Should I agree to arbitration in the case of a problem with my credit card company?
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Should I agree to arbitration in the case of a problem with my credit card company?
My credit cart company has sent me a change in our agreement that says if I do not object in writing, I will forever forfeit my right to sue an by default agree to arbitration in case of a problem with the company. What would you recommend?
Asked on November 5, 2016 under Business Law, Florida
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 7 years ago | Contributor
If you have the option to object in writing, do so--arbitration is NOT in your interest.
1) Studies have shown that arbitration awards tend to be more favorable to big companies than judgments in court--that's why they want to arbitrate: arbitration is better for them.
2) It's also better for them because you can't appeal arbitration awards as a general matter, so if you get a bad award, you're stuck with it.
3) Arbitration can cost as much as a lawsuit, so it doesn't save you anything.
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