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Read the fine print in your credit card contract… It could make a huge difference
Did you know that when you sign up for a credit card, you might be giving up your right to sue the credit card company? According to a 2005 Consumer Action survey, nearly half the banks that issue credit cards require you to give up this right and instead resolve a complaint through arbitration.
So, if you have a dispute, then remember that suing your credit card issuer may be out of bounds for you. You possibly have to go through an arbitration, which is a private process and takes place outside a courtroom. What you can expect is an independent arbitrator or a panel that will hear your case. And you may not have the right to appeal an arbitration decision. In case this method of finding a solution to your problem doesn’t bode well with you, then you may have to look for options. Since the number of issuers who require arbitration to settle disputes are less than 50 percent of the total, you could always switch to another credit card issuer. Usatoday.com reports:
Multiple lawsuits are now winding their way through the court system, challenging the validity of arbitration clauses in credit card and other consumer-product contracts.
Read more: Here's a map for dissecting credit card fine print
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