Andrews Federal CU Arbitration Letter

aaflygirl
aaflygirl   |     |   47 posts since 2016

Letter came in the mail today from Andrews asking if I wanted to "opt out" concerning arbitration. Any thoughts from anyone on this?



Answers
aaflygirl
aaflygirl   |     |   47 posts since 2016
After reading this " the CFPB study found that the vast majority of credit unions do not use forced arbitration" I think that I should opt out of the forced arbitration at Andrews. Has anyone else received this letter in the past week?
enelrad1123
enelrad1123   |     |   55 posts since 2017
Yes, I received the letter.
highrate
highrate   |     |   37 posts since 2016
Yes, I received it. I was planning on opting out. Is there any downside of opting out? I have only that 7 year cd there that pays 3percent. It doesn't mature till 2023
111
111   |     |   85 posts since 2019
Received it today - haven't decided about opting out or not. I don't recall receiving a letter like this from any other CU, at least recently. Hope this isn't because they plan on doing something sneaky a la GTE. It wouldn't be the same since Andrews has no add-on CDs, but I suppose they could mess with the early withdrawal penalties they've made in Terms & Conditions docs (6 months on mine that also expires in 2023). Who knows?
blazer9
blazer9   |     |   15 posts since 2019
Said better than I.
Thanks for reading my mind with a more clear thought.
blazer9
blazer9   |     |   15 posts since 2019
I got the letter too.
I understand it to be saying that if you don't agree to arbitration that you'll pay for lawyer fees yourself and that they won't allow any multi-party ( two people +) litigation. You'll stand alone.
me1004
me1004   |     |   885 posts since 2010
I got that over the weekend, and I mailed in the opt out letter this past Monday. I will always opt out of mandatory arbitration, it is always bad for the customer, favors the business.

I will also add, I was offended by Andrews presentation of that letter, and what and how it explained it. That was the most manipulative letter I have every seen about mandatory arbitration, they tried to make it sound like they were giving me a gift, a special benefit for me, doing me a favor! The language and skewing of the facts was shocking to me. When I see something presented as that was, it sends up red flags about doing any business with them -- because I can't expect honesty from anyone manipulating like that letter.

No, there is no downside to opting out. And depending on the case, you still might be able to make them pay your lawyer fees, although probably only if you prevail. But if you don't prevail, you still might have no attorney fees -- many such cases are taken by attorneys on the basis that there will be no fee unless you win, and the fee comes from the winnings. If you go to arbitration, the lawyer will definitely charge you by the hour. But you can still go to arbitration instead of court if both parties agree. And the CU will agree, it is to their benefit -- that is why they are pushing this mandatory arbitration.

Arbitration significantly benefits the business -- that's why businesses try to make it mandatory. The arbitration places know that they must cater to the business, if they want any more business from it. It is the business that brings them all the cases, not we the individual, as we only get to select an arbitration company listed in the agreement. Those arbitrators were selected by the financial institution and can be dropped from the choices (and sometimes are, and I have seen that done). Its a built-in conflict of interest when you go to arbitration. You can't have a jury trial in arbitration.

Even if you win at arbitration, you will get a pittance of an award compared to what you would get in court -- because again, the arbitration place knows it must do that or the financial institution will not bring it any more business.
highrate
highrate   |     |   37 posts since 2016
Thank you , me, for your response. Your response makes sense to me and I agree it is a self serving letter. I will go ahead and send them a note opting out tonight.
cdqueen
cdqueen   |     |   42 posts since 2016
Thank you for timely post perspectivizing Andrews odd letter which I also just received. Thanks to me1004 exposing the underlying motivation, I've executed an opt out letter soon to mail, and also on another series of contracts I assented to this a.m. regarding a separate matter. Love the sense and sensibility you DA posters contribute to nuanced conduct within the financial universe. Together we raise the bar. More cents and reduced risk for all.
Ratesaver
Ratesaver   |     |   47 posts since 2013
I guess I will ad my name to the list of growing concern as I also received it …. Not sure what I will do as I just have a cd their so I seen your concern as I will look it over more and make a decision I have until Jan. 20th I think..
me1004
me1004   |     |   885 posts since 2010
Well, the concern is only if something wrong/bad were to happen – presumably something you would not expect or you would never have done business with them. Would you want the option to go to court, or would you want to be stuck in arbitration decidedly biased in favor of the CU, and even if you prevail, maybe get an award much, much lower than you would in court.

And mind you, this concern is not about this CU only, it is all companies trying to impose arbitration. Always opt out. You never want to automatically give up your legal rights. You can always choose arbitration when an issue comes up if you want to, don't worry, the company will always agree to that, they will always prefer that forum to a court.
highrate
highrate   |     |   37 posts since 2016
I sent them a message to opt out via their website via secure messaging. They got back to me and said they would accept it by secure messaging and I needed to send in a signed, dated statement
me1004
me1004   |     |   885 posts since 2010
Yes, that procedure that you must mail it in is designed to discourage people from bothering to do so. It is a common tactic for companies that want to impose mandatory arbitration.

Again, this is not limited to this CU. A lot of companies do it, I even had a dentist try to do it to me (I crossed it out and said no, I would not sign to that). Watch your credit cards, they are doing it. If its a business, they likely are trying to do it. This has been going on for decades, and the politicians have done almost nothing to curtail it other than make for this opt out possibility. What shocked me about Andrews was what they had to say int heir letter about it, that was the most devious Ive ever seen about this.
blazer9
blazer9   |     |   15 posts since 2019
Here is a sample opt-out letter of reply to Andrews.

https://www.roselawgroup.com/opt-arbitration-provision/
diamondx
diamondx   |     |   145 posts since 2011
I misplaced my letter and asked for them to send me another via their online secure messaging. Waiting for their reply.
vman
vman   |     |   5 posts since 2018
I got this letter and was shocked. It can only be bad, and furthermore, I do not recommend anyone dealing with Andrews because of this letter. It's shady. stay away from them.


The financial institution, product, and APY (Annual Percentage Yield) data displayed on this website is gathered from various sources and may not reflect all of the offers available in your region. Although we strive to provide the most accurate data possible, we cannot guarantee its accuracy. The content displayed is for general information purposes only; always verify account details and availability with the financial institution before opening an account. Contact [email protected] to report inaccurate info or to request offers be included in this website. We are not affiliated with the financial institutions included in this website.