Bank arbitration: strategies for fighting it

By Marcie Geffner -

Consumers who get into an argument with a big bank might want to write off their loss and run for the exit rather than stand and fight.

That's because most large banks restrict consumers' dispute resolution options, according to "Banking on Arbitration: Big Banks, Consumers and Checking Account Dispute Resolution," a report last year by the Safe Checking in the Electronic Age Project by The Pew Charitable Trusts in Washington, D.C.

The report found 64 percent of big banks' checking account agreements contained clauses that required mandatory binding arbitration, banned class-action lawsuits, waived the consumer's right to a jury trial, limited damages and liability, shortened statutes of limitations, or imposed other limits on dispute resolution.

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