Guest Blogger Arone Silverman

When consumers sign contracts to obtain a financial product they typically agree to mandatory arbitration in the event that they later have a dispute with the company in question. Mandatory arbitration forces individuals to give up their right to go to court if they are harmed by a company. These clauses are hidden in the fine print of common consumer contracts like credit cards, mortgages, and cell phones.

Companies use these hidden clauses to protect themselves against lawsuits for unfair business practices and exploitation. By adding it to the fine print, consumers are denied the ability to bargain with the company and at times, forgo important legal rights.

But something can be done! There is a bill in the House of Representatives that would make arbitration voluntary in legal contracts.

The Arbitration Fairness Act - H.R. 1020 – requires that agreements to arbitrate employment, consumer, franchise or civil rights disputes be made after the dispute has arisen. This would protect consumers from being coerced into waiving their rights provided by the judicial system.

Click here to tell your congressional representative your position on The Arbitration Fairness Act!