Kicking Credit Card Arbitration To The Curb

Almost every credit card requires customers to settle disputes through binding arbitration because they claim it’s cheaper and faster than going to court.

But consumer groups have complained long and loud about how unfair that is because the arbitration firms the credit cards hire almost always rule in their favor.

Now a lawsuit by the Minnesota attorney general has caused the two biggest arbitration firms to withdraw from credit card cases and could provide cardholders the chance to dispute their bills in court.

Not only can cardholders expect to get a fairer hearing from a judge, doing away with arbitration should make credit cards more willing to compromise and settle disagreements to avoid court costs and bad publicity. MORE