The letter itself is quite simple and should include a written note stating that you object to the arbitration agreement and should include your name, account number, address, and personal signature. If you have multiple credit accounts with Chase, be sure to include all of your account numbers. Military Money Manual has even published a sample letter that you can use to speed up the process. According to Chase, the new clause is essentially a choice for arbitration clients rather than joining a class action lawsuit. And they say the average outcome in arbitration is significantly better than if they joined a class action lawsuit where so much of a settlement would go to the lawyer. In addition, there is nothing to prevent a client from applying to small claims court. This should make consumers shudder. And Chase isn`t alone. A 2016 study by Pew Charitable Trusts found that mandatory arbitration clauses at financial institutions are on the rise. What does that mean? “In an arbitration situation, the bank can usually choose the arbitrator who doesn`t even need legal training,” Luthi told TODAY. “And there`s little or no chance of appealing if they come out against you.” If cardholders do not reject the binding arbitration clause in a timely manner, they will not be able to join a class action and their dispute will have to be resolved by an arbitrator.
It should be noted that although the cost of arbitration has increased with the frequency with which arbitrators` services are used nowadays, a known arbitrator, Nolo says, will cost about a few thousand dollars a day. While this may seem expensive at first glance, it`s still much cheaper than the costs associated with, say, a class action lawsuit that has been dragging on for years. About 10 years later, Chase now wants to use sneaky tactics again. This agreement means that Slate cardholders will not be able to go to court against the bank, except for small claims. Most importantly, this means cardholders can`t get together and file a class action lawsuit against the bank. I have contacted Chase for feedback on this new clause and will update it when I hear. When we contacted Chase, a spokesperson explained that the company is among the latest card issuers to reintroduce arbitration, as other credit card companies have already entered into their deals. .