Some of you who have followed my diaries know that binding arbitration is one of my hot buttons. It is an insidious practice, and very common across many consumer-facing industries today.
Though he has not addressed it very directly, I am hopeful that this would be one area that Obama's proposed Consumer Protection agency would regulate, or investigate at the very least.
I know that with many of the things going on today (health care, Sotomayor, GOPFAIL/Palin) that this may not be considered a major story. People that feel that way are wrong.
***Cross-posted from "The Consumerist" (MN AG punches National Arbitration Forum in the face)
Relevant articles are below:
--Minnesota sues Credit Arbitrator, citing Bias
--Arbitration Fairness Act advocacy page
--NPR story highlighting need for arbitration reform
--Businessweek's expose on arbitration
--Rep. Johnson's House Bill, Arbitration Fairness Act (H.R. 1020)
--More Consumerist posts on arbitration
--Source of House Bill, plus good news story links
Most of the nation's credit-card companies have clauses in their contracts that require consumers to resolve disputes over how much they owe through arbitration, a private judicial process that is supposed to be fair and cheaper and more efficient than the courts. Increasingly, though, credit-card issuers have turned to arbitration to collect delinquent debts.
Arbitration may be quicker, but it definitely isn't fair. As Ben Popken (one of the Editors of Consumerist) points out, "Mandatory binding arbitration is so bullshit that the opposing attorneys don't even show up to the hearings."
2/12/2009--Introduced.
Arbitration Fairness Act of 2009 - Declares that no predispute arbitration agreement shall be valid or enforceable if it requires arbitration of:
(1) an employment, consumer, or franchise dispute, or
(2) a dispute arising under any statute intended to protect civil rights. Declares, further, that the validity or enforceability of an agreement to arbitrate shall be determined by a court, under federal law, rather than an arbitrator, irrespective of whether the party resisting arbitration challenges the arbitration agreement specifically or in conjunction with other terms of the contract containing such agreement. Exempts from this Act arbitration provisions in collective bargaining agreements.
This would go a long way in fixing things. Currently sponsored by Rep. Henry Johnson (D, GA-4), it has 82 co-sponsors.
CALL AND VOICE YOUR SUPPORT FOR REP. JOHNSON!!!
Official website: http://hankjohnson.house.gov/
1133 Longworth House Office Building
Washington, DC 20515
Phone: 202-225-1605 Fax: 202-226-0691
Here is a list of all the co-sponsors, as well:
Rep. Michael Arcuri [D, NY-24]
Rep. Joe Baca [D, CA-43]
Rep. Tammy Baldwin [D, WI-2]
Rep. John Barrow [D, GA-12]
Rep. Timothy Bishop [D, NY-1]
Rep. Sanford Bishop [D, GA-2]
Rep. Leonard Boswell [D, IA-3]
Rep. Bruce Braley [D, IA-1]
Rep. André Carson [D, IN-7]
Rep. Ben Chandler [D, KY-6]
Rep. Donna Christensen [D, VI-0]
Rep. Yvette Clarke [D, NY-11]
Rep. Gerald Connolly [D, VA-11]
Rep. John Conyers [D, MI-14]
Rep. Joe Courtney [D, CT-2]
Rep. Danny Davis [D, IL-7]
Rep. Peter DeFazio [D, OR-4]
Rep. Diana DeGette [D, CO-1]
Rep. William Delahunt [D, MA-10]
Rep. Rosa DeLauro [D, CT-3]
Rep. Norman Dicks [D, WA-6]
Rep. Lloyd Doggett [D, TX-25]
Rep. Michael Doyle [D, PA-14]
Rep. Keith Ellison [D, MN-5]
Rep. Barney Frank [D, MA-4]
Rep. Charles Gonzalez [D, TX-20]
Rep. Raymond Green [D, TX-29]
Rep. Al Green [D, TX-9]
Rep. Raul Grijalva [D, AZ-7]
Rep. Luis Gutiérrez [D, IL-4]
Rep. John Hall [D, NY-19]
Rep. Phil Hare [D, IL-17]
Rep. Alcee Hastings [D, FL-23]
Rep. Martin Heinrich [D, NM-1]
Rep. Brian Higgins [D, NY-27]
Rep. Paul Hodes [D, NH-2]
Rep. Jesse Jackson [D, IL-2]
Rep. Sheila Jackson-Lee [D, TX-18]
Rep. Eddie Johnson [D, TX-30]
Rep. Paul Kanjorski [D, PA-11]
Rep. Dennis Kucinich [D, OH-10]
Rep. James Langevin [D, RI-2]
Rep. Steven LaTourette [R, OH-14]
Rep. Barbara Lee [D, CA-9]
Rep. David Loebsack [D, IA-2]
Rep. Nita Lowey [D, NY-18]
Rep. Stephen Lynch [D, MA-9]
Rep. Carolyn Maloney [D, NY-14]
Rep. Edward Markey [D, MA-7]
Rep. Betty McCollum [D, MN-4]
Rep. James McGovern [D, MA-3]
Rep. George Miller [D, CA-7]
Rep. Brad Miller [D, NC-13]
Rep. Gwen Moore [D, WI-4]
Rep. Patrick Murphy [D, PA-8]
Rep. John Murtha [D, PA-12]
Rep. Jerrold Nadler [D, NY-8]
Rep. Eleanor Norton [D, DC-0]
Rep. Edward Pastor [D, AZ-4]
Rep. Donald Payne [D, NJ-10]
Rep. Pedro Pierluisi [D, PR-0]
Rep. Chellie Pingree [D, ME-1]
Rep. Timothy Ryan [D, OH-17]
Rep. Linda Sánchez [D, CA-39]
Rep. John Sarbanes [D, MD-3]
Rep. Janice Schakowsky [D, IL-9]
Rep. Allyson Schwartz [D, PA-13]
Rep. Robert Scott [D, VA-3]
Rep. Carol Shea-Porter [D, NH-1]
Rep. Ike Skelton [D, MO-4]
Rep. Adam Smith [D, WA-9]
Rep. Zachary Space [D, OH-18]
Rep. Fortney Stark [D, CA-13]
Rep. Bart Stupak [D, MI-1]
Rep. Betty Sutton [D, OH-13]
Rep. Bennie Thompson [D, MS-2]
Rep. John Tierney [D, MA-6]
Rep. Debbie Wasserman Schultz [D, FL-20]
Rep. Melvin Watt [D, NC-12]
Rep. Henry Waxman [D, CA-30]
Rep. Robert Wexler [D, FL-19]
Rep. Lynn Woolsey [D, CA-6]
Note: All D's in there EXCEPT FOR ONE. Commendable that at least one GOP member will make a reasonable vote or two.