Reasons For Arbitration Agreement

One-shot players in consumer contract disputes are often at a numerical disadvantage in arbitration proceedings, as they may lack the experience and resources to mount a strong argument. If you are in dispute with your mobile phone company about a late payment, for example, you could also be the underdog in any arbitration that followed. [1] See the Wall Street Journal article, which states that the National Arbitration Forum preferred certain repeat professional customers to consumers and even instructed arbitrators to overturn consumer-friendly decisions. As mentioned above, the Consumer Financial Protection Bureau conducted a study on mandatory arbitration in the consumer financial sector, as provided for by the Dodd-Frank Wall Street Reform and Consumer Protection Act. In addition to commissioning this study, Dodd-Frank also gives the CFPB the power to limit or prohibit mandatory arbitration procedures in consumer financial contracts. The GFPB examines whether class appeals in mandatory arbitration agreements are prohibited on the basis of the results of its study. If it prohibits mandatory arbitration, it would eliminate the practice in the consumer and finance industry and would have a significant impact on credit card contracts and other consumer debt contracts. If there is a way, without compromising your job, to indicate that you are only signing the document to keep your job rather than voluntarily agreeing to a conciliation, then do so. However, you must carefully balance your interest in challenging the directive with your interest in maintaining your employment, so that you wish to consult a lawyer before taking this action. The scrupulous nature of the content examines the fairness of the trial in the context of the agreement in relation to what would otherwise be the case in the public justice system. Does the arbitration provision remove some of the rights that could have been invoked in court, such as. B a request for a penalty that, according to the law, could be available for late payment of wages? Or does the arbitration provision remove remedies that might otherwise be available? These and other similar issues constitute a restriction on the worker`s material rights and may be unacceptable on the merits.

Another important finding of the CFPB study is that most consumers are unaware that they have binding arbitration agreements. Three-quarters of consumers surveyed in the study were unaware that their credit card agreement contained a compromise clause. Misunderstandings were also widespread. Less than 7 per cent of consumers knew they were covered by an arbitration agreement that prevented them from taking legal action.

Kontakta oss