Court: credit card claims must be arbitrated

The U.S. Supreme Court ruled yesterday that credit card claims by consumers under a 1996 law must be handled in arbitration, not in court, Reuters reported. By an 8-1 vote, the justices overturned a ruling by a U.S. appeals court in San Francisco that the language in the law, the Credit Repair Organizations Act, was intended to bar arbitration of claims. The ruling in favor Synovus Financial Corp. and CompuCredit Holdings Corp. was the latest in a series by the Supreme Court in recent years that generally favored arbitration. Businesses support arbitration as a less costly way to settle customer and other disputes as opposed to facing lawsuits in court.

The U.S. Supreme Court ruled Tuesday that credit card claims by consumers under a 1996 law must be handled in arbitration, not in court, Reuters reported. By an 8-1 vote, the justices overturned a ruling by a U.S. appeals court in San Francisco that the language in the law, the Credit Repair Organizations Act, was intended to bar arbitration of claims. The ruling in favor Synovus Financial Corp. and CompuCredit Holdings Corp. was the latest in a series by the Supreme Court in recent years that generally favored arbitration. Businesses support arbitration as a less costly way to settle customer and other disputes as opposed to facing lawsuits in court.