Supreme Court Upholds Arbitration Provision in Credit Card Contract

By Debra Cassens Weiss

The U.S. Supreme Court has ruled that consumers who received the Aspire Visa credit card are bound by a mandatory arbitration provision in their applications. 


The plaintiffs had claimed in a class action suit that they were promised $300 in available credit, but were charged $257 in fees. They maintained that the Credit Repair Organizations Act gave them a right to sue. They cited a provision in the CROA requiring credit repair organizations to tell consumers, “You have the right to sue a credit repair organization that violates the Credit Repair Organization Act.”

Gary Paul, president of the American Association for Justice, criticized the decision in a press release. “With this ruling, the U.S. Supreme Court has given corporations a way to escape accountability by forcing consumers into a rigged and biased forced arbitration process, even when Congress expressly provides a remedy in a court of law," he said.

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