Bank of America drops required arbitration for consumer credit cards
By APFriday, August 14, 2009
Bank of America drops arbitration requirement
Bank of America Corp. says it will stop requiring binding arbitration to settle disputes with its credit card holders and banking customers.
Bank of America spokeswoman Shirley Norton says the change is effective for new disputes beginning Thursday. She says they have believed that arbitration is fair, but said it was clear that some customers felt differently.
It’s possible the change could lead to more lawsuits against the company, which is based in Charlotte, N.C. Norton says they’re hoping to work out most disputes directly with customers.
It’s common for banking customer agreements to bar lawsuits and require an arbitrator to decide disputes instead. Critics have said that arbitration favors banks over individual customers.
