Crucial element missing from credit card reform
Credit card reform is in the offing, but there’s still one crucial element missing: Consumers still may have to give up their right to go to court whenever they get a new credit card.
Free Speech Radio News did a great piece on this. Reporter Leigh Ann Caldwell explains how mandatory arbitration clauses — which require customers to give up their right to go to court in the event of a dispute — are ubiquitous, especially in credit card contracts.
While some companies, like Bank of America, have decided to stop using mandatory arbitration clauses, that doesn’t fix the problem. In fact, we think companies are just trying to stave off legislation. You can hear her radio piece here.