U.S. News & World Report: Why Your Financial Service Agreement Includes Arbitration
Ross Pearlson was quoted in a U.S. News & World Report article titled "Why Your Financial Service Agreement Includes Arbitration." According to Ross, "The customer agreements of most financial services firms still contain pre-dispute arbitration agreements, or PDAAs, which are generally presented to clients on a take-it-or-leave-it basis."
Many customers don't focus on the implications of this requirement when they are opening an account and "will not be aware that they can be waiving their ability to recover punitive or consequential damages, or limiting their right to know the basis for the award or to appeal," he says. "The imbalance in negotiating leverage and knowledge definitely affords the financial services firm the opportunity to stack the deck in its favor in drafting and presenting the PDAA."
To read the full article, please visit the U.S. News & World Report's website.