National Arbitration Forum Decides 61 Year Identity Theft Victim Owes $46,000 Yahoo! Finance has a horrible story about a 61 year old lady living on $759 a month Social Security whose credit card was stolen and it ended up with the National Arbitration Forum (NAF) deciding she owed them $46,000.When she received notice of pending arbitration against her, it had no claim attached to it. She didn't even know who was suing her. She sent a letter asking for the case to be dismissed or to be served with an actual claim. She didn't hear from them again until NAF told her they had ruled against her for $46,000. They didn't even respond to her motion.Takeaway: Scan your monthly credit card statements for any charges you don't remember making and report them as soon as possible. Also, arbitration by companies against consumers is evil. Support the Arbitration Fairness Act. Stacking the Deck Against Consumers. Read More on the horrors of Binding Arbitration...

Stacking the Deck Against Consumers
"I said I wanted to see the signatures -- who had signed for these purchases? And they wouldn't give me that," says Lieber. "They said, 'You're responsible, this is your credit card.' I ignored them because I thought they were nuts." Lieber sent a letter demanding the agency cease contact -- which debt collectors must do under a 1996 federal law. But they continued to harass her and her spouse, Theodore, who was confined to a wheelchair following a stroke. Frightened by a menacing phone call, Theodore sent a payment to the collection agency...Lieber heard nothing until another notice arrived, stating that MBNA had won a $46,000 judgment against her in arbitration. "Lieber never even had the opportunity to see what the claim was against her, or put in a defense," says Wilner. "They ruled against her without responding to her motion."

Credit Card Arbitration
On Nov. 15, 2001, a New Hampshire man named Troy T. Cornock received a surprising letter from something called "National Arbitration Forum." Seems this organization claimed he owed money on an MBNA credit card. The credit card company could produce no proof Cornock had opened the account or made any charges. Not to worry. The National Arbitration Forum ruled against the customer anyway, and awarded MBNA $9,446.85...is just one of literally thousands of instances in which the credit card industry has flushed the Constitution--and the requirement for due process of law--down the commode.

Scottsdale couple battle developer over wall
A major Arizona homebuilder stands accused of attempting to financially bleed a north Scottsdale couple into submission in a decade-long legal dispute over a defective retaining wall. It took nearly 10 years before an arbitrator found that Shea Homes owed Quent and Nolya Augspurger $164,000 for damages, legal fees and court costs — a judgment that a Maricopa County Superior Court judge reaffirmed late last month....In 2003, the couple filed for arbitration just before their ability to do so expired. The arbitration process ended up taking four years.  “It’s supposed to be a quick and easy, economical way of settling disputes,” Quent Augspurger said. “I think they try to wear the homeowner down and make it so difficult for them that they give up.” Nolya Augspurger characterized the developer’s attitude as, “Don’t mess with us big boys.

Is agriculture arbitration bill the "tip of the iceberg'?
The Senate Agriculture Committee is expected to act on a farm bill this month that includes a provision barring binding arbitration clauses in livestock contracts. While the provision, written by Senate Agriculture Committee Chairman Tom Harkin, D-Iowa, applies only to those contract disputes involving livestock and poultry, “that's the tip of the iceberg in terms of what's going on with the attacks on arbitration right now,” said Matt Webb, senior vice president for legal-reform policy at the U.S. Chamber of Commerce in Washington.

Women Forced Out of Their Jobs For Reporting Fraudulent Sub-Prime Home Loans Win Appellate Decision
In recent months, the sub-prime lending market has collapsed, as many borrowers can no longer afford their monthly payments.  Home values have plummeted below the amount owed on loans as interest rates have risen.  As a result, foreclosures have become increasingly frequent.  Six brave women who worked for one of the nation's largest sub-prime home mortgage lenders, Lehman Brothers subsidiary BNC Mortgage Inc., spoke out about fraudulent mortgage lending practices, and were  viciously harassed for their trouble.

Report faults binding mandatory arbitration
Credit card holders stand little chance of winning in mandatory arbitration of disputes with their banks, according to a report released Thursday by national consumer advocacy group Public Citizen. Arbitration firms used by companies such as MasterCard Inc., Visa, Discover Financial Services LLC and American Express Co. ruled against consumers in about 18,000 of 19,000 disputes analyzed in Public Citizen’s study. The group examined data from California because it is the only state that requires arbitration companies to publish the results of cases they hear. However, consumer advocates at Public Citizen and in Maryland are confident the problem is national in scope.

Binding arbitration a loser for consumer
In a review of 34,000 arbitration cases, Public Citizen said that companies initiated nearly all of the cases and used arbitration firms that they know will rarely rule in favor of consumers.The report focused specifically on cases handled in California by Minneapolis-based National Arbitration Forum. California is the only state that requires arbitration companies to publicly disclose details of arbitration cases.

Creditors have upper hand in disputes
What credit squeeze? The Federal Reserve says Americans are charging as much stuff as ever on credit cards. But a report out today from the consumer watchdog Public Citizen says that when we dispute those charges, cardholders lose almost every time. Helen Palmer reports.Listen to this Story

Pennsylvania Moves to Regulate Home Building Arbitration Contracts
The Pennsylvania House of Representatives is considering legislation that would set conditions for the enforcement of pre-dispute arbitration agreements in contracts between home builders and customers, and make a failure to comply grounds for a court to void the clause... The bill would make a home construction contract voidable by the consumer if it has any of the following types of clauses, a clause purporting to waive a customer's right to a jury trial, an agreement not to assert any customer claims or defenses arising out of the contract, a provision authorizing a homebuilder to recovery attorney's fees and costs from the customer...