Supreme Court Hears Credit Card Arbitration Case
October 12, 2011
The United States Supreme Court heard oral arguments on Tuesday in the CompuCredit vs. Greenwood case which arises from a group of consumers who were issued low-limit credit cards with outrageously high fees in the guise of being a credit repair program. CompuCredit claims that the Credit Repair Organizations Act gives consumers an “express right to sue” but insists that sending the parties to arbitration is sufficient under the act.
In effect, the Supreme Court must answer the question, “Can a company forbid consumers to sue them in court even though law expressly says it can’t?” The Ninth Circuit Court panel agreed with the lower court ruling that the phrase “right to sue” referred only to a suit in a court of law not to an action in arbitration. CompuCredit has appealed and continues to argue that previous decisions from the Supreme Court on the matter of forced arbitration support its position that arbitration is sufficient.