How Chase Cardholders Can Opt out of New Binding Arbitration
This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.
Nearly 10 years after Chase dropped arbitration clauses from its credit cards as part of a legal settlement, the largest US credit card issuer has informed cardholders that it will be adding back a binding arbitration provision effective August 10, 2019.
Binding arbitration essentially prevents customers from taking Chase to court to settle disputes. Instead, their cases are heard by a private arbitrator, often paid for by Chase. Here’s what the fine print of Chase’s announcement say about arbitration:
“With arbitration, you cannot go to court, have a jury trial or initiate or participate in a class action for your dispute(s) with us. In arbitration, disputes are resolved by an arbitrator, not a judge or jury, and procedures are simpler and more limited than rules applicable in court.”
While this is undeniably a negative development for Chase customers, you do have the ability to opt out. Those covered by the Military Lending Act will be automatically opted out of the arbitration agreement, while anyone else wishing to opt out can do so by mailing a letter to the following address: P.O. Box 15298, Wilmington, DE 19850-5298. These letters must be received by August 9, 2019, in order to be effective, and opt-out notices sent to any other address, by phone or by email will not be recognized.
The letter itself is fairly simple, and needs to include a written note stating that you reject the agreement to arbitrate and must include your name, account number, address and personal signature. If you have multiple credit accounts with Chase, be sure to include all your account numbers. Military Money Manual even published a template letter you can use to expedite the process.
“Binding arbitration” sounds like a lot of complex legal language, and the fact that this notice was delivered in a document full of fine print sure doesn’t help. At the end of the day, Chase is informing you that unless you opt-out by August 9, you will lose your right to sue Chase in the event that they mistreat you. Chase has paid hundreds of millions of dollars in the last decade to settle class action lawsuits for everything from raising ‘fixed’ interest rates without notifying customers to improperly reporting accounts that were discharged during bankrupts proceedings. Even if you’re happy with your Chase credit cards and Ultimate Rewards points, there’s no reason to give up this legal protection when it’s so easy to save.
For the latest travel news, deals and points and miles tips please subscribe to The Points Guy daily email newsletter.
Welcome to The Points Guy!
Earn 90,000 bonus miles after you spend $3,000 in purchases within the first three months of card membership. Plus, earn a $200 statement credit after your first Delta purchase within the first three months. Offer ends 7/28/21.
With Status Boost™, earn 10,000 Medallion Qualification Miles (MQMs) after you spend $25,000 in purchases on your Card in a calendar year, up to two times per year getting you closer to Medallion Status. Earn 3X Miles on Delta purchases and purchases made directly with hotels, 2X Miles at restaurants and at U.S. supermarkets and earn 1X Mile on all other eligible purchases. Terms Apply.
- Limited Time Offer: Earn 90,000 Bonus Miles after spending $3,000 in purchases on your new Card in your first 3 months and a $200 statement credit after you make a Delta purchase with your new Card within your first 3 months. Offer expires 7/28/2021.
- Limited Time Offer: Plus, get a 0% intro APR on purchases for 12 months from the date of account opening, then a variable 15.74%-24.74%. Offer expires 7/28/2021.
- Accelerate your path to Medallion Status, with Status Boost®. Plus, in 2021 you can earn even more bonus Medallion® Qualification Miles (MQMs) to help you reach Medallion Status.
- Earn 3X Miles on Delta purchases and purchases made directly with hotels.
- Earn 2X Miles at restaurants worldwide, including takeout and delivery and at U.S. supermarkets.
- Receive a Domestic Main Cabin round-trip companion certificate each year upon renewal of your Card. *Payment of the government imposed taxes and fees of no more than $75 for roundtrip domestic flights (for itineraries with up to four flight segments) is required. Baggage charges and other restrictions apply. See terms and conditions for details.
- Enjoy your first checked bag free on Delta flights.
- Fee Credit for Global Entry or TSA Pre✓®.
- Enjoy an exclusive rate of $39 per person per visit to enter the Delta Sky Club® for you and up to two guests when traveling on a Delta flight.
- No Foreign Transaction Fees.
- $250 Annual Fee.
- Terms Apply.
- See Rates & Fees