what is “arbitration”?
well, an “arbiter” is someone who decides
looks more like an “ar BITER” to me, and many who have been through arbitration might agree that it was someone who took a “bite” out of what was due them–whether you are the consumer or the provider. It is a term that is used more and more, especially in financial circles. It is not a court of law. It is something that is in many legal agreements, account disclosures, etc. that you probably have agreed to–it usually has to do with money. It literally gives away your rights to a court of law when there is a dispute. Historically, the consumer has been viewed as the “greedy” pawn in any Big Business dealing. To be honest, banking and other contracts are stacked against us when it comes to arbitration. Historically, courts of law tended to side on the sides of the consumer against Big Business. So arbitration took care of that.
Lawsuits tend to make the offenders pay back those who have been hurt by Big Business. Big Business will tell you that is just plain wrong! You, the consumer will pay higher prices in order to pay back the consumers who have been victorious in the courts. Over time this concept has gained traction and arbitration has become more and more common! You are many times forced to go to arbitration in the case of any wrong doing by a financial institution. Lack of choice is a better choice for you!
But, recently the Consumer Financial Protection Bureau completed a 5-year investigation into arbitration in consumer financial contracts and found that this is WRONG!
AND, SO WHAT, WHAT HAPPENS NOW? IT WAS AN INVESTIGATION, NOTHING MORE!