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Article Excerpt
Eight credit and charge card companies conspired to impose mandatory arbitration clauses on cardholders, according to a case filed in federal court in August. The clauses, which also ban class actions, let companies skirt consumer protection and antitrust laws meant to prevent corporate misconduct, and they should be declared void, plaintiffs say. (Ross v. Bank of Am., No.O5 CV7116 (S.D.N.Y. filed Aug. 11, 2005).)
The defendants--Bank of America, J.P. Morgan Chase (including Chase, Bank One, and First USA), Capital One, Citibank/Diners Club, Discover, Household, MBNA, and Providian--control more than 86 percent of the general-purpose card market along with named coconspirators American Express and Wells Fargo, according to the complaint. (Credit cards allow consumers to delay paying for their purchases by paying a finance charge; charge-card purchases must be paid off every month.)
Because arbitration clauses are widespread, consumers have little choice but to use a card with one, say the plaintiffs, seven cardholders...
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