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Judge refuses to dismiss collusion claims against Citigroup and Discover for mandatory arbitration clause

By  |  February 9, 2012
Judge refuses to dismiss collusion claims against Citigroup and Discover for mandatory arbitration clause

U.S. District Judge William Pauley refused to dismiss plaintiffs’ claims of collusion by Citigroup and Discover over arbitration clauses. The lawsuit alleges that credit card holders were forced to agree to mandatory arbitration clauses, and if consumers refused, Citigroup and Discover did not issue them cards. Judge Pauley noted the defendants’ adoption of an arbitration clause that was similar to competitors’, as well as their attendance at meetings to discuss arbitration between 1999 and 2003.

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    Other card issuer defendants, including Bank of America, Capital One, and JP Morgan Chase, have since settled.

    Source: Reuters

     

    Related content: Anticompetitive Regulation in the Payment Card Industry (Ronald Mann, Columbia Law School)