We applaud the recent actions of Bank of America, the third- largest credit-card company in the country. Bank of America recently announced that it would no longer require disputes between it and its customers to be decided by binding arbitration. This change in position also covers auto, recreational vehicle and marine loans. Consumers with loans or credit agreements with Bank of America can now pursue their claims in court and not be forced to submit those claims to arbitration.
Two of the largest arbitration groups, The American Arbitration Association and the National Arbitration Forum, decided last month to stop accepting consumer-debt-collection cases.
All of these decisions are positive developments for consumers. Forced arbitration robs consumers of their right to go to a local judge or jury and seek justice. Some estimate that companies prevail in 94% of all cases submitted to arbitration. As an attorney who has represented consumers who were bound by arbitration agreements, I applaud Bank of America’s decision and call on other financial institutions to do the same.
Richard J. Arsenault, 2011
