Credit cardholders should opt out of Chase’s return to forced arbitration

Tuesday, June 11, 2019

Chase recently notified 47 million accountholders that the bank is reinstating a forced arbitration clause in its cardholder agreements. Forced arbitration bans consumers from suing a company, individually or through a class action, if a dispute with the bank remains unresolved.

While other major companies—such as Google—are distancing themselves from harmful forced arbitration clauses, JPMorgan Chase is moving toward the draconian practice. The giant credit card issuer had dropped the anti-consumer provision in 2009 after being sued for corraling cardholders into forced arbitration. Forced arbitration keeps consumers from being able to hold corporations like Chase accountable when they charge outrageous fees or fines, or engage in illegal or misleading practices.

For a limited time, Chase cardholders can decline the binding arbitration clause—if they notify Chase in writing (by mail only) that they do not consent to giving up their right to go to court, have a jury trial or participate in a class action. Note: The opt-out notification must be mailed by Aug. 7 to: P.O. Box 15298, Wilmington, DE 19850-5298.

In forced arbitration, the corporation gets to pick the arbitrator. A recent study debunks Chase’s argument that arbitration “provides better outcomes” for its customers, revealing how corporations typically pick arbitrators who are known for making industry-friendly judgments (and who benefit financially from doing so). The “little guy” rarely wins in forced arbitration.

The few consumers who do receive relief through forced arbitration claims recover only 12 cents, on average, for every dollar claimed, according to a comprehensive Consumer Financial Protection Bureau (CFPB) study on the practice.

Don’t delay. Consumer Action urges Chase cardholders to reject the bank’s return to forced arbitration to resolve disputes. Cardholders can use the template letter below:
 

Chase Customer Service
P.O. Box 15298
Wilmington, DE 19850-5298

(Your) first name, last name
(Your) street address (City, State, ZIP)

Regarding: Opting out of Chase forced arbitration agreement

To whom it may concern:

I am writing to inform you that I REJECT the Chase Binding Arbitration Agreement effective August 11, 2019. Please confirm receipt of this rejection and annotate my account(s) appropriately.

Signed,

First name, last name
Signature: (sign your name here)
Account Number(s): 1234-5678-9012-2342
Billing Address: 1234 City, State ZIP