Consumers are using arbitration as a fast, inexpensive and non-threatening way to solve disputes over faulty products and services. Companies are increasingly following the lead of the major banks by adding arbitration clauses to their customer's accounts.
Arbitration is good for businesses and consumers.
Companies report that they can use arbitration to collect delinquent accounts quicker and cheaper. Arbitration replaces the expense of paying an attorney to simply write a legal-sounding collection letter to the debtor, allowing creditors to reduce collection and litigation expenses. Companies and their customers also report an excellent quality of decision-making in arbitration because their cases are decided by arbitrators who are experienced attorneys and who understand business and contract law. First, parties need to insert an arbitration clause into their agreements. Arbitration clauses are many and varied.