Friday, April 25, 2008

More "Greedy" Corporations

U.S. Appeals Court Orders New Trial In Credit Card Case.

A U.S. appeals court reinstated a class-action suit on Friday against a group of banks that force their credit card customers to use arbitration instead of the courts to settle disputes.

The credit cardholders "alleged that the banks (with other co-conspirators, including American Express (AXP.N: Quote, Profile, Research) and Wells Fargo (WFC.N: Quote, Profile, Research)) illegally colluded to force the cardholders to accept mandatory arbitration clauses in their cardholder agreements," according to the ruling by the 2nd U.S. Circuit Court of Appeals.

I couldn't find any materials related to the case, but I'd be curious to read the decisions thus far along with the briefs. Other than the fact that all the credit card companies named have similar policies, is there any actual evidence of collusion? And more importantly, what the hell is wrong with mandatory arbitration. These are credit card companies, not charities- plenty of contracts have arbitration clauses, so why should credit cards be any different? (For the sports fans out there, every single major professional sport tends to rely on arbitration to resolve disputes.) If you don't like the terms of the contract, don't get a credit card. I swear, litigation like this comes from people's attitudes that they ought to be entitled to money that's not theirs, all on their own terms.


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