Credit Tips: Credit Card Arbitration Provision

Posted On: January 1, 2006

Author: vibes
Posted: Sun Jul 11, 2004 2:38 pm
Post subject: Credit Card Arbitration Provision

11/20/2001 1:53 pm CDT

I have received an imp. Legal Notice from two of my credit card companies recently: Providian and Capital One.
They say that they prefer settling disputes outside the court system. So thus if they Abritrate a Claim then I do not have the right to Pursue that Claim in court or have a Jury decide it. It has many other rules regarding the Arbitration fees etc. It also says that if one party starts a lawsuit the other one can choose to use Arbitration and thus the Lawsuit will no longer be a valid way or resolving the issue. It has to be only Arbitration from then on.
I do not understand these legal technicalities! Has any one else received any such notices? Do you know what they mean and is it good to choose this option?
Thx for the help,

Author: lara
Posted: Sun Jul 11, 2004 2:39 pm
Post subject: Credit Card Arbitration Provision

11/20/2001 2:50 pm CDT

I got the same notice and I am wondering also. I think I will reject having it added to my customer agreement.

Author: Eugene
Posted: Sun Jul 11, 2004 2:40 pm
Post subject: Credit Card Arbitration Provision

11/20/2001 10:37 pm CDT

I think I will reject having it added to my customer agreement.

You might want to check with your credit card issuer, but I think they will close your account if you do not agree to arbitration clause.

Author: Mom
Posted: Sun Jul 11, 2004 4:49 pm
Post subject: Credit Card Arbitration Provision

11/21/2001 9:50 am CDT

You might want to check with your credit card issuer, but I think they will close your account if you do not agree to arbitration clause.

Eugene is right, atleast as far as CITI and Providian go it states if you do not agree then when your card expires/renewal your account will be closed and if you have a balance you will pay with the original terms.

Cap one they try to be tricky as far as I am concerned. They state it will not effect you AT THIS TIME, but I’d bet my bottom dollar come renewal time that will be part of the new agreement!!