By: dmc-admin//July 20, 2009//
Boston (Dolan) – In a bombshell for consumer arbitration of credit card debt, the Minnesota Attorney General has filed suit against the National Arbitration Forum (NAF), alleging that the firm has worked closely with creditors and debt collectors behind the scenes against the interests of consumers.
Click here to read the complaint.
Among other things, the suit alleges that the NAF:
Paul Bland, staff attorney at Trial Lawyers for Public Justice in Washington, D.C. and opponent of mandatory consumer arbitration, called the allegations “scandalous” and “the most important consumer protection lawsuit I’ve seen in any court in years.”
The complaint alleges that the NAF has violated state laws against consumer fraud, deceptive trade practices and false advertising.
Last year, the city of San Francisco sued the National Arbitration Forum for unfair business practices, including not providing a hearing to consumers, not requiring evidence of the debt and rubber stamping debt amounts sought by creditors.