Nussle to Senate Judiciary: Don’t end arbitration

America’s Credit Unions President/CEO Jim Nussle this week urged Senate Judiciary Committee Chairman Sen. Dick Durbin, D-Ill., to abandon any plans that might alter the mandatory arbitration system some credit unions use to resolve disputes with members.

“Arbitration can be an efficient means to resolve legal disputes between parties and the choice to include arbitration agreements in contracts is highly dependent on the credit union’s policies, priorities, and resources,” Nussle wrote in a letter to Durbin.

The Judiciary Committee held a hearing on arbitration on Tuesday. The hearing featured witnesses who said they were harmed by having to go through arbitration after filing complaints, such as sexual harassment allegations, against their employers.

During the hearing, Durbin indicated that he has serious problems with the current system of mandatory arbitration. “Instead of having their day in court, [people] are forced into arbitration by the fine print buried deep in employment contracts, product manuals, and terms of service,” he said. The process, he added, is overseen by arbitrators who often are biased toward corporations and who are not bound by precedent.

 

continue reading »