Wells Fargo, which recently owned up to questionable banking practices, is also used a binding arbitration clause in the legitimate accounts victims had to avoid lawsuits stemming from the fake accounts they created.
State Rep. Mike Weissman says the clauses are in the fine print of virtually every contract, whether you sign up with a cellphone carrier or cable company even day cares and nursing homes.
“And then down the road something goes wrong and you may have your back up against the wall and need to go to court — you find you can’t because that right was signed away in a bargaining situation where you really had no say,” said Weissman, a Democrat from Arapahoe County.
Weissman plans to carry legislation that would make arbitrations fairer to Coloradans so they happen in Colorado by a neutral arbitrator.
“I think the reality is arbitration clauses are bearing down on probably most residents of Colorado right now in some contract that they’re party to, whether they know it or not.”
Weissman says he will introduce a bill in the next legislative session that requires more transparency when it comes to arbitrations and a level playing field, or an arbitration could be voided.