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)