Buried within the fine print of many consumer contracts for credit cards, home-building contracts and car purchases are clauses that stack the deck against ordinary Americans and force consumers to give up their rights before a dispute even occurs. This is called "pre-dispute Mandatory Binding Arbitration."
Rep. Sean Flaherty (D-Scarborough) knows all too well the dangers that Mandatory Binding Arbitration Clauses pose to consumers. In 2007, Flaherty, worked in Washington, DC to support federal legislation that would ban the use of such clauses in contracts nationwide.
"I was part of my job to research cases and prepare people who had been victimized by these clauses to testify before Congress," Flaherty said, "I met some incredible people who signed contracts for a new home, a new family car, or even employment without even realizing that if a problem was to arise, they would have no recourse whatsoever.