Reaffirming Mandatory Arbitration Of Consumer Claims

Law360, New York (January 12, 2012, 12:59 PM EST) -- Consumers cannot avoid arbitrating claims under the Credit Repair Organizations Act, the U.S. Supreme Court ruled on Jan. 10, because the statute’s “right to sue” clause does not invalidate an arbitration agreement.

In CompuCredit Corp. v. Greenwood, the justices continued a recent streak of decisions that favored arbitration of disputes. They reversed a ruling by the Ninth Circuit Court of Appeals that held the arbitration clause was void because it conflicted with CROA.

The plaintiffs in CompuCredit alleged that defendants misrepresented that a subprime credit card...
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