Master "Refusal of arbitration" thread

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Here is a complaint filed against NAF which exposes their illegal practices. Please note that it starts as a wrongful termination suit, but goes on to name illegal practices like automatic awarding arbitration disputes in favor of certain credit card companies or collection agencies and forging proof of service to consumers.

This is only a complaint, and has not been ruled on, but the practices going on are quite interesting. Because the Plaintiff has filed the complaint, it's the same as swearing in court that the allegations are true.

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Update - both of the big Arbitration firms have agreed to shut down due to lawsuits filed against them:

I wrote this up to summarize:

Also, the Wall Street Journal wrote up a little article how the closing of the two big firms is throwing "credit card disputes in disarray":

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While we watch to see how arbitration works for some members, I thought I would add some information on current case law to help fight off arbitration.

In Chase Bank USA, N.A. v. Leggio, No. 43,567-CA, 2008 WL 4925802 (La. Ct. App. Nov. 19, 2008),

Reversing a trial court order confirming an arbitration award in a consumer credit dispute, a Louisiana appellate court held that mere use of a credit card does not presume consent to arbitration when the borrower did not receive notice of the arbitration agreement

Additionally, the Court rejected Chase’s implied consent argument that Leggio consented to arbitration by using the credit card. Although a presumption exists that a consumer using a credit card understands he is responsible for paying the card, merely using a credit card does not signify consent to arbitration of disputes involving a credit card, particularly without a showing that the borrower received notice of the arbitration agreement.

Wells v. Tennessee Homesafe Inspections, LLC, No. M200800224COAR3CV, 2008 WL 5234724 (Tenn. Ct. App. Dec. 15, 2008)

Affirming a trial court’s denial of a motion to compel arbitration in a dispute between a homeowner and a home inspection company, a Tennessee appellate court held that an arbitration agreement was unenforceable because both parties did not sign or initial it as Tennessee law requires.

High v. Capital Senior Living Properties 2- Heatherwood, Inc., No. 08-13066, 2008 WL 5411189 (E.D. Mich. Dec. 17, 2008),

Denying a motion to compel arbitration in a dispute between a nursing home and the estate of a deceased resident, a Michigan federal court held that a patient did not assent to arbitration because she did not knowingly and voluntarily waive her right to a jury trial.

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