The Minnesota Attorney General filed suit today against the National Arbitration Forum alleging multiple counts of consumer fraud in violation of Minnesota law. The suit stems from an allegation that both the NAF and many of the collection firms that regularly use its services are owned, at least in part, by the same company. Business Week has a short news item about the law suit here.
According to Indisputably’s sources:
The Complaint alleges, in paragraph 3, that “The Forum concealed its affiliations with the collections industry through extensive representations, material omissions, and layers of complex and opaque corporate structure.” Thus, asserts the Minnesota AG, NAF’s assurances of neutrality to consumers are fraudulent
This is big news and don’t be surprised if other state attorneys general files a similar lawsuits.
Hat tip – JS
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1 National Arbitration Forum Sued by the Minnesota Attorney General « Disputing // Jul 16, 2009 at 6:51 am
[...] the ADR Prof Blog, we learned that the Minnesota Attorney General, Lori Swanson, has filed a lawsuit against the [...]
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