News has spread fast about the complaint filed on Monday July 14 by the Attorney General of Minnesota against National Arbitration Forum. But as usual no one has a more complete first cut than Russ Bleemer of CPR — read his coverage here. Bleemer links these troublesome allegations of deceptive practices to the upcoming Congressional hearings on the abuse of consumer arbitration.
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This is going to be a real mess, because AAA has also dropped consumer arbitrations. Consumers are whistling Dixie if they think they’ll be better off in court. NAF arbitrators are independent lawyers and former judges. I think most of them, like me, tried mightily to guard the rights of the consumer and require the creditors to justify their claims. The fact is, most debtors owe the money and have no defense, and going to court will not change the result. Without an arbitration system, the costs to all parties and to the public are going to escalate.