National Arbitration Forum Highlights New Independent Study Demonstrating That Arbitration...

National Arbitration Forum Highlights New Independent Study Demonstrating That
Arbitration Offers Benefits for Consumers
Comprehensive Data Confirms that Arbitration Offers Favorable Outcomes,
Reduced Award Payments, and Lower Fees for Consumers in Disputes with Credit
Companies

MINNEAPOLIS, July 22 /PRNewswire/ -- The National Arbitration Forum
(FORUM) today highlighted a comprehensive and independent new study released
last week by the U.S. Chamber Institute for Legal Reform which demonstrates
that arbitration yields more favorable outcomes, lower fees, and significantly
reduced claim payments for American consumers than the same cases would likely
produce in court. An earlier analysis by Public Citizen released in September
2007 utilized a subset of the same arbitration data and drew incorrect
conclusions about the benefits of arbitration for consumers.
"At a time when court dockets are overcrowded and attorney fees are
increasingly unaffordable for the average American, consumers need fair,
affordable and timely access to justice," said FORUM Director Roger Haydock.
"The comprehensive new arbitration analysis confirms that arbitration is a
fair and effective way for consumers to resolve legal disputes."
The analysis, performed by Navigant Consulting on behalf of the U.S.
Chamber Institute for Legal Reform, considered 34,000 arbitration cases
involving California consumers from 2003 to 2007 and concluded that:
-- Consumers prevailed in arbitration proceedings at the same or a higher
rate than they did in debt collection lawsuits. According to the study,
consumers were successful in 32.1% of arbitration cases. In these cases,
consumers either won their claim before a neutral arbitrator, or had the case
dismissed outright before arbitration proceedings began.
-- Claims against consumers were significantly reduced even when consumers
did not win outright. Claims brought against consumers were reduced in an
additional 16.4% of cases. Of cases that went to hearing where the consumer
did not prevail, claims against consumers were reduced in 37.4% of cases with
a median reduction for consumers of $824.
-- Consumers rarely paid fees for arbitration -- unlike court cases. In
the 33,935 cases where an arbitration fee was paid, the consumer did not pay
any fee in 99.3% of the cases. In the 0.7% cases where the consumer paid an
arbitration fee, the median fee paid was $75.
-- Arbitration protected consumers even when consumers were not present.
Claims against consumers were reduced in 22.6% of cases heard in which the
consumer failed to show up for the hearing or respond in any way, suggesting
that consumer rights were given consideration even when the consumer was not
represented.
"By including analysis of only a subset of the available data in its
report, Public Citizen did not portray an accurate or full picture of the
benefits that arbitration provides American consumers," continued Haydock.
Specifically, the September 2007 Public Citizen report does not include
analysis of:
-- More than 8,000 cases that were dismissed. Consumers were identified as
the prevailing party in 8,528 cases that were either dismissed outright or
because the consumer was able to resolve the dispute outside of arbitration.
-- Consumer claim reductions. Nearly 38% of consumers who did not win
arbitration hearings outright had the claims against them reduced. The median
reduction was $824.
-- Actual arbitration fees paid by consumers. Unlike in court cases, where
consumers often pay onerous fees, 99.3% of consumers in the California
arbitration cases did not pay any fee at all.
For the full results of the U.S. Chamber Institute for Legal Reform
arbitration analysis, please visit:
http://www.instituteforlegalreform.com/issues/docload.cfm?docId=1212
For additional resources, analyses, articles and studies on the benefits
of arbitration for resolving disputes, please visit:
http://www.adrforum.com/BenefitsofArbitration
About the National Arbitration Forum (FORUM)
The National Arbitration Forum (FORUM) is a world leader in dispute
resolution. The FORUM provides fair, affordable, and accessible civil justice
to all through recruitment, selection and management of a highly experienced
and distinguished panel of over 1,600 former judges and seasoned lawyers.
Expert FORUM arbitrators and mediators apply reasonable rules and substantive
law to resolve disputes. The FORUM is the faster, lower-cost and superior
alternative to litigation that ensures parties receive the same outcomes they
would in court. http://www.adrforum.com
SOURCE The National Arbitration Forum

Christina Doucet of The National Arbitration Forum, +1-952-516-6486,
media@adrforum.com