When you sign up for a new credit card, you agree to specific terms. These usually relate to the amount of interest the company can assess to your balance and any late fees you could incur.
As with most agreements, you should thoroughly read the bank’s related documents before signing. And you might want to be aware of your legal rights in the event of a dispute.
Your credit card company could prohibit you from filing a lawsuit
Many contracts require you to agree to arbitration if you have a dispute with the company. Although you could potentially find a resolution to a problematic situation, agreeing to arbitration would prohibit you from:
- Being part of a class action lawsuit
- Having a jury try your case
- Going to court
Roughly 10 years ago, JPMorgan Chase stopped requiring their credit card holders to agree to private arbitration.
Many people feel arbitration is a better solution, both financially and timewise, than fighting through legal proceedings in court. However, if you already have an established agreement, can a bank alter the terms?
JPMorgan Chase is changing their terms for dispute resolution
The largest bank in the United States has recently experienced negative publicity. But will changing the terms of roughly 50 million open accounts shed a better light on the lender?
Rather than improving cardholder rights, mandatory arbitration could increase bank profits. And if you do not send a letter directly to the bank to reject the change in terms, you could lose your right to sue the company.
JPMorgan Chase suggests that binding arbitration is best for their customers. But if you have one of their credit cards, would you rather determine that for yourself?