Skip to Content

Get Your FREE Consultation


Bank of America Agrees to Stop Forcing Customers into Arbitration

October 2, 2009

Bank of America Corp., one of the nation’s largest banks and credit card issuers, recently ended a requirement that disputes with the bank’s customers be settled through binding mandatory arbitration (“forced arbitration”). The announcement by the bank followed statements by two large arbitration services that they would no longer handle consumer debt collection cases. The National Arbitration Forum (“NAF”) agreed to discontinue arbitration of consumer disputes as part of a settlement entered into with the Minnesota Attorney General. NAF was the subject of much criticism and some litigation surrounding allegations, subsequently proven to be true, that NAF was owned and controlled by the same hedge fund which owned the nation’s largest debt collection agencies which frequently pursued claims before the NAF. Soon after NAF’s announcement, the American Arbitration Association also stated that it would no longer accept consumer debt collection cases.

While Bank of America’s decision to drop forced arbitration from consumer disputes is a positive for its customers, the decision demonstrates that arbitration of consumer disputes has never been truly “voluntary,” but instead is a dispute resolution process imposed or withdrawn at the whim of the business drafting consumer agreements. Hopefully, Bank of America will stand by this decision and allow consumers to continue having disputes resolved in the court system. That is the only way to ensure that consumer claims are handled in a fair, transparent, and unbiased forum.

No Win, No Fee

Review Us

Martin & Jones, PLLC logo

“I would like to leave a testimonial thanking Steven and Allison for their care and understanding. Steven’s pursuit and success in getting some compensation for our loss. A final closure of our loss of brother Mike. Thanks to Martin & Jones for looking after Mike’s care since his injury in 2005. You have been there for Mike and his family for a long time. Mike passed in 2016 and you stood for the family up to the present (July 2017). Many thanks.”

Contact Our North Carolina Personal Injury Law Firm

for a Consultation for Your Accident or Medical Malpractice Claim

Call us at 800-662-1234
No Win, No Fee

The law firm you choose makes a difference. If you are the victim of an accident or an illness that someone else caused, the North Carolina personal injury law firm of Martin & Jones has the depth of experience, skills and sensitivity to make your road to recovery as smooth as possible. Whether you have experience with the legal system or have never hired a medical malpractice or personal injury lawyer before, our attorneys and staff will do our best to answer your questions, provide clear advice and prepare you and your family for what to expect. If you would like more information or to meet with one of our attorneys, please fill out the form below or call us at 800.662.1234.