Bsoton, MA: Capital One Financial Corp has agreed under the terms of a settlement reached earlier this week, to drop language from its credit card contracts that stipulate customers handle disputes with the finance company via binding arbitration rather than through the courts.
Next month, Capital One customers can expect to receive new contracts that do not contain the mandatory arbitration clause, according to news reports. Capital One follows JPMorgan Chase & Co who reached a similar agreement in November, and Bank of America Corp, who similarly settled earlier in the week.
These settlements leave Citibank, Discover, HSBC and the National Arbitration Forum as the four remaining defendants in the class action which was brought on behalf of card holders whose contracts contain the mandatory binding arbitration clause.
