Forced arbitration is a legal process that keeps a lawsuit from going to the public courts with juries. Instead, the case is handled privately by a disinterested third party. Unlike public court, any information from the case is not released to the public. These cases usually rule in favor of the employer or company, or in this circumstance, JPMorgan Chase.
JPMorgan Chase is trying to reintroduce a forced arbitration clause they got rid of ten years ago. They agreed to temporarily drop the clause after a class-action lawsuit in 2009 that argued large banks work together to force customers into arbitration. Chase continued with the lift on the clause into 2016 because the Consumer Financial Protection Bureau (CFPB) issued rules that prohibited mandatory arbitration for financial products, including credit cards. In a way, CFPB agreed with the 2009 ruling: consumers deserve their day in court. But in 2017, President Trump overturned the rules. Now, 72% of banks use arbitration clauses. According to Patricia Wexler, a JPMorgan spokesperson, arbitration is already “standard practice” for their consumer banking and auto loan business, and so they want to extend the policy to their credit card accounts.