HOBB Community

http://abcnews.go.com/Video/playerIndex?id=4954433

That video link says it's not working anymore, but did you mean this story? http://www.abcnews.go.com/GMA/Consumer/story?id=4955187&page=1 Text version.

I agree, anyone who thinks they couldn't be the victim of a mix up or identity theft and end up in arbitration w/a credit card co is in denial of reality.  As the article points out, you don't even have to be their customer to be ruled against in arbitration.  Theoretically, the court system requires that at least the right person is sued.  In arbitration, apparently that's not important.

For the benefit of any new readers who don't yet know it, pre dispute, mandatory, binding arbitration clauses in builder contracts, home warranties, real estate contracts, etc, have similar consequences, (bias in favor of companies who do repeat business, unfairness to consumers).  Arbitration clauses take away your right to file a lawsuit.  Without that right, the company is harder to hold accountable.  The Arbitration Fairness Act, (AFA), a bill before Congress now, would make such clauses unenforceable.  Currently, some courts find really, really bad clauses unenforceable but many courts enforce them, plus the consumer has the expense and waste of time to try get out of the arbitration clause and risks still having to arbitrate.  If AFA passes, people can regain their legal rights and again choose court if they want to, after or if a dispute arises.

Also a primary target goal for people who stick MBA on consumers, is to block class actions, as does tort reform. This is real handy for credit cards and banks who invent fees or cause them to occur by a shady or even illegal "policies".  "Policies" in that I'm finding banks like BB&T,  Bank Of America, American Express, Barclays, and many others make up sh8t right in the branch office or on the phone, concerning their so called policies.

It's not cost effect to sue or go through arbitration over abusive fees or charges for the individual consumer. Banks greed has helped sink our economy, and the people hurt the worst are being fee' d out of existence to help make up for bad loans used to bloat the building industry.
 
MBA makes consumer protection laws merely suggested guidelines in most cases. Arbitration has no place being forced on anyone. It was, and should still be, only used to allow agreeing parties to privately settle disputes that are thereby made legally binding.