The Supreme Court ruled 8-1 on Tuesday that disputes between consumers and companies that issue low-rate credit cards to people with poor credit ratings can be handled in arbitration.bounce house sales canada
The ruling in CompuCredit Corp. v. Greenwood reverses a federal appeals court ruling that allows consumers to sue in federal court. The consumers said that they were promised an initial $300 in available credit but were then charged $257 in fees the first year they had the card, the Associated Press reports.
The court agreed with the companies’ argument that the dispute has to be settled through arbitration due to an agreement the customers consented to in writing when signing up to receive the card. Justice Ruth Bader Ginsburg was the only vote against the ruling.
President Bill Clinton signed the federal Credit Repair Organizations Act in 1996, which states that consumers have a right to sue, according to the AP. A federal appeals court in San Francisco interpreted this as a right to go to court, rather than to be forced to submit the case to arbitration. Appeals courts in Philadelphia and Atlanta ruled otherwise when evaluating the same language in the law.
The Supreme Court resolved the conflict in favor of arbitration among the appeals’ courts decisions.