Study Requested by Chamber Confirms Value of Arbitration

Arbitration is a much better alternative for consumers than the court system, with consumers four times more likely to lose when credit card cases go to court, according to a new analysis conducted at the request of the Chamber’s Institute for Legal Reform (ILR).

“As a growing number of American families are facing burdensome debt collection issues in these times of economic uncertainty, it is astounding that America’s plaintiffs’ lawyers are working to tear down a proven dispute resolution system and force tens of millions into court,” says ILR President Lisa A. Rickard. 

The analysis released by Navigant Consulting looked at nearly 34,000 California debt collection arbitration cases. It found that 32.1% of the consumer debtors named in cases that did not settle prevailed in their case—either winning their arbitration hearing outright or having the claims against them dismissed. In another 16.4% of the cases that did not settle, the study found that consumer debtors had the claims against them reduced by a median of almost $825.

The Navigant analysis confirms two studies released by ILR earlier this year that illustrated the widespread public support for the use of arbitration rather than litigation in consumer and employee disputes.

Read the Navigant analysis.

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