Quote:
Originally Posted by MRM
Arbitration clauses on bank accounts and credit cards aren't entirely bad. They can reduce the cost of litigating a small claim to the point that the card/account holder can afford to fight the case and get a fair shake wth a neutral arbitrator. The question is who appoints and pays for the arbitrator and is he really neutral.
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In fact, the footnote explicitly states that matters brought before small claims courts are exempt. I'd be glad to post the whole footnote, but it is lengthy and the print is small.
It specifically mentions class action, and I believe this is a matter of banks trying immunize themselves against class action suits against the systematic screwing of their customers that banks have found so bothersome in the past 20 years. They want to make sure whatever scheme they come up with next will not be hampered by pesky claims of fraud and deceit.