What is Binding Mandatory Arbitration “BMA?
Civil Justice Group, People Over Profits, www.PeopleOverProfits.com defines BMA as “Tricking People Out of the Right to a Trial by Jury”.
What does this have to do with Credit Card Debt?
BMA Clauses are in many Credit Card Contracts, as well as Auto Loans, Cell Phones, employment contracts, Mortgages, contractor agreements.
A BMA Clause requires that any disputes that arise will be resolved via 3rd Party Arbitration. On the surface BMA seems like a win/win. It’s really a lose / win – YOU LOSE and the Creditors win. o 86% of the time the Arbiter, takes the side of the business over the consumer.
How does a BMA Clause Work?
Businesses hire these Arbitration Companies. Next the business will place a BMA into their contracts. If you sign that contract, you just gave up all right to have your day in court. In many cases, you also give up your rights to joining a class action Lawsuit.
For example; let’s say you were cheated by Credit Card Company. Let’s say they, overcharged you, and double-billed you. If your contract with the Creditor has a Mandatory Arbitration Clause, you have given up your right to a fair trial by Jury. You have to accept whatever the Arbiter decides.
Word to the wise, please beware of BMA Clauses?
[...] Ban and or restrict mandatory arbitration clauses. [...]