After being sued by the Minnesota Attorney General’s Office, the National Arbitration Forum (NAF) has agreed to pull out of the credit card arbitration business. The MN AG’s suit alleged consumer fraud, deceptive trade practices, and false advertising. The suit alleged conflicting ties between NAF and debt-collection law firms that represented major credit-card companies. The suit also alleged that Accretive LLC owned stakes in such collection law firms and the NAF, sending arbitration business between the two.
The settlement between NAF and the MN AG’s Office, includes that, by the end of this week, NAF will stop accepting new consumer arbitrations of any sort. These include arbitrations over disputed credit-card debt as well as new lines of business the NAF has moved into, such as arbitrating consumer debts in healthcare, telecommunications, utilities, mortgages, and consumer leases.
You can read more about the settlement:Â http://tinyurl.com/n8bd2w.
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