Kucinich announces agreement with banks to keep customer legal rights
Ohio Congressman Dennis Kucinich announced a new agreement with six major banks that will no longer have arbitration clauses on new credit card terms. The new terms come after hearings regarding clauses on credit card contracts that required cardholders to waive their right to a court hearing over disputes. Banks required cardholders to agree to arbitration, a process that has been shown to heavily favor banks rather than law.
“This holiday shopping season, consumers have the choice of using credit cards that don’t take away their legal rights,” a statement from Kucinich said. “In July, the House Domestic Policy Subcommittee…held a hearing in which we showed that mandatory arbitration is arbitrary, and that results depend more on the arbitrator to whom the case is assigned than on the face or the law that applies.”
JP Morgan Chase, CapitalOne, PNC Bank, TD Bank, Bank of America and Regions Bank have all agreed to no longer have arbitrations clause in credit card contracts. JP Morgan Chase and CapitalOne will both issue new credit card agreements to current customers that allow customers the right to a jury trial and to participate in class action law suits
