here’s what to do:
you can fight back! you can help us stop bma (binding mandatory arbitration) abuse. read more about bma in various clauses below.
bma in credit card clauses
credit card action! most credit cards issued by national banks have bma clauses. if your credit card has a bma clause, transfer your balances to cards without these clauses and consider closing your account with the offending companies. send a letter explaining why when you close your account (word / pdf).
- aarp credit cards do not have these clauses.
- most credit union credit cards do not have these clauses.
- some small bank credit cards do not have these clauses.
bma in mortgage clauses
getting a mortgage? the vast majority of mortgage companies have bma clauses. you can protect yourself in several ways:
- make sure your mortgage qualifies for either a fannie mae or freddie mac loan. neither fannie mae nor freddie mac allows bma clauses in their loans (does that tell you anything?)
- get your mortgage through a credit union or independent financial institution. make sure that institution does not have a bma clause.
bma in installment loan clauses
getting an installment loan? a car loan? vacation loan? education loan? buying furniture? the vast majority of financing institutions have bma clauses. virtually all sub-prime lending companies have these clauses. don’t finance with them
- check with your local credit union or other independent financial institution. most credit unions and some small banks do not have bma clauses.
- if you currently have a loan with a bma clause in it, see if a credit union or other financial institution might refinance your loan.
bma in regular bills and statements
how about bma clauses in your regular monthly bills and statements? you’re going to have a hard time finding a phone company or insurance company or cable television company that doesn’t have a bma clause. but you can still fight back.
download our statement stuffer (word / pdf) and begin including one of these every time you mail a check or letter to an offending company [note: this may not be accepted by the company, but it will help us highlight your concern. read this explanation (word / pdf)].
consider striking out any bma clauses. while this action may not cancel the clause, it does alert the company that you are dissatisfied. read our caution on this. (word / pdf)
how about the credit reporting bureaus? when you ask for a free credit report, you are now generally required to sign a bma clause. include a copy of our stuffer. (word / pdf)
can you negotiate away these clauses? give it a try. some companies will allow you to strike through their bma clauses. others give you the right to opt out of them. when you are dealing with any company, always tell them you will not sign a bma clause.