Before signing up for a new credit card, scan through the fine print and search for the word “arbitration.” What you will find is that the company requires you to resolve all conflicts through a binding dispute resolutions process, rather than going to court.
These clauses are common among cell phone carriers, financial institutions and online service providers such as Netflix and Amazon. Some companies provide the option to opt-out of mandatory arbitration, if you act quickly enough. In fact, more than a quarter of the more than 400 credit card contracts analyzed by the Consumer Financial Protection Bureau included an opt-out provision.
For Citi Card customers, you may even have gotten a chance for a do-over. This past year, the issuer revised its customer agreements, giving them a new opportunity to opt-out of the company’s standard arbitration agreement.
As with many opt-out notices, instructions can be vague and time is of the essence. Here are some guidelines consumers should follow when requesting an opt-out.
- Follow instructions. Read the opt-out provision carefully and follow the instructions exactly. It is necessary to include enough information to identify the person and convey their intent to opt-out.
- Identify yourself. If the directions are vague, use a standard business letter format, with the date and address at the top. Include all pertinent details such as your account number, customer ID and your contact information.
- Be direct. Be as clear and concise as possible in your writing. If you go to court, the lawyers for the company will try and argue that you were not clear or did not mean what you said.
- Keep records. If an email option is given, use that. An email automatically generates a time stamp. If you do not need to send a physical letter, keep a copy for your records. Save any responses you receive and send the letter certified mail, so you receive confirmation of its receipt.
Click here to read more on this story.
If you have any questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.