Carreon and Associates Credit Repair Blog:

Thanks to a ruling from the U.S. Supreme Court, credit card disputes between lenders and consumers can no longer be settled in court. The ruling, reported today by Credit.com is worrisome to credit card carriers because it further enforces the arbitration clause so many of us already dread.

Over the recent years, credit card companies began adding arbitration clauses to cardholder agreements in an effort to thwart legal actions down the road. This ruling will further water down consumer’s rights because most arbitrators will no doubtably be favored. As the credit.com article points out, “whose an arbitrator going to likely side with, a consumer they’ll never see again or lenders who send them business”.

Things on the credit front may not look so bad though because clearly this isnt over. Consumer protection agencies, consumer advocates and non lender biased organizations will be all over this ruling.

Fortunately this should have no impact on taking bill collectors to court because those complaints are usually born out of FDCPA violations, not issues with the credit card itself or original cardholder agreements.