Kucinich: BOA Ends Mandatory Arbitration
According to US Rep. Dennis Kucinich (D-OH), Chairman of the Domestic Policy Subcommittee of the Oversight and Government Reform Committee, Bank of America sent a letter notifying him of its intent to abandon the practice of mandatory arbitration in all customer agreements.
“Bank of America was responding to a letter that Kucinich sent it and the 12 other largest banks in the country after a Domestic Policy Subcommittee hearing on the topic of mandatory arbitration. The hearing revealed that consumers are pummeled by a process that is severely tilted in the favor of creditors and almost never extends to them basic consumer protections,” Kucinich’s office said in a press release.
“I commend Bank of America for their decision today, and for taking the courageous step of being the first large bank to eliminate this abusive practice. My Subcommittee investigation and report into the practice of mandatory arbitration laid bare a hopelessly broken process that tramples consumer rights. Bank of America is right to take such bold action,” Kucinich said.
US Rep. Hank Johnson (D-GA) has also taken the lead in opposing mandatory arbitration clauses, which appear in most bank and credit card agreements, whether consumers realize it or not. This means they agree they cannot sue the bank and instead have to pursue arbitration at arbitration.com or through any lawyer that specializes in arbitration.