WTF?!?!!?? I have just received the following from Capital One. Iâ??ve been a card holder for over two years, Iâ??ve never seen anything like this before come out of the blue: â??Enclosed is an important legal notice regarding arbitrationâ?¦sent to inform you of an addition to the terms of your Customer Agreement [ ] governing the account referenced above. The enclosed IMPORTANT AMMENDMENT TO YOU CURSTOMER AGREEMENT changes the terms of the Agreement to add and incorporate an arbitration provision. [ ] All other terms of the Agreement remain in full force and effect. (the following in full bold caps) THE ARBITRATION PROVISION STATES THAT EITHER YOU OR WE CAN REQUIRE THAT ANY CLAIM (AS DECRIBED IN THE ARBITRATION PROVISION) BE RESOLVED BY BINDING ARBITRATION RATHER THAN IN A COURT OBY A JUDGE OR A J URY. THE ARBITRATION PROVISION MAY SUBSTANTIALLY LIMIT OR AFFECT YOUR RIGHTS, INCLUDING YOUR REIGHT TO GO TO CO URT, TO HAVE A TRIAL BY JURY, TO CONDUCT DISCOVERY, TO APPEAL, AND TO PARTICIPATE IN A CLASS ACTION OR ANY SIMILAR PROCEEDING. The Arbitration Provision will become effective on January 31, 2002. If you do not want the Arbitration Provision to become part of the Agreement, you must send us the rejection coupoin enclosed with the Arbitration Provision (â??Arbitration Rejection Couponâ?). In order to be effective, the Arbitration Rejection Coupon must be filled out completely. Specifically, it must be: · Completely filled in with your name, address, and account numberâ?¦ · Received by us on or prior ot January 31, 2002 · Mailed separately (i.e. not be included with a payment or any other correspondence) · Signed and dated by you and by any joint account holder. If you send us an Arbitration Rejection Coupoin complying with all of the above requirements, the Arbitration Provision will not become part of the Agreement at this time. If you do not comply with all of the above requirements, the Arbitration Provision will become part of the Agreement.
This brings me some questions: What happens if I do not agree and send in my "Rejection Coupon"? Has anyone else received this? This is for an account that is in good standing. No lates ever. Why would they try to ammend my original agreement for Arbitration? Who has been sueing them and for what? An Enquiring mind wants to know.
All major CC issuers have arbitration clauses now. The nice thing about this one is that Cap One allows you to reject the agreement without closing your account.
So If I reject it, what is to stop Cap One from treating me different, such as being less lenient when I request a credit increase, or dispute a charge?
That is a good question, and one I don't have an answer for. But I'd rather deal with being "unprofitable" in Cap One's eyes and choose to take my business elsewhere if they hold that decision against me than to give up my CONSTITUTIONAL right for due process in a court of law just so they'll improve my account. Credit is not everything.
Re: Cap 1 Sends Arbitration Amend. I received an amendment like this from Citibank as well as from Capital One. Citibank gave me the option to reject it but stated that my account would then be closed when the expiration date passes. Question... Would some kind legal-savvy individual out there care to translate what this amendment means in real English? Doc
Re: Cap 1 Sends Arbitration Amend. I think the key sentence is "The Arbitration Provision will not become part of the agreement AT THIS TIME. I also received this from citibank stating if I choose to reject it then once my card expired my account would be closed. I think the key word is AT THIS TIME, meaning possibly once your card expires this will be part of your future agreement in your renewal, I'd almost bet money on it.
Re: Cap 1 Sends Arbitration Amend. I spoke with Cap One executive offices about this and they said that there was no penalty for not agreeing, and no closing of the account at renewal time or anytime else. Of course, I'm sure they reserve their right to make that provision change when then deem necessary.
