Binding Arbitration

What is Binding Mandatory Arbitration (BMA) aka Forced Arbitration? 

When a corporation includes a BMA requirement in its contracts, it means your dispute must be decided by a private legal system. Because BMA clauses are "binding," you must abide by the decision and have no right to appeal. You cannot walk your case through the doors of the judicial system because you have (knowingly or unknowingly) waived your rights to have access to the court. You can't sue me clauses usually mean you can't sue them for any liability in a court of law-but they can still sue you. That's right-they don't waive their rights-they only force you to waive yours. It isn't a reciprocal clause-it's a one way street and they own the roadway.

This is a private, for-profit system that:

• is a lawless system. The arbitrators are usually retired judges, who do not have to follow the law or even justify their decisions. (Full story here).
• Arbitration takes away your right to appeal an unfair or bad decision
• normally costs much more than using the courts and it is usually required that you go to the city and state they reside in
• prevents you from being part of most class action lawsuits
• favors business rather than you because decisions are made behind closed doors

"Without knowing it, you may have already signed dozens of these clauses. They're everywhere: health insurance contracts, telephone contracts, car contracts, rental clauses, credit cards, bank loans, nursing homes, house repairs, computer companies you name it." See: www.givemebackmyrights.org

Do Americans Have the Best Laws Money Can Buy?

Our consumer protection laws seem to be dwindling away at a time we need them most and at a time privacy concerns, data breaches and widespread identity theft continues to blossom at alarming rates.

Is it a case of America simply receiving the best laws money can buy caused by increasing demands of powerful industry lobbyists? Our consumer protection laws should be based on the needs of all citizens and not based on the wants of special interest groups. Have we forgotten the difference between wants and needs? They are two very different things.

It seems to me, our congressional representatives comprise of very wise, judicious, knowledgeable men and women-that's why we voted for them-Right?

Then why don't they get it? Leaving giant loopholes in consumer protection laws that or by allowing corporations to slide out from under any accountability by forcing binding mandatory arbitration clauses in credit card contracts, employment contracts and more, they are harming consumers and allowing fraud and consumer wrongs to go undeterred!. Why is it they can't see that by abolishing state laws we lose many rights for accountability and control? Or do they see this and do it anyway?

Our laws should not be for sale-for any price-they should be the best laws money can't buy!

For more on binding mandatory arbitration see blogs here.

See more here: At Odds with A Creditor? Odds Are Good-You Have Already Lost...

Business Week: Binding Arbitration: Banks vs. Debtors (Guess Who Wins)

Listen to Ira Rheingold, Executive Director and General Counsel of the National Association of Consumer Advocates and Janet Ahmad, President of HomeOwners for Better Building discuss the costly and harmful effects of binding mandatory arbitration and how it affects consumers, our rights and our justice system.