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Oct 15, 2009 -- Mandatory arbitration a national scandal

New reporting from The Wall Street Journal reveals that mandatory arbitration -- often called "kangaroo court arbitration" by Clark -- is more of a rip than even previously thought.

The Journal reveals that private-equity firm Accretive LLC owns the National Arbitration Forum, law firm Mann Bracken and the collection agency that collects on any judgments.

That's like going before a judge in a dispute with a company and having the company own the judge and lawyers, plus the third party you have to pay when you're ruled against. In essence, one party is playing judge, jury and executioner!

But wait, it gets worse. With mandatory arbitration contracts, the company is eligible to immediately get a judgment against you in court without giving you a day before a judge -- as if that would even matter in these kangaroo cases! But it could result in a garnishment of your wages or the emptying of your account.

In addition, the Journal reports there's also sworn testimony on record that if an arbitrator found in your favor, they got fired. Talk about a stacked deck!

There's a reason why we have three branches of government. Throughout our nation's history, brave men and women have fought for our freedom. For corporate America to spit on their graves by not allowing you your day in court is an outrage. In fact, Clark is declaring it a national scandal.

Unfortunately, Clark won't be able to answer any questions submitted via commenting. If you have a question, please try posting it to our message boards.

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What others are saying

  • Francisco
    It is often not the case where a person decides to "not to make payments on your credit card." Sometimes there is no more money to pay. I missed last months payment on a BofA credit card. I had been good for a long time and owe very little. Miss a payment and you are punished with higher interest. Not what I want. There is no work and I can't work due to stroke and seizure. Don't look down your nose at people who are just plain worn out. I've always worked hard and stuff happens. Even paid off some suppliers after I went bankrupt several years ago. It's illegal but I did it anyway sometimes just giving money to the charity of the suppliers choice as they knew they could not accept payment directly from me.
    Mark
  • A coming war...
    between the haves and the have not's.

    1988:People thought they were
    Haves-60%
    Have Not-20%
    DAH!-20%

    In 2008:
    Haves-42%
    Have Not-40%
    DAH!-18%

    I averaged out these numbers from different polls with the same theme. As you can see the haves went down and the have nots went up, and of course that 1/5 of our population that knows nothing stays about the same. Once that have not number gets over 50%, watch out.

    I wish Clark was Superman.
  • Arbitration
    Too much drama here with the spitting on graves and our loss of freedom. Read the WSJ article. Not sure why you need a day in court when you decided not to make payments on your credit card.
  • What difference does it make...
    Courts only decide who has the most money anyway.
  • Mandatory arbitration
    I was surprised that even the Better Business Bureau requires mandatory arbitration for its business members. After being wrong by a company, I had to risk losing in arbitration and having to pay more money to enter arbitration.
  • Arbitration abuse
    Arbitration was meant for businesses to settle disputes w/each other. Then businesses figured out they could use it against consumers. The Arbitration Fairness Act needs to pass in congress to restore the original intent of arbitration laws, and restore our constitutional right to use the courts. Even many lawyers do not adequately understand this problem, let alone consumers. The privacy of this kangaroo court has hidden untold complaints from public view and allowed corporations to escape accountability. It needs to be fixed, asap.
  • Arbitration Agreements
    Yes, to put it in other terms; "It's like having the fox guarding the 'hen house', and it ain't funny!" I lost a very hard earned $12,000. by signing one. I never ever sign one any more. It was a very obvious rip-off !
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