NY Reinstates Credit Card Lawsuit
If you don't like pre-dispute, binding mandatory arbitration in credit card agreements, just go with a company that doesn't require it...
Um, yeah, that's what these guys tried to do. They couldn't, so they pursued justice through the civil courts.
From Newsday, a lawsuit reminiscent of Maxed Out, the movie and the book. The gist: credit card holders sued a bunch of banks, including Bank of America, Capital One Bank, J.P. Morgan Chase & Co., Citigroup Inc., Citibank, Universal Bank and MBNA America Bank, alleging collusion to universally impose pre-dispute binding mandatory arbitration on credit card holders. The class action plaintiffs sought a court order telling the banks to stop imposing bma on consumers (injunctive relief), invalidating those that are already in force, and ordering the banks to withdraw any current arbitration actions raised under these binding mandatory arbitration agreements.
These consumers assert that by conspiring to impose binding mandatory arbitration on consumers, the banks inflicted anti-trust injury. They're basically saying that the credit card companies killed market-based competition amongst these big card companies, limited consumers' choice by eliminating their ability to shop around for non-bma cards, and diminished the quality of the service provided by reducing an effective incentive for banks to treat customers fairly.
Well, the class action was filed in 2005, then squashed, and now it has been reinstated by the New York State Court of Appeals.
Civil justice system: one point.