Table 1 presents the results of a 2011 study comparing the overall results of the study in mandatory arbitrations and litigation. The comparison examines the results of 1,213 mandatory arbitration proceedings handled over five years by the American Arbitration Association, the country`s largest provider of arbitration services. These are compared with the results of studies on workplace discrimination cases in federal courts and non-citizen employment cases before national courts. With regard to the content of these mandatory arbitration procedures, the main result of the CFPB study is that more than 90% of them explicitly prohibit class actions. Given the relatively small amounts of many consumer financial transactions and the similarity between claims, the availability of class actions is an essential element of access to justice for consumers` financial claims. Nothing, even if its arbitration is “voluntary”. In fact, you still have the right to arbitrate. But you never want to give the right to file a complaint if arbitration doesn`t work. Companies want you to grant this right because they have an advantage in arbitration and they can escape liability. Ask your employer if you have the choice to sign the agreement. Some courts and state lawmakers have tried to oppose the radical change in the civil justice system, but with little success. The Supreme Court stated that the Federal Arbitration Act embodied a liberal federal policy in favor of arbitration and that the law should be enforced by both public and federal courts. The court repeatedly finds that the law suspends any state law or judicial doctrine that impedes arbitration.

The most damaging development in arbitration is the linkage between arbitration and class action waivers. In the late 1990s, large corporations began introducing class action bans in arbitration clauses for consumer transactions. Indeed, in 1999, the 10 major credit card-issuing banks — including American Express, Citibank, First USA, Capital One, Chase, and Discover — formed a group called the Arbitration Coalition to encourage the use of arbitration clauses that prohibit class actions. This group has also co-funded and co-authored Amici Curiae`s briefs to persuade the Supreme Court to enforce these clauses.1 In part because of their efforts, courts generally allow arbitration to be subject to class action bans, both consumer and employment lawsuits. .