Sunday, August 16, 2009

Bank of America Announced It Will Halt Forced Arbitration

Finally, working families get some justice!

On August 13, the Bank of America Corp. (BOA) announced that it would no longer force arbitration of consumer debt. Recently, BOA settled a lawsuit brought by the Minnesota Attorney General to halt the unfair system that amounts to little more than "rigged justice," rigged in favor of credit card companies. In the past, BOA teamed-up with the National Arbitration Forum (NAF) in what amounted to "rigged justice" in debt collection cases. NAF and the American Arbitration Association (AAA) also agreed to stop forcing consumers to arbitrate in debt collection cases, a process that consumers rarely won.

The American Association for Justice Associate Director of Federal Relations, Julia Duncan said:

“While the decision by Bank of America to no longer rely on forced arbitration in consumer disputes is a positive step, it’s clear that Congress must intervene to protect consumers. Forced arbitration clauses are buried in the fine print of everything from credit card and cell phone contracts to employee handbooks and nursing home agreements. These clauses eliminate Americans’ access to the courts, forcing them instead into a private system set up by corporations to favor corporations. That is why Congress must pass the Arbitration Fairness Act and prohibit this abusive practice.”

To learn more about abusive forced arbitration clauses, see The Devil is In the Details - Forced Arbitration

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