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]
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