No. of Recommendations: 0
I got the same notice for my MBNA card. It was very clear about writing a letter to reject the arbitration clause, and where the letter should be sent. What it was not at all clear about was whether rejecting the arbitration clause would require cancelling the card or if using the card would imply acceptance of the clause (it said nothing at all on this score). Very interesting. I also found it quite interesting that in the poll associated with the BankRate.com article Leviathan posted below, 97% of the respondents said that customers should retain the right to sue CCC's. I think it would be a good idea to alert our fine representatives in DC about this issue.

If it really is true that the arbitration clause can be rejected with no adverse effect on my account, then I would say this is a marginally acceptable way of MBNA handling it (certainly better than "take the clause or cut up the card").

WildcatFool
:-)


Is arbitration less favorable to the customer (i.e. me)? Would it be more likely to favor MBNA? What sort of items would go into arbitration? Should I take the time to write
a note to preserve my current rights and should I send it certified mail or what? Or should I even care?

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Yes, arbitration is less favorable to the customer. By accepting these new terms you will have waived your right to sue them over any dispute. Here's a link to a bankrate.com article
that gives more detail:

http://www.bankrate.com/brm/news/cc/19990920.asp

Definitely take a look at it. Also, my guess is that the notice sent to you says that if you use the card you agree to the new terms so I don't think sending a letter to preserve your
rights will do any good.

Leviathan

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