Target RedCard Arbitration
Sep. 21st, 2022 08:22 pm![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png){kind=small}
livingdebThe required annual notifications I got regarding my RedCard debit card today include a change in the contract: the addition of binding arbitrations. You can opt out. Using snail mail. Should I?
My first question is what is Target afraid of? Frivolous law suits or having to pay for their mistakes? I don't see a way to get that answer.
(One weird thing: Issues are resolved under the law of South Dakota, but all notifications are sent to a Target address in Minnesota.)
So I looked for general advice.
NOLO says pros include that arbitration is nicer, cheaper, and quicker than going to court. Cons are that decisions tend to be biased against the consumer and they are final and secret and are getting more expensive.
Creepy: 'According to a recent study by the Federal Mediation and Conciliation Services, the average time from filing to decision was about 475 days in an arbitrated case, while a similar case took from 18 months to three years to wend its way through the courts.'
A more opinionated source says they can prevent class action suits, which this one does, and that it is amazing how horrible a decision can be (based on lies, a misunderstanding of the law, etc.) and still not be overturnable, but that civil trials can be even more biased against the consumer.
It probably won't make any difference what I decide. But you can still request arbitration if you opt out of giving up your rights to use the courts. So I think I'll go ahead and opt out. (However, I'm not going to send it via certified mail, return receipt requested, as recommended by Consumer Reports.
I'm hoping this won't mark me as a trouble maker who now should have her card canceled.
My first question is what is Target afraid of? Frivolous law suits or having to pay for their mistakes? I don't see a way to get that answer.
(One weird thing: Issues are resolved under the law of South Dakota, but all notifications are sent to a Target address in Minnesota.)
So I looked for general advice.
NOLO says pros include that arbitration is nicer, cheaper, and quicker than going to court. Cons are that decisions tend to be biased against the consumer and they are final and secret and are getting more expensive.
Creepy: 'According to a recent study by the Federal Mediation and Conciliation Services, the average time from filing to decision was about 475 days in an arbitrated case, while a similar case took from 18 months to three years to wend its way through the courts.'
A more opinionated source says they can prevent class action suits, which this one does, and that it is amazing how horrible a decision can be (based on lies, a misunderstanding of the law, etc.) and still not be overturnable, but that civil trials can be even more biased against the consumer.
It probably won't make any difference what I decide. But you can still request arbitration if you opt out of giving up your rights to use the courts. So I think I'll go ahead and opt out. (However, I'm not going to send it via certified mail, return receipt requested, as recommended by Consumer Reports.
I'm hoping this won't mark me as a trouble maker who now should have her card canceled.