More Credit Card Issuers to Drop Mandatory Arbitration

In the new year, a fast growing number of credit card holders won’t have to settle disputes over their charges through mandatory arbitration, a long-standing process that critics and lawmakers contend nearly always favor the card companies. Capital One became the third major credit card issuer to agree to leave out binding arbitration clauses in new consumer credit agreements next month, following the same decisions by JPMorgan Chase, the largest general-purpose credit card provider, and Bank of America.

Chase, Nation’s Top Credit Card Issuer, Ends Mandatory Arbitration

JPMorgan Chase, the nation’s top credit card lender, said today it will no longer require customers to settle disputes through arbitration, a practice that lawmakers and consumer advocates claim to nearly always favor the credit card companies.