Just Before Hearings, Kucinich's Staff Report Slams ADR Provider's Practices (Web)
July 22, 2009
Yesterday afternoon, Ohio Democratic Rep. Dennis Kucinich released a report that says the National Arbitration Forum's consumer arbitration practices violated California law and had been "assisting in the violation of Delaware law."
Kucinich chairs the Domestic Policy Subcommittee of the House Oversight and Government Reform Committee, which today is holding a hearing on the subject, titled "Arbitration or ‘Arbitrary’: The Misuse of Arbitration to Collect Consumer Debts.” Details here.
On Sunday, the NAF settled a suit by the Minnesota Attorney General charging consumer fraud. In the settlement, NAF agreed to withdraw from the consumer arbitration field. Details here, and additional coverage here.
The report posted at the subcommittee's page yesterday afternoon--titled "Arbitration Abuse: an Examination of Claims Files of the National Arbitration Forum"--provides a laundry list of practices it concludes indicate that the NAF's arbitration practices were, in reality, debt collection mechanisms.
Kucinich's press release, and a link to the full staff report, can be found here.
--By Russ Bleemer, Editor, Alternatives