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Credit Card Conundrum

One of my credit card companies -- USAA -- just sent me a notice proposing a requirement for arbitration of disputes between us. I think (hard to understand all the legalese) that this applies to any dispute between me and them or their agents. It would exclude the possibility of a judge or jury trial, discovery, class action participation and similar methods of conflict resolution.

Either they or I could choose to use Small Claims court, provided the amount is and remains within the jurisdiction of that court.

I have the option of rejecting this arbitration clause. Otherwise it will go into effect automatically on Jan 1, 2007.

I've never had any disputes with the company, and I'm not certain where my best interests lie.

Opinions?

Thanks.

--ron

Reply to
Ron Rosenfeld
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if you reject it and find yourself in a dispute later, they will likely agree to arbitration then if you want. So why commit now?

Reply to
Gil Faver

"Gil Faver"

Reply to
BreadWithSpam

That is clearly NOT the case in this instance. Wording of the notice is very clear in that regard.

The fact that "almost all" do that doesn't really help me in making a decision about this specific case.

Why would you not worry about it, when it is optional?

What are the benefits to me of accepting this required arbitration, given that the use of the card is unrestricted should I choose to reject the arbitration clause?

--ron

Reply to
Ron Rosenfeld

There are no benefits to you.

You are sacrificing your legal rights.

This matter is called "Binding Mandatory Arbitration" or some such, and it has been the source of controversy for several years now.

Consumer groups advice against it.

The arbitrators who oversee any hearings under this agreement are usually handpicked by the companies themselves.

This is a way business evades American legal protections.

But with certain institutions, like banks and credit card companies, you have no choice if you want the account.

Other types of businesses, like car dealers, will also try to get you to sign these agreements, but that would be unwise.

sarpesius

R>

Reply to
the_sarp

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