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Chase adds arbitration back into credit cards


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As of 5/18/2019, due to Chase Bank's merger with JP Morgan, all Chase credit cards have had their Card Agreements updated an an arbitration clause has been added back in.  Previously Chase had removed arbitration as among the few OCs who did so following the NAF lawsuit blowback.  However, with JP Morgan Chase now fully merged, the arbitration clause is back in.  Some of the highlights include:

Choice of AAA or JAMS:

Under this agreement to arbitrate, the party filing a Claim must select either Judicial Arbitration and Mediation Services ("JAMS") or the American Arbitration Association ("AAA") as the arbitration administrator. You can learn more about these organizations online, at the addresses provided below. Each of these organizations will apply its code of procedures in effect at the time the arbitration claim is filed.

Chase will pay all fees:

We will pay any costs that are required to be paid by us under the arbitration administrator's rules of procedure. Even if not otherwise required, we will reimburse you up to $500 for any initial arbitration filing fees you have paid. We will also pay any fees of the arbitrator and arbitration administrator for the first two days of any hearing. If you win the arbitration, we will reimburse you for any fees you paid to the arbitration organization and/or arbitrator. All other fees will be allocated according to the arbitration administrator’s rules and applicable law.

Although under some laws we may have a right to an award of attorneys' fees and expenses if we prevail, we agree that we will not seek such an award.

You choose the type of hearing (meaning they should NOT be able to object to your choice per this agreement):

If your Claim is for $10,000 or less, you may choose whether the arbitration will be conducted solely on the basis of documents, through a telephonic hearing, or in an in-person hearing. Any in-person hearing will take place in the federal judicial district that includes your address at the time the Claim is filed, unless the parties agree to a different place.

Contractual Right to appeal to a 3-arbiter panel:

A party can file a written appeal to the arbitration administrator within 30 days after an award is issued. The appeal will proceed before a panel of three neutral arbitrators designated by the same arbitration administrator. That panel will consider all legal and factual issues anew, and make all decisions and awards by majority vote based on the documents and arbitration record without a hearing.


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From my reading, the new Chase agreement looks like it has a better arbitration clause now than even Synchrony Bank.  Especially with the inclusion in writing stating that they will NOT seek arb or attorney fees even if they win.  That is pretty big.  Combine that with JAMS plus the right to appeal and I don't see a single JDB wanting to mess with a Chase Bank account in arbitration at all.

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One of the tactics I once used:

There was a time when the arbitration agreement changed for the better after I defaulted on a card.  

I sent a letter to the OC, who still owned the account, CMRRR, stating that I accepted all changes to the credit card agreement.  That way I was able to use the current agreement rather than the agreement in effect at the time of default.  

Let’s just say that bank never collected a penny from me afterwards.  

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