Groups Launch Arbitration Clause Campaign

Consumer and public interest groups are launching a campaign to stop the inclusion of mandatory arbitration clauses in mortgage loans, credit cards, and employment contracts.The two dozen groups backing the "Give Me Back My Rights" campaign contend that corporations are forcing binding mandatory arbitration, or BMA, on consumers without their knowledge and denying them access to the courts. "This means that homeowners ripped off by a shady mortgage broker and consumers caught in credit card billing scams cannot take their claims to court," said Joan Claybrook, president of Public Citizen. Campaign members will be warning homebuyers to avoid lenders that use BMA clauses. They argue that arbitration should only be voluntary and said they plan to lobby Congress for federal legislation to ban BMA.