Proposed Legislation Prohibiting Arbitration for Credit Counselor Agreements
Thanks to the National Arbitration Forum for this update on proposed legislation governing debt settlement and management service providers and credit counselors.
Verbatim: Enacts the Uniform Debt Settlement Services Act, the Debt Management Act, and the Credit Counselors Law to provide for the licensure and regulation of providers of debt settlement and debt management services. Relating to arbitration, the bill states:
Except as permitted by the California Arbitration Act (Title 9 (commencing with Section 1280) of Part 3 of the Code of Civil Procedure), [the agreement shall not] contain a provision that modifies or limits otherwise available forums or procedural rights, including the right to trial by jury, that are generally available to the individual under law other than as provided in this division.
The bill would also forbid agreements from containing a choice of law provision other than California or applicable federal law.
Arbitration gurus? How would this square with Greentree, etc.?




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