New SCOTUScast: CompuCredit v. Greenwood
by SCOTUScaster
Posted January 24, 2012, 10:38 AM
On January 10th, the Supreme Court announced its decision in CompuCredit Corp. v. Greenwood. The case regarded the Credit Repair Organizations Act (CROA), which requires credit repair organizations to disclose to consumers that they have a right to sue credit repair organizations that violate the Act. At issue was whether a credit repair company being sued by former customers under CROA could force those customers to arbitrate their claims based on an arbitration provision contained in the customers’ credit card applications.
In an opinion written by Justice Scalia, the Court held 8-1 that CROA does not address the arbitrability of claims made under it, and that the Federal Arbitration Act therefore requires the arbitration agreement to be enforced according to its terms. Justice Sotomayor filed a concurring opinion, joined by Justice Kagan. Justice Ginsburg filed a dissenting opinion.
We have Christopher Drahozal, a professor at the University of Kansas School of Law, to discuss the case.