Blasting Binding Mandatory Arbitration Clauses

What is Binding Mandatory Arbitration [BMA]?

In the video, gang rape victim, Jamie Leigh Jones, speaks to Congress about banning BMA Clauses.

Civil Justice Group, People Over Profits [PeopleOverProfits.com] defines BMA as "Tricking People Out of the Right to a Trial by Jury". That's a dead-on description.

Jamie Leigh Jones'' employment contract had a BMA Clause in it. Now she's demanding that BMA Clauses be banned.

What does this have to do with debt?

BMA Clauses are in many contracts. Auto Loans Cell Phones, employment contracts, Mortgages, contractor agreements and credit cards all have BMA Clauses.

A BMA Clause requires that any disputes that arise will be resolved via 3rd Party Arbitration.

On the surface BMA seems like a win/win. It's really a lose / win - YOU LOSE they win.

Up to 86% of the time the Arbiter, takes the side of the business over the consumer.

How does BMA work?

Businesses hire these Arbitration Companies. Next the business will place an BMA into their contracts. If you sign that contract, you just gave up all right to have your day in court.

In many cases, you also give up your rights to joining a class action Lawsuit.

For example; let's say you were cheated by a contractor who did faulty work, overcharged you, and double-billed you?

If your contract with the contractor has a Mandatory Arbitration Clause, you have given up your right to a fair trial by Jury. You have to accept whatever the Arbiter decides.

Word to the wise, beware of BMA Clauses. Have your lawyer review the contract before you sign it.

What do you think about BMA? Let us know by leaving a comment.