Arbitration Clauses in Consumer Loan Agreements are Unconscionable According to Latest ABI Quick Poll

Contact: John Hartgen

            

703-739-0800

            

jhartgen@abiworld.org

size='3'>ARBITRATION CLAUSES IN CONSUMER LOAN AGREEMENTS ARE
UNCONSCIONABLE, ACCORDING TO LATEST
w:st='on'>
size='3'>ABI QUICK
POLL

size='3'>April 23, 2008, Alexandria, Va.
size='3'>— A majority of respondents in a recent

size='3'>ABI Quick Poll strongly
agreed that arbitration clauses in consumer loan agreements are
unconscionable. Fifty-six percent of respondents “strongly
agreed” and 12 percent “somewhat agreed” that
arbitration clauses in consumer loan agreements are
unconscionable.

Twenty-eight percent of
respondents, however, did not think that arbitration clauses in consumer

loan agreements were unconscionable. Nineteen percent “disagreed
strongly” and 9 percent “somewhat disagreed” that
arbitration clauses in consumer loan agreements are
unconscionable.

In the case of
Tillman v. Commercial Credit
Loans (N.C. Sup.
w:st='on'>
size='3'>Ct., 1/25/08),
the North Carolina Supreme Court determined that an arbitration clause
in a consumer loan agreement was unconscionable. The Court found that an

arbitration clause within the loan agreements made by Commercial Credit
Loans exposed its customers to unreasonably high costs, making it
financially unfeasible for the customers to even bring a claim
forward.

face='Times New Roman' size='3'>ABI
size='3'>members and members of the public were welcome to submit their
response to the statement: “Arbitration Clauses in Consumer Loan
Agreements are Unconscionable (
size='3'>Tillman v. Commercial Credit Loans
size='3'>(N.C. Sup.
w:st='on'>
size='3'>Ct.,
1/25/08).”

face='Times New Roman' size='3'>ABI
size='3'>’s Quick Poll is posted on
w:st='on'>
size='3'>ABI’s home
page, www.abiworld.org.
face='Times New Roman' size='3'>ABI
size='3'>members and the public are invited to respond to a question on
a timely bankruptcy or insolvency issue. Visit
href='http://www.abiworld.net/quickpoll/'>
color='#0000ff'
size='3'>http://www.abiworld.net/quickpoll/to access the results of previous

size='3'>ABI Quick
Polls.

###

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