Friday, August 14, 2009

Bank Of America Drops Arbitration Agreements

The dispute over pre-dispute arbitration agreements between consumers and corporations continues, but the credit card issuers took a significant body blow last month when revelations were made about the National Arbitration Forum's involvement in the process.

Yesterday Bank of America announced that it is dropping a requirement that forces consumers with disputes on credit cards and other accounts into an arbitration process, which critics say favors card issuers.

The new policy applies to credit card, auto, marine and recreational vehicle loans, as well as deposit accounts, and means unhappy consumers will be able to file lawsuits against the bank to address perceived unfair or illegal activity.

No mention was made of the agreements in its retail brokerage customer accounts. More>>>
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