The “Beauty” of Arbitration Clauses

By Joel Shapiro

The New York Times recently reported that many consumers are being denied access to the court system through questionable legal tactics by debt collectors.   Debt collectors file lawsuits to obtain judgments on old (potentially time-barred) debts, often with no notification to the consumer.  But when consumers go to court to challenge the validity of collecting the debt, the debt collectors argue that arbitration clauses in underlying consumer contracts block the consumers’ right to sue in court or their right to pursue a class action lawsuit; and that instead consumers are restricted to arbitration.  The New York Times has reported, in previous articles in this series, that arbitration clauses infringe the rights of consumers and unfairly benefit corporations.  See the full article, and others in the series, here:

http://www.nytimes.com/2015/12/23/business/dealbook/sued-over-old-debt-and-blocked-from-suing-back.html?_r=0

Joel Shapiro is a solo practitioner in Portland. His practice includes crime victim representation, personal injury, consumer law, and legislative advocacy.