Why You Probably Can’t Sue Your Bank
13th December 2012
For better or worse, Americans tend to take it as an article of faith that if someone does you wrong, you can sue. But banks are quietly adding language to their account terms and services that take away your right to a day in court, and the law is on their side. In lieu of lawsuits, they require mandatory arbitration, which basically means that you can’t sue your bank in court, but instead are forced to have disputes resolved by a designated arbitrator, a kind of professional referee. Banks often combine arbitration clauses with language that also prohibits customers from banding together to file a class-action lawsuit.