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Chase Bank (now known as JPMorgan Chase Bank) is adding a “binding arbitration” clause into their terms and conditions for some credit cards.

You may receive a notice by mail or email. You have until 9 or 10 August 2019, depending on the card, to reject the arbitration clause. Otherwise, it automatically kicks in.

Here is a basic template letter you can send to Chase to opt out of the binding arbitration clause.

Chase Customer Service
P.O. Box 15298
Wilmington, DE 19850-5298

Your Firstname Lastname
Street Address
City, State ZIPCODE

Regarding: Rejecting Chase Binding Arbitration Agreement

To Whom It May Concern:

Please note that I REJECT the Chase Binding Arbitration Agreement effective August 11, 2019. Please confirm receipt of this rejection and annotate my account(s) appropriately.

Name: Firstname Lastname
Account Number(s): 4147-2222-3333-4444, 1234-5678-9012-2342
Billing Address: 124 Address Street, City, State ZIPCODE
Signature: (Actually sign here)

Thank you for your attention to this matter,
Firstname Lastname

Here's a Word doc version of the letter for you to print or a PDF (you will need to edit the PDF).

MLA and Chase Binding Arbitration Clause

Thankfully, it appears if you are covered by the Military Lending Act (MLA), which all military servicemembers and their spouses should be, then you are automatically opted out. Here's the quote from the Chase Military Lending Act Notice:

If you are covered by the Military Lending Act, (i) then you are not bound by the Arbitration Agreement below, and (ii) notwithstanding anything to the contrary in this agreement, to the extent required by the Military Lending Act, nothing in this agreement will be deemed a waiver of the right to legal recourse under any otherwise applicable provision of state or federal law.

Even if you are military, I think it is important to send a message to Chase that these kinds of changes are not how you treat customers fairly.

Send Chase a quick letter opting out to make it clear that they shouldn't remove our rights to a judge and jury.

Frequently Asked Questions About Chase Arbitration Agreement

What is Binding Arbitration?

Here's how Chase defines binding arbitration in their new terms and conditions:

BINDING ARBITRATION: Unless you timely reject the agreement to arbitrate, disputes with us may be resolved by binding 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.

Note that these terms and conditions will remove your right go to court, have a jury trial, or participate in class action lawsuits.

Will this close my credit card account?

No. Rejecting the Chase Arbitration agreement will not close your account. From the Chase email I received:

Can I (the customer) reject this agreement to arbitrate?

Yes. You have the right to reject this agreement to arbitrate if you notify us no later than 8/10/2019. You must do so in writing by stating that you reject this agreement to arbitrate and include your name, account number, address and personal signature. Your notice must be mailed to us at P.O. Box 15298, Wilmington, DE 19850-5298. Rejection notices sent to any other address, or sent by electronic mail or communicated orally, will not be accepted or effective.

Do I have to physically mail a letter to Chase?

Yes, they are purposely making this hard so people don't opt out. Send the letter to P.O. Box 15298, Wilmington, DE 19850-5298.

If Chase automatically opts me in for binding arbitration, can I participate in class action lawsuits?

No. Binding arbitration means you have waived your rights to a class action lawsuit. From the Chase email I received:

UNLESS YOU REJECT THIS AGREEMENT TO ARBITRATE, YOU AND WE ARE WAIVING THE RIGHT TO ASSERT OR PARTICIPATE IN A CLASS ACTION, OR ANY REPRESENTATIVE OR CONSOLIDATED PROCEEDING IN COURT OR IN ARBITRATION.

Again, you MUST opt out of this binding agreement or you CANNOT participate in class action lawsuits.

How do I opt out of the Chase Binding Arbitration agreement?

The only way to opt out of the Chase binding arbritation change is to physically mail them a letter with your name, account number(s), address, and personal signature no later than August 10, 2019.

I suggest you send this letter quickly and send it certified mail so you can get receipt when they receive it. Here's the quote from the email:

YOU CAN REJECT THE BINDING ARBITRATION AGREEMENT. YOU MUST MAIL YOUR REJECTION TO US BY 8/10/2019. PLEASE SEE THE END OF THIS NOTICE FOR INSTRUCTIONS

Please share this letter with other Chase customers so they can also opt out of the Chase binding arbitration agreement.

Form Letter to Reject Chase Arbitration Clause

13 thoughts on “Form Letter to Reject Chase Arbitration Clause

  • June 15, 2019 at 17:54
    Permalink

    Let’s say I decide to open a new credit card with Chase after the arbitration rejection deadline (8/10/2019). Would I have the ability to opt out and reject the arbitration clause for the new card? Or is the binding agreement definite on any new card opened after the rejection deadline passes?

    Reply
  • June 5, 2019 at 16:11
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    Comenity Bank is also doing the same thing. I’m going to use your wonderful template to opt out of the agreement on every card I have, thank you! Here’s my question, though: I have multiple cards through Chase (and multiple through Comenity as well). Can I include all my card numbers in the same letter to the bank in question, or do I need to send a different letter for each?

    Reply
    • June 5, 2019 at 16:48
      Permalink

      You can include all the card numbers for each card holder and bank on one letter.

      Reply
    • June 11, 2019 at 18:05
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      Thanks for the letter templates.

      Reply
  • June 5, 2019 at 09:23
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    For the “Account Number(s)” section it looks like you listed card numbers and not a 9-digit Chase account number. Should I do card numbers instead of account?

    Reply
    • June 5, 2019 at 09:29
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      List the account numbers of any accounts you want to opt out of arbitration with. All my accounts with Chase that were notified of arbitration were credits cards, so I listed 16 digit numbers as examples.

      Reply
  • June 4, 2019 at 17:20
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    I’ve heard they are closing account s that don’t agree to the clause. Is this true?

    Reply
    • June 5, 2019 at 09:28
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      Just a rumor at this stage. They are automatically opting out military servicemembers so there must be a mechanism in place to track those who opt out. Nothing in the fine print says they will close the account if you opt out of arbitration.

      Reply
  • June 4, 2019 at 12:56
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    I called Chase three times about this asking if my account would be closed and got different answers from different people. One guy said if I don’t accept the new agreement I won’t have business with them any more. The next, a woman, said quickly and assuredly that this wouldn’t close my account. The third person spoke with 2 supervisors who both said this should not close the account.

    I dunno who to believe. It’s not like I have the phone calls recorded…

    Reply
    • June 5, 2019 at 10:47
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      I was informed by a Chase card services customer representative for JP Morgan Chase Bank, N.A. via a phone call to 1-800-981-8359 on June 5, 2019, that my decision to reject this agreement is my right and that choosing to reject the agreement would result in NO negative consequences regarding me or my account (including no termination of my account or change in interest rates). She confirmed this multiple times during our conversation. I have the conversation recorded after being given consent by the representative.

      Reply
  • June 4, 2019 at 08:45
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    Wonderful resource, thank you for your generous help to fellow card users!!!

    Reply
  • June 1, 2019 at 17:22
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    If you have a joint account with your spouse do you each have to send a letter or send one signed by
    both parties?

    Reply
    • June 1, 2019 at 19:07
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      Only the primary account holder, not the authorized users.

      Reply

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