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San Francisco City Attorney Sues NAF

posted by Bob Lawless

My semi-favorite debt collector, er, I mean arbitration service, the National Arbitration Forum (NAF), has been sued by the San Francisco city attorney. The San Francisco Chronicle reports the story here. Different contributors have discussed the NAF here on Credit Slips (see here, here, here, and here), noting the high win rate for creditors and describing how the NAF acts almost as if they are a disguised debt collection agency. According to the article, the lawsuit makes very similar allegations against the NAF.

The lawsuit also names Bank of America as a defendant, which makes me wonder if that part of the lawsuit (not the part against the NAF) will be preempted under the Supreme Court's Watters decision from last spring (see here).


There seems to be a simple solution to this problem. The government maintains a list of qualified arbitrators and randomly assigns an arbitrator to each case. Each side gets three strikes. Once all strikes are used (i.e. by the time the seventh randomly chosen arbitrator has been appointed), nobody has any choice over the arbitrator any more.

victim of ID theft and bank employee actions. Bank's won't respond to two months of requests for documents. Took case to AAA - because I have a case against bank(s)treated badly. Told I would have to agree to a special open ended rate to bring case. So excluded from remedy. Sent complaint to State of CA Atty General - haven't heard anything. Now heading to Bankruptcy because can't get my case heard.

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  • As a public service, the University of Illinois College of Law operates Bankr-L, an e-mail list on which bankruptcy professionals can exchange information. Bankr-L is administered by one of the Credit Slips bloggers, Professor Robert M. Lawless of the University of Illinois. Although Bankr-L is a free service, membership is limited only to persons with a professional connection to the bankruptcy field (e.g., lawyer, accountant, academic, judge). To request a subscription on Bankr-L, click here to visit the page for the list and then click on the link for "Subscribe." After completing the information there, please also send an e-mail to Professor Lawless ([email protected]) with a short description of your professional connection to bankruptcy. A link to a URL with a professional bio or other identifying information would be great.