Facts Reveled in National Arbitration Forum Lawsuit Should Make You Want to Puke
The state of Minnesota recently filed a lawsuit against the National Arbitration Forum, the entity that claims to independently resolve consumer issues with creditors through binding arbitration.
We’ve known for year this is a well controlled scheme in which the outcome is all but certain when a case goes to arbitration, the consumer will lose.
In the lawsuit, download a copy here, it is made clear that the arbitration clauses are not only not designed to be at arms length, fair or impartial, but they are actually promoted as an effective collection tool to be used by creditors against consumers. If you have an hour of free time I suggest that you read the lawsuit and educate yourself about how secretive and perverse that arbitration has become as a collection tool rather than a fair and impartial process to resolve complaints.
The National Arbitration Forum’s solicitations to corporations often characterize the Forum’s arbitration services as a collections tool:
- “[M]any credit card issuers are using arbitration as a collection tool for both pre-charge off and post-charge off debt.” (E-mail to bank.)
- “The Arbitration Alternative: Using FORUM Arbitration in Collections.” (PowerPoint presentation to bank.)
- “How is arbitration currently used as a part of the collections cycle?” (PowerPoint presentation to bank.)
- “How can arbitration benefit the collections?” (PowerPoint presentation to bank.)
- “Using Arbitration for Collections & Recovery – Why It’s Effective.” (PowerPoint presentation to retail financing company.)
The National Arbitration Forum’s solicitations also claim that the Forum’s arbitration services provide an efficient and less costly way to collect debts:
- “With filing fees starting at $25, FORUM arbitration can be a quicker, more cost effective way to resolve collection disputes than traditional litigation.” (E-mail to bank.)
- “Finally, as I’m sure you are aware, more and more of the largest card issuers are using arbitration as an efficient, cost-effective tool to resolve disputes, including collection disputes.” (E-mail to bank.)
- “[Benefits of arbitration include a] marked increase in recovery rates over existing collection efforts.” (PowerPoint presentation to bank.)
- “Arbitration can save up to 66% of your collection costs. Arbitration can save your money and your time collecting delinquent accounts. Sixty-six percent, according to Corporate Cashflow. Saving the money you’ve been spending on court costs, attorney fees, and discovery.” (Advertisement.)
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