Is Arbitration Perverting Justice?

Arbitration is an ancient method to resolve disputes outside court. It dates to King Solomon’s private resolution of a maternity dispute. Today, it is a method for large corporations to gain huge leverage over workers, consumers, tenants and other “little people.” Investors are buying up uncollected debt on the cheap. They sue in court, and win a garnishment order. In the story below, the little guy has his Social Security benefits docked. The problem for the little guy: He wanted to challenge the debt he accrued but was denied access to court because he was compelled to agree to arbitration. The investor who bought up his debt had no such restriction, however. He went to court—with minimal forum fees—and won an enforceable order. Bottom line: Access to courts is determined, to a growing degree, by a person’s wealth—not by their need. (Thanks to Alan for this lead, here. )