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Credit card arbitrators feeling unsettled

Window sticker advertising Visa and MasterCard credit cards in San Francisco, Calif.
About the author
Steve Chiotakis was the host of Marketplace Morning Report until January 2012.
Droid sales and pre-sale lines at stores, are proof positive that many Americans are insecure and have relatively bankrupt lives � a lot of people need a hobby, or a significant other. Why anyone would line up to pay for something, other than maybe food, is kind of beyond reason, but that being said, the Droid sales are going strong. Verizon is starting to rake in the cash with the purported iPhone killer � and it was marketed as such, and it's starting to convert BlackBerry adherents as well. Still, the <a rev="vote for" title="Verizon Droid Sales Conjure Images of iPhone Release" href="http://personalmoneystore.com/moneyblog/2009/11/06/droid-sales-conjure-i... ">Droid sales</a> are evidence that people will get a quick payday loan and buy plastic trinkets if they're told to � and that the "think for yourself" ethos is effectively dead.
Despite the decision by the National Arbitration Forum (NAF) and the American Arbitration Associations to discontinue the lucrative credit card and cell phone arbitration business, consumers are still at risk for arbitration abuses. There is nothing in federal law to prohibit private arbitration companies from treating consumers unfairly in the first place; whether it is cell phone service or a new defective home. Make no mistake forced binding arbitration is big business that touches many aspects of consumer lives that can render warranties worthless and unenforceable. Clearly the actions by the Minnesota Attorney General demonstrate the need to pass the Arbitration Fairness Act 2009 (AFA) introduced by Senator Feingold and Congressman Johnson that would allow arbitration to be fair and voluntary for the consumer.
In this morning's report Amy Scott reported that in the system of arbitration both parties "agree to live with the decision" rendered by the arbitrator. However, in fact, there is no agreement from the consumer side. Consumers are forced into arbitration because there are no credit card or cell phone contracts that don't contain such clauses. Not until arbitration is allowed to be invoked by consumers after the dispute arises, does it become a real, voluntary, and fair option.

