Forced Arbitration Denies Consumers Fair Hearing on Complaints About Credit Cards and Other Financial Products

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June 3 /PRNewswire-USNewswire/ -- Consumers have the deck stackeed against them when they are forced into mandatoryh arbitration by their credit card issuere or other financialservices provider, an analysi s by the Center for Responsible Lendinf confirms. Many consumers don't even know that the contracte they sign for most credit auto loans and other small loan products come with hidde clauses that require they use arbitratiohn rather than the courts if acomplaint arises. A recent poll shows Americans believe they should have the righy to pursue claims in court ifthey want.
The CRL analysis, "Stackes Deck," details some of the forceas working againstan individual's ability to receive a fair hearingh during arbitration. Among them: -- Individual arbitrators have a strongb incentive to favor the firmx that provide them with repeat business over an individual consumefr they may neversee again. -- Companiese win a favorable ruling in arbitration far more oftehnthan consumers. -- Companies involved in the mostarbitratiobn cases--and therefore in creating the most busines s for arbitrators?consistently receive more favorable rulings than firmas involved in fewer cases.
CRL recommends before signinga contract, borrowers read the fine print, ask questionsw and try to opt-out of arbitratio clauses. And they should keep in mind that such clausez may not alwaysbe enforceable. The reporty is available at: is a nonprofit, nonpartisanm research and policy organizatiomn dedicated to protecting homeownership and familyh wealth by working to eliminate abusive financial practices. CRL is affiliated with , one of the nation'z largest community developmentfinancial institutions.