 ScottMoOnce in a LifetimePremium,MVM
join:2000-12-15
Stony Brook, NY | Flawed jouralism The "proof" that arbitration is more favorable to companies than to be individuals shouldn't be used.
First the report reads:
Major Arbitration Firm in California Rules Against Consumers 94 Percent of the Time, Uses Arbitration as Debt Collection Mechanism, New Report Shows And that somehow morphs into "The report stated that one arbitration outfit frequently used by credit card companies ruled in favor of its corporate clients 95% of the time, if not more". That's not what it said. How did 94% become "95% of the time, if not more"
And secondly (and more to the point) the cases that were brought to arbitration were largely by the credit card companies (or those who bought debt from them) as a means of collecting debts and that those debts were the ones the credit card companies were sure they were going to win. So, the Public Citizen report shows that if you default to a credit card company and go to arbitration, you're most likely going to lose. Key word is "default". If a consumer defaults on a credit card balance, chances are they're going to lose in arbitration. So how does that extrapolate into "eroding your rights"? It doesn't. |
 cdruGo ColtsPremium,MVM
join:2003-05-14
Fort Wayne, IN
kudos:5
 ·Frontier FiOS
| Hey now. The general public shouldn't be concerned about the facts of the hearings. All they need to know is a cliff note summary of FUD.
I thought pretty much the same thing when I read the summary above. Just because an arbitrator finds one way an overwhelmingly high percentage of the time doesn't necessarily mean that something is wrong.
I would expect arbitration for defaulted credit cards to mostly go with the credit card companies. By the time that arbitration (or a lawsuit) would be necessary the CC company has already looked at 1.) do they really think that they are right, 2.) do they think that they can win, and 3.) if they do win, will they have a chance to get any of the money that they do win. If any of the questions aren't sufficiently affirmative, then they may just write it off, make a settlement, etc. It may never even get to arbitration. |
