No. of Recommendations: 0
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?

If you don't approve, you have the right to sue in court or, if both parties agree, go to arbitration. However, if you approve, you lose the right to sue in court and are forced into arbitration. (The banks will explain it in reverse, if you agree they lose the right to sue you in court and are forced into arbitration. Don't buy this.)

As they see it, courts and juries favor the consumer and the spirit of the law, which is consumer protectionist. Arbitrators are less consumer oriented, but are fair and follow the letter of the law. This isn't to say that arbitration isn't fair, it just doesn't have a consumer bias.

Given the choice, I wouldn't agree to these terms. There is no business reason for you to agree. However, its hard to get a new credit card these days without agreeing to arbitration as part of the cardmember agreement.

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