Arbitration Agreement With Bank In Illinois
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A clause that requires arbitration is known as a mandatory arbitration clause. Today's question is: Are such clauses enforceable in Illinois? The short answer is yes, and the long answer doesn't really change much.
Banks, like Wells Fargo, use forced arbitration clauses in their contracts, forcing customers to sign away their right to go to court when opening a checking or savings account or getting a debit card or credit card.
Opting out of the arbitration agreement isn't damaging to you. You can always do arbitration if you would prefer that, although if you'd like to join class actions or sue the judge will throw out your case if you are still in this agreement.
As a general rule you should opt out of arbitration when you sign any agreement with a company.
Arbitration might be the right choice for some cases. Limited discovery rights and costs might be useful when less is at stake. Arbitration might feel less adversarial, which could be an advantage where ongoing relationships are hoped to be preserved. Arbitration lends some confidentiality.
You have a difficult decision to make, although it may not matter whether you sign the “agreement” or not. If you continue to work after you are informed that a forced arbitration agreement governs your employment, you may be bound by it, even if you refuse to sign it.
Opting out of the arbitration agreement isn't damaging to you. You can always do arbitration if you would prefer that, although if you'd like to join class actions or sue the judge will throw out your case if you are still in this agreement.
This means that any disputes between customers and banks over account fees, identity theft, or other charges will be decided by an arbitrator that the bank helps choose, rather than an impartial judge.