Released: September 28, 2007

Binding arbitration a loser for consumer

Source: Phuong Cat Le, Seattle PI

Just about everyone who has a credit card, a cell phone or a job has likely agreed to take grievances to binding mandatory arbitration.

But how often do consumers win when they go up against credit card and finance firms? Not very often, according to a study released Thursday by a consumer advocacy group.

In a review of 34,000 arbitration cases, Public Citizen said that companies initiated nearly all of the cases and used arbitration firms that they know will rarely rule in favor of consumers.

The report focused specifically on cases handled in California by Minneapolis-based National Arbitration Forum. California is the only state that requires arbitration companies to publicly disclose details of arbitration cases.

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