Maryland Consumer Rights Coalition Urges Attorney General to Investigate National Arbitration Forum

July 15, 2009

The following is excerpted from a Maryland Consumer Rights Coalition blog post.

The Maryland Consumer Rights Coalition today asked Maryland Attorney General Douglas F. Gansler to investigate the practices of the National Arbitration Forum (NAF.)

The Minnesota Attorney General sued NAF yesterday for allegedly using illegal and dishonest practices that harm consumers.

NAF also operates in Maryland and its practices affect many people in our state, though most are unaware of its existence.

Many credit card companies, retailers, banks, and communication companies insert into the fine print of their agreements Âmandatory pre-dispute arbitration clauses,Â whereby consumers waive their right to have their day in court if a dispute arises.

Instead, typically without knowing it, the consumer agrees that any dispute will be resolved by an arbitration forum selected by the credit card company or other creditor. Increasingly, credit card companies, banks and others require that consumers arbitrate disputes through the National Arbitration Forum, which allegedly stacks the deck against the consumer.

The letter to Attorney General Gansler states, in part, ÂMCRC asks that you use your good offices to protect Maryland consumers from unfair, deceptive and illegal arbitration practices. This is an issue that most Marylanders are not aware of, but which has a significant impact on nearly every resident of our state because it touches nearly everyone who uses a credit card, signs a cell phone contract or opens a bank account.Â

Download the letter here.

For additional information on mandatory arbitration, visit www.fairarbitrationnow.org.

To read the Minnesota AGÂs press release, click here.

To download the Minnesota complaint, click here.