Why is Binding Arbitration bad?
Arbitration is like playing cards with the deck stacked against you. The person who is going to decide what the manufacturer or dealer should do for you, is chosen by them and often paid by the manufacturer or dealer. When their paycheck depends on repeat business from “big business,” fairness can oftentimes take a back seat to the interest of turning a profit. Worse yet, some auto arbitration clauses require you to pay for the arbitration and if you lose they can make you pay for the car dealer’s legal fees too. That could cost you more than if you were able to simply file a lawsuit in the first place. Because there are consumer protection laws that make the defendants pay attorney fees, the court process can actually cost you much less than the binding arbitration clause. Click here to learn more.
