Posted Jul 24, 2009 09:52 pm CDT
One of the country’s major banks has blinked after announcements by two well-known groups that they would no longer participate in mandatory arbitration in which consumers are required to participate under the boilerplate terms of credit card agreements.
JPMorgan Chase says it will no longer arbitrate such disputes and is re-evaluating the mandatory arbitration provisions in its credit card contracts, reports the Wall Street Journal Law Blog. The post relies on original reporting on the creditcards.com website.
“This is the beginning of the end for forced arbitration in all consumer contracts,” predicts Ed Mierzwinski of U.S. Public Interest Research Group, a consumer advocacy federation.
Related earlier coverage:
ABAJournal.com: “Logistical Issues for Banks After AAA Pulls Out of Consumer Arbitration”
ABAJournal.com (2008): “Credit Card Cos. Can Be Sued for Forcing Arbitration, 2nd Circuit Says”