Arbitration

Binding arbitration clauses are inescapable. They appear in all forms of consumer contracts, big and small. Virtually every time you use a credit card, join a gym, buy a car or use your cell phone you are giving up your legal rights. If you have a dispute with one of these companies, you are forced into a closed, costly, and tilted process without any appeal or public record.

Federal law limits what states can do to rein in the use of arbitration. But states have the power to ban mandatory binding arbitration in insurance contracts and improved disclosures. The insurance industry in Texas has shown time and time again its propensity for taking advantage of consumers. Getting rid of this system is one step toward leveling the playing field for policyholders and consumers.

Have you been made to participate in binding arbitration? Please share your story with us.

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Eye on Texas Blog

Special Interest PAC Can’t Handle the Truth

February 14, 2014—Access to the civil justice system is a fundamental right. It is embedded in our constitution because no one is above the law and everyone should be held to account for their actions. But, the folks over at the self-styled Texans for Lawsuit Reform’s PAC of CEOs and lobbyists just can’t seem to understand that.... Read more »

Eye on Texas Blog

UPDATED: Feds to Consider Banning Forced Arbitration During Dallas Hearing

December 10, 2013—UPDATE: Texas Watch testified before federal regulators about the dangers forced arbitration poses to consumers. Our Director of Legislative Affairs Ware Wendell told Richard Cordray, the director of the Consumer Financial Protection Bureau (CFPB), that forced arbitration “is flawed in many respects. It precludes class actions, is largely unappealable, has limited discovery, is subject to... Read more »

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Research & Reports
Research & Reports

The Texas Watch Foundation, a non-partisan 501(c)(3) organization, conducts research and public education activities on consumer law, consumer protection and civil justice issues. Read More »

Court Watch
Court Watch

Court Watch, a program of the Foundation, documents the role and impact of the Texas civil court system on Texas families and Texas public policy. Read More »