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Do This With Every Credit Card- Including Apple Card

Do This With Every Credit Card- Including Apple Card

With so much talk about the new Apple credit card coming out, I thought it'd be a really good time to make an article about it. One thing that you should really do every single time you open up a new credit card and that includes the new Apple card. And that is to opt-out of the forced arbitration clause or provision in pretty much every single credit card agreement out there. And it's important to know because usually there is a set time limit for when you can opt-out of this within the time frame that you open the card.

So for example with the Apple card, it's within 90 days. So if you are looking to open up an Apple card or in the future at any point you open up a new credit card then it's important to know what I'm gonna talk about in this article.

So first we can quickly go over what binding arbitration is why you should probably opt out of it whenever you have the chance. And of course, show you how easy it is to do at least with the Apple card and then go over how to deal with other cards too.

What is arbitration?

Well, first of all, you probably understand that if a company or someone screws you over then you can Sue them take them to court go in front of a judge in front of a jury, and then the decision will be made there. With arbitration, you don't go to court. Instead, you go to a third party outside the court system and then a third party known as an arbiter. No not the same arbiter from Halo. This is basically just either a company or its person who both parties agree. Okay, this person is gonna make the decision instead of a judge.

And in theory in the right circumstances, arbitration is not necessarily bad. In a lot of cases, it's a lot faster and cheaper to go through arbitration. Then it is a full-blown court lawsuit and there's really no problem with it as long as both parties genuinely agree. All right, Let's just do this through arbitration instead of going through the court.

But the problem is when binding arbitration comes along. And the problem with a lot of these contracts that you sign and don't read is they have a binding arbitration or forced arbitration clause in there which basically says you can never take us to court. You have to go through arbitration if you want to Sue us. And most people they agree to this without actually agreeing to it because they don't understand it or they don't even read the agreement before accepting it like most people do these days.

But if you were to opt-out then you would still have the option to go to arbitration if you wanted to. But you would also have the option to actually go to court if you wanted to which a lot of times for the customer or the consumer is the better option sometimes. But if you don't opt-out and something happens between you and the company well you're kind of screwed. You don't have a choice. You have to go through third-party arbitration. 

So why is binding arbitration so bad then?

Well first of all it really restricts you on your options. Like I talked about, for example, it prevents you from being able to participate in a class-action lawsuit. So say a company screws over a ton of people a ton of customers and then they all want to collectively Sue the company to punish it and get some of that back. You can't do that. If you agree to the arbitration clause you would have to if I'm not mistaken basically have each individual person goes and Sue the company in arbitration which is going to cost the customers a lot more money to individually do that.

Probably not a lot of people are going to do that. Whereas with a class action lawsuit I believe a lot of times these lawyers work on contingency meaning they get a percentage of the profits of the winnings. And a lot of times if you participate in a class action lawsuit you might benefit from it but then you might not even have to put any money upfront. It's just kind of happening. And then if they win you get a little bit from it where I don't believe if you did this agreement.

Another problem is that if you agree to arbitration you end up going to arbitration.

The company is the one that is going to pick the arbiter the third party so they get to pick who decides on the case. That's not the case. If it's like going to court obviously you don't get to pick the judge but that is the case which is going to be clearly possibly a conflict of interest. If the company chooses the same arbiter every time there's an arbitration agreement then the arbiter is going to know well if we don't decide with the company a lot then they're going to go to someone else. There's a business clear conflict of interest.

Another problem is my understanding is if you go to arbitration and you lose then there is no option for appeal like you might have with a court.

Why don't I give you an example? Here's the Apple Card provision with the whole binding arbitration thing. It says right in the agreement by accepting this agreement or using your account. Unless you reject arbitration as provided below you acknowledge that you are giving up the right to litigate claims as defined below and the right to initiate or participate in a class action. You hereby knowingly and voluntarily waive the right to be heard in court or have a jury trial on all claims.

So subject to this Agreement you further acknowledge that you have read this arbitration provision carefully agree to its terms and are entering into this agreement voluntarily and not in reliance or any promises or representations whatsoever except those contained in this agreement.

Do This With Every Credit Card- Including Apple Card

That should really tell you everything you need to know. I don't think there's any situation where you would want to willingly waive your rights. Why would you ever do that? So you just want to opt-out even if you never intend to Sue them. Obviously, why would you give up the option?

And really I would say that I think these types of binding arbitration clauses should really be made illegal. It's really just people being taken advantage of because they don't read the fine print. And Yeah I know you could say Oh well that's their fault for not reading the fine print. But there are so many companies they just put in so much fluff they really discourage you from reading it. They make these insanely long end-user license agreements that no one in their right mind is going to read.

And if you do actually end up reading a lot of these agreements that you agree to every single day you will find these binding arbitration agreements in pretty much everything. And honestly, you can't even blame businesses for doing it. It just makes business sense to put this in because really it's the option of the business whether if they put it in they can have the advantage.

If they get litigated or if they leave it out then the customer has the advantage. Why would they not put it in if they're going to get away with it? Because if the customer really gets screwed by the company typically you can find a lawyer who might do the case on contingency meaning they get paid the percentage of the winnings. So the customer who's suing doesn't have to pay out of pocket. But the company is going to have to pay out of pocket regardless in any case. And a lot of times with court these jury trials might award ridiculous amounts against the company.

So it's beneficial to have arbitration where that's less likely. And if the customer has to Sue and put up their own money in arbitration then that's going to discourage them from suing the first place. And because arbitration is a lot faster and courts are so much longer drawn out that it's a lot more expensive for the company who has to pay out of pocket for the lawyers. Again compared to the consumer who might be doing it on contingency. Well, they don't have to pay anything no matter how long the case is.

How do you opt out?

Well, this is going to really depend on your credit card agreement they're all going to have in there how to actually opt-out for the Apple card. They do mention in the agreement there are a few ways you can do it including by phone calling them. You can use the Messages app which is probably the easiest way or using snail mail just mailing in a letter. And it says you need to include information like your name email address mailing address etc.

But really the easiest way that I did was through message.

You just go into the Apple card settings click the message for a support thing and then literally just say that you want to opt-out of the arbitration provision. And then in my case, they did it so quickly. They said Okay Yep. We'll get your permission to do that. Yes. And then they opted out. And then that was it. So Super easy. Super simple.

Obviously, I have no intention of suing Apple or Golden Sacks. He's doing the credit card back end but it's good to at least opt-out. So then you have the option in case something bad happens. So that's really all I have to say about that. I'm looking forward to hearing from you down in the comments.

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