Credit card debt arbiter target of three class-action suits - Bills.com News

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Credit card debt arbiter target of three class-action suits

Monday, Aug 3, 2009

A recent settlement between a credit card debt arbiter and a state attorney general hasn't stopped a number of consumers from filing their own lawsuits.

Minnesota Attorney General Lori Swanson and the National Arbitration Forum (NAF) reached an agreement recently in which the NAF would no longer take credit card debt arbitration cases. Now three, separate class-action lawsuits have been brought against the company.

The class-action suits have a similar scope tothe earlier suit, alleging the NAF had questionable ties to the credit card and debt collection industries. As a result of these ties, the suits claim the debt arbiter could not have given impartial rulings in the plaintiffs' credit card debt disputes.

The suits claim the NAF had credit card companies include arbitration
clauses in card agreements and also had card companies choose the NAF to be the judge in disputes. Furthermore, it has been alleged the NAF had financial ties to the debt collection industry.

After the settlement with the attorney general, the American Arbitration Association has said it will not take arbitration cases
until new guidelines are put forward.

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