In Supreme Court, Public Citizen Litigation Group Defends Consumers' Right to Sue
Yesterday, Public Citizen Litigation Group attorney Scott Nelson appeared before the U.S. Supreme Court to argue that a law that creates a non-waivable right to sue does not allow companies to force consumers into mandatory arbitration. At issue is the Credit Repair Organizations Act, or CROA, which protects vulnerable consumers against unscrupulous businesses that falsely claim to help them rebuild their credit. CROA provides injured consumers with a cause of action for damages for violations of the statute, which it expressly labels a "right to sue." It also states that no right under the statute may be waived.
The Supreme Court, while issuing a series of pro-arbitration rulings, has always said that if a statute's language reflects a discernible intent to preclude waiver of the right to go to court, plaintiffs cannot be required to arbitrate their claims. This case tests whether the Court will stand by that principle when presented with a statute that specifically provides a non-waivable right to sue.
The case, CompuCredit v. Greenwood, began when a class of plaintiffs sued over the marketing of a credit card that was held out as a way of improving their credit, but in fact charged them hidden fees, failed to help their credit standing, and did not comply with a variety of protections offered by CROA. The defendants invoked arbitration clauses in the credit card agreements signed by the consumers, but both the district court and the U.S. Court of Appeals for the Ninth Circuit held that the arbitration clauses were unenforceable because the right to sue under CROA cannot be waived.
When the Supreme Court granted certiorari, the plaintiffs' lawyers asked Public Citizen Litigation Group to brief and argue the case. The case is the most recent of many in which Public Citizen defended individuals' access to the courts.
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Sincerely,
Allison M. Zieve
Director, Public Citizen Litigation Group