The U.S. Supreme Court has handed credit counseling agencies a major victory. by an 8-1 vote, on January 10, 2012, the Court ruled that lawsuits brought under the federal Credit Repair Organizations Act (“CROA”) can be subject to mandatory arbitration.

This is a profoundly significant decision with far-reaching positive implications for counseling agencies and others in the consumer financial services sector that in recent years have been the target of aggressive plaintiffs' lawyers. Providers of consumer financial services can use this pro-arbitration ruling to help mitigate the threat of consumer class action lawsuits by using carefully drafted contract language….    

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Supreme Court Upholds Use Of Arbitration In CROA Lawsuits – Litigation, Mediation & Arbitration – United States