Even if, for example, the parties to the arbitration proceedings come to the table with their own legal representation, the cost of such representation, which is relatively short, tends to be lower than that of an average dispute. This study gives considerable weight to the long-standing criticism of forced arbitration as a sneaky instrument to prevent consumers from defending their rights. Academic studies show that compulsory arbitration is indeed a rigged system that is in favour of companies. The researchers found that companies like JPMorgan Chase regularly select arbitrators who are known to decide in favor of companies because arbitrators know that the more they decide in favor of companies, the more likely they are to be selected for future business and earn future paychecks. These professional arbitrators, whose previous decisions have been made in favor of companies, are chosen with a probability of about 40% greater by companies than arbitrators who show sympathy for consumers. The latest research shows that forced arbitrations are patently unfair. “The data shows that trade-offs are often faster and cheaper and with better outcomes for our customers,” she said. If you have a Chase credit card, you have about a week left to opt out of an arbitration clause that will be sent to customers starting at the end of May. If cardholders do not reject the binding arbitration clause within the time limit, they cannot join a class action and must have their dispute resolved by an arbitrator.
Consumer advocates have expressed serious concerns about Chase`s return to forced arbitration. Chase will let existing customers get out of the clause, but it won`t be easy. Cardholders must do so in writing by sending a letter to Chase rejecting the arbitration agreement and indicating their name, account number, address and signature, according to Fast Company. Letters must arrive by August 7, 2019. The military is already legally exempt from forced settlement clauses…