Virginia Cicle had a credit card with Chase Bank USA. The original agreement had

Question

Virginia Cicle had a credit card with Chase Bank USA. The original agreement had a binding arbitration clause and class action waiver. In 2005, Chase sent a new agreement, and Cicle was given the choice of closing her account, but she used the card again, which meant she agreed to the agreement. A dispute arose, and Cicle filed a class action suit. Chase sought to enforce the arbitration clause. The clause required her to pay for filing an arbitration action, but Chase would reimburse her for up to $500. She had to pay her own attorney’s fees. Cicle further alleged the agreement was unconscionable because Chase had superior bargaining power and the agreement was in fine print. Was the agreement unconscionable? Explain.

Explanation / Answer

Here in this case as the chase bank has issued the changes in agreements to cicle, and knowingly after sending the agreement cicle used the card which indicates her agreeing to abide for the changes in agreement policy made by bank. In this instant the cicle couldnot sue arbitration against the bank and also cannot claim the arbitration charges as the bank has done its job of informing about changes in policy. However for entering into arbitration the bank in return can claim charges from the cicle on head of her negliglbe action which ultimate would reflect on reputation of bank.

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