CompuCredit Corp. v. Greenwood - Shelby Harcher
CompuCredit promised to repair consumer's credit cards without charging any deposit. Wanda Greenwood is suing because she claims that she was charged almost $300 in fees before receiving her card. Under the Credit Repair Organizations Act, or CROA, prohibition was set on charging fees. Also, under this act, consumers are given the right to sue for any violations. CompuCredit wanted to get someone to come and look over Greenwood's contract with them, and settle the dispute. Settling the problem informally would have stripped the consumers from their rights (to a jury, access to all documents etc.) Arbitrators, the people who come in and settle the dispute, are usually hired by the people who made the contracts.
The main issue in this case is that, under the CROA, consumers are allowed to sue, but forced arbitration was usually used. The National Senior Citizens Law Center and AARP claim that CROA is protecting it's costumers and that they know that they can sue and take the steps necessary to do so and that the document itself prevents companies from being able to force arbitration. However, others feel differently. Credit repair scams happen all the time. High fees are usually charged and arbitration is usually used. I'm not sure what's going to happen with this case, but I believe that companies are going to be looked after more, making sure that they follow the CROA and don't force arbitration. Under the Constitution, it states that all people have the right to a jury of their peers, and being forced to have an arbitrary, doesn't seem fair at all. I believe that the Supreme Court will rule in the favor of the consumers.
The main issue in this case is that, under the CROA, consumers are allowed to sue, but forced arbitration was usually used. The National Senior Citizens Law Center and AARP claim that CROA is protecting it's costumers and that they know that they can sue and take the steps necessary to do so and that the document itself prevents companies from being able to force arbitration. However, others feel differently. Credit repair scams happen all the time. High fees are usually charged and arbitration is usually used. I'm not sure what's going to happen with this case, but I believe that companies are going to be looked after more, making sure that they follow the CROA and don't force arbitration. Under the Constitution, it states that all people have the right to a jury of their peers, and being forced to have an arbitrary, doesn't seem fair at all. I believe that the Supreme Court will rule in the favor of the consumers.
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