On January 10, 2012, the Supreme Court announced its decision in CompuCredit Corp. v. Greenwood. This case involved the Credit Repair Organizations Act, or CROA, which requires credit repair organizations to provide consumers with a disclosure informing them that they have a right to sue credit repair organizations that violate the Act. At issue was whether a credit repair company that is being sued by former customers under CROA can force those customers to arbitrate their claims based on an arbitration provision contained in the customers’ credit card applications.
In an opinion delivered by Justice Scalia, the Court held by a vote of 8-1 that CROA does not address the arbitrability of claims made under thereunder, and the Federal Arbitration Act therefore requires the arbitration agreement in this case to be enforced according to its terms. Justice Sotomayor filed a concurring opinion, joined by Justice Kagan. Justice Ginsburg filed a dissenting opinion.
To discuss the case, we have Christopher Drahozal, a professor at the University of Kansas School of Law.