As part of a settlement agreement with the Minnesota Attorney General, the National Arbitration Forum announced that as of July 24, 2009, it will cease to administer consumer arbitration disputes. The largest U.S. administrator of consumer arbitrations, NAF denied the AG’s allegations that its relationships with credit card companies resulted in harm to consumers. The NAF blamed its mounting legal costs and the legislative uncertainty surrounding the future of consumer arbitrations for its decision. News reports suggest that the American Arbitration Association is also considering ceasing consumer arbitrations pending the establishment of new guidelines. Click here for the AG’s press release and the Consent Judgment, and click here for NAF’s press release.
Alert July 28, 2009