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Published: Monday, 5/2/2011

High court to hear new arguments over arbitration between customers and companies

ASSOCIATED PRESS

WASHINGTON  — The Supreme Court will consider a plea from companies that cater to people with bad credit to keep disputes with their customers out of court and in arbitration.

Days after limiting class action claims against businesses, the court said Monday it will take up a new arbitration dispute this fall.

This case involves complaints against companies that issue low-rate credit cards to people with bad credit ratings. The consumers said they were promised an initial $300 in available credit, but were charged $257 in fees.

The consumers sued but the companies say the customers’ contract requires arbitration.

The federal Credit Repair Organizations Act says consumers have a right to sue. One appeals court says that means a right to go to court but other courts have ruled otherwise.



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