The arbitration rollback continues apace! Last Thursday, JPMorgan Chase announced it won’t send disputes to arbitration and is rethinking putting the clauses in its consumer contracts. Coming on the heels of news that NAF and AAA will stop arbitrating consumer credit card disputes, Creditcards.com wrote, “Two more supporting beams have crumbled and now, with astonishing speed, the entire edifice of the mandatory credit card arbitration system is collapsing.”
The sudden and massive retreat was in advance of forthcoming Congressional action and lawsuits, in particular, an acid-toned suit filed by MN’s AG last week, the main catalyst for the cascade of pullbacks.
Will the courts now be clogged with consumer lawsuits? Not so, says PIRG’s Ed Mierzwinski, “It won’t lead to more lawsuits… It will lead to a fairer marketplace.”
Credit card binding arbitration system crumbling [CreditCards.com] (Thanks to Keith!)
PREVIOUSLY: Another Arbitration Firm Pulls Out Of Credit Card Arbitration
National Arbitration Forum Exits Credit Card Dispute Business
Minnesota Attorney General Punches National Arbitration Forum In The Face
The Arbitration Fairness Act Is In The House