Arbitration firms fleeing the consumer credit industry amid threats of lawsuits and regulation

From CreditCards.com (via Consumerist):

Two more supporting beams have crumbled and now, with astonishing speed, the entire edifice of the mandatory credit card arbitration system is collapsing.

A second major arbitration firm -- the American Arbitration Association -- said Tuesday that it has suspended all consumer arbitration activities. And JPMorgan Chase, one of the nation's largest credit card issuers, announced Wednesday that it would stop filing such claims against consumers.

The last time I posted here regarding mandatory binding arbitration, it was in regard to a bizarre yet tragic rape case in Iraq involving a US citizen and Halliburton employee.

Even if the major industries abandon using the clause against consumers, franchise contractors, and employees, I still hope that the Arbitration Fairness Act will keep that door shut behind them. It's a very, very tempting way to cut costs, but comes with a terrible price-- the individual will have signed away his/her due process rights in any dispute with the company that would otherwise result in a lawsuit.

As the linked article says, this is incredibly fast for two big players in this market to shift away from what was standard business practice. That means they are "messing their pants" scared, and/or they knew with a consumer-friendly administration calling the shots, those clauses were doomed.

Now, about those cell phone contracts...