How To Refuse Arbitration  

The biggest arbitration organization is the National Arbitration Forum and it mostly handles the credit card disputes.

In credit card disputes the arbitrator will try to reach an agreement between you and the company. However, this cannot be considered as a court ordered arbitration. A court order only comes when you are sued.There is a growing concern in the way the arbitration cases are held because there are a trend which increasingly forcing consumers into mandatory arbitration. This is an unfair method to start with. However consumers should know that it is possible for them to refuse arbitration. It needs to be handled professionally in a legal way. You have to draft a legal letter refusing the arbitration.

A sample format of the letter that can be used to refuse arbitration for credit card payment disputes:

Your Name
Your Address

Re: account no.

Name of CA law firm

The firm’s address

To whom it may concern,

The undersigned through this letter refuses to take part in any arbitration process for the below mentioned reasons:

When the claimant tried to include arbitration into the agreement, there was no dispute between the two parties. Also, if the arbitration clause was part of the original agreement signed between the two parties, it is in violation of the Consumer Fairness Act and the Consumer Credit Protection Act.

In addition, the arbitration clause also is in violation of the Federal Arbitration Act, which makes any mandatory arbitration agreement in credit card contract void and therefore, unenforceable.

Furthermore, a forum chosen by the claimant to resolve the dispute is not considered by the respondent to be fair, and this violates the respondent's rights to a due process.

Also, the arbitration process offered by the credit card company just offers a 'take it or leave it' option leaving no room for any negotiation.

The changes in the credit card consumer agreement violate good faith and fair dealing. It is more of a coercion than arbitration, and therefore, the undersigned refuses arbitration.


It is necessary that you respond to any notice for arbitration in the same manner as you would respond to a legal lawsuit. And, the response should in accordance with the rules and procedures stipulated by the arbitration forum. If not, then the arbitration will decide in favor of the claimant.

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How To Refuse Arbitration

Legal Dispute :

National-Arbitration-Forum-Arbitrators      The National Arbitration Forum (NAF) was founded in 1986. Its prime goal is to make arbitration and mediation available for businesses. The forum's headquarter is based in Minneapolis, Minnesota, but it has offices in other cities also. More..




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