would restore consumers' rights to resolve disputes fairly and openly.
Today's hearing will feature two panels. Four separate law firms will testify, along with the American Arbitration Association and Public Citizen. Join us as we struggle to interpret the Committee's legalese - which may prove just as futile as binding arbitration.
(Photo: xsparrowx)2:00: Video Link
2:05: Today's commentary is brought to you by both Carey and Meghann in the hope that two pairs of ears will be able to decipher the Committee's legalese.
2:41: FINALLY! The hearing has been called to order. More » -
mandatory binding arbitration
National Arbitration Forum Decides 61 Year Identity Theft Victim Owes $46,000
Yahoo! Finance has a horrible story about a 61 year old lady living on $759 a month Social Security whose credit card was stolen and it ended up with the National Arbitration Forum (NAF) deciding she owed them $46,000. More » -
confessions
Arbitration Firms Are Godless Bloodsuckers
In 2006, Richard Neely, a retired chief justice of the West Virginia Supreme Court, penned an article for The West Virginia Lawyer entitled, "Arbitration and the Godless Bloodsuckers." The National Arbitration Forum asked him to be an arbitrator one time and Neely described his experience:
"[T]he bank asks for substantial costs related to the arbitration itself, and those costs are significantly higher than court filing fees. . . . In one case that I handled, the fees alone amounted to $450. Furthermore, the arbitration company sends the arbitrator a judgment form already filled out so that all the arbitrator need do is check the appropriate box... In my case I did not award the bank the litigation-related fees. . . . I never got another case!"
Full article inside... More »
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credit cards
Arbitration Firm Rules Against Consumers 95% Of The Time
A popular arbitration firm, the National Arbitration Forum, only finds in favor of consumers 5% of the time, a new study released today by advocacy group Public Citizen reports.
The 8-month analysis of 34,000 cases decided by the National Arbitration Forum over a four year period found:
- 188 of the cases were brought before NAF by consumers, 99.6% by corporations
- On one arbitrator's busiest day, assuming an eight-hour workday, he decided a case once every seven minutes. 100% of those were in favor of the business, awarding 100% of the request money.
- 28 NAF arbitrators handled about 9 out of 10 of the cases, ruling for business 95% of the time.
- 120 other arbitrators handled 10% of the cases, ruling for businesses 86% of the time.
"Binding mandatory arbitration is a systematic, privately funded denial of justice for consumers," said Laura MacCleery, director of Public Citizen's Congress Watch division. "It is a get-out-of-jail-free card for corporate hucksters."
The Arbitration Trap: How Credit Card Companies Ensnare Consumers (PDF) [Public Citizen]
Raw data (XLS)
(Photo: Getty) -
consumer action
9 Reasons To Ban Mandatory Binding Arbitration
Mandatory binding arbitration is great for businesses to use in dealing with one another, but it sucks for consumers. Here's 9 ways you get screwed in arbitration land, courtesy of the National Association Of Consumer Advocates... More » -
contracts
Opt Out Of E*TRADE's Arbitration Clause
Reader Jeff perused the contract for his new E*TRADE account and found not only a big wonkin' arbitration clause in there, but a successive clause actually giving you a chance to opt out of it and retain your rights to not have disputes moderated in a corporate monkey court beyond the reach of law. More »
mandatory binding arbitration
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Fri Jan 9
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