2014 The Year Ahead Pt 2

Debt Arbitration

Coming Changes to Arbitration?

Deep in the small print in many credit card and other loan contracts is usually the statement that the consumer agrees in advance to give up their right to sue, either individually, or in a class action law suite.

Dodd-Frank required that the Consumer Financial Protection Bureau study the sue of this type standard languages, and they have the power to issue legislation around it.

“If there’s one issue that consumer groups are really upset about it is the rising use of binding mandatory arbitration, which the Supreme Court has unfortunately blessed in a number of recent cases,” said Adam Levitin, a Georgetown law professor, who sits on the agency’s advisory board, an unpaid position.

The US Public Interest Research Group has offered the opinion that this might be one of the most important issues that the agency will handle this year.

“The biggest thing we are hoping for in 2014 is to finish or at least make major progress with the arbitration rule and ban forced arbitration in consumer contracts,” he said. “In many of these cases you are ripped off for $10 or $100 each. But millions of consumers are ripped off. That’s why we think it’s a very big deal.”

As Florida Debt Collection Attorneys, it is our job to watch these developments, and advise our clients not to offer an opinion of good or bad. The law, will be, the law. We will watch these developments closely.

If you are concerned how these upcoming changes will impact you and your business. it’s time to to strike up a relationship wth Florida’s premier Debt Collection Attorneys, Marcadis Singer, PA.