How and why you should reject the arbitration provision on your Apple Card

There’s something you need to do before you make your first Apple Card purchase: reject its arbitration provision.

Ed Hardy for Cult of Mac:

Invitations to get an Apple Card are trickling out, but even before you make the first purchase with your shiny new credit card you should reject its arbitration provision.

If you don’t, you give up the right to benefit from any class-action lawsuits brought against Goldman Sachs, the company backing this card.

It’s slightly gloomy to plan for disaster, but it’s necessary. And if anything ever goes wrong in your dealings with this financial institution, it’s better to have the option to take them to court. Or let others take Goldman Sachs to court on your behalf, via a class action.

MacDailyNews Note: The Apple Card Customer Agreement explains the process in all-caps:

YOU MAY REJECT THIS ARBITRATION PROVISION BY CONTACTING US USING MESSAGES, CALLING US, OR WRITING TO US, AND STATING THE FOLLOWING: (I) YOUR NAME; (II) THE EMAIL ADDRESS ASSOCIATED WITH YOUR ACCOUNT; (III) THE ADDRESS ASSOCIATED WITH YOUR ACCOUNT; AND (IV) THAT YOU ARE EXERCISING YOUR RIGHT TO REJECT THIS ARBITRATION PROVISION (A “REJECTION NOTICE”). YOUR REJECTION NOTICE MUST BE RECEIVED WITHIN 90 DAYS AFTER THE OPENING OF YOUR ACCOUNT. IF YOUR REJECTION NOTICE COMPLIES WITH THESE REQUIREMENTS, THIS ARBITRATION PROVISION WILL NOT APPLY TO YOU, EXCEPT FOR ANY CLAIMS SUBJECT TO PENDING LITIGATION OR ARBITRATION AT THE TIME YOU SEND YOUR REJECTION NOTICE. ANY REJECTION NOTICE THAT COMPLIES WITH THIS PROVISION WILL APPLY TO BOTH US AND APPLE. REJECTION OF THE ARBITRATION PROVISION WILL NOT AFFECT YOUR OTHER RIGHTS OR RESPONSIBILITIES UNDER THIS ARBITRATION PROVISION OR THIS AGREEMENT.

Apple Card holders can contact the company via:

• Apple Messages

• Phone toll-free: 877-255-5923

• Snail mail to:
Lockbox 6112
P.O. Box 7247
Philadelphia, PA 19170-6112

7 Comments

  1. And before you take this advice…
    I just attended a speaking engagement with a Super Court Judge in Los Angeles. She explained Arbitration and why it is the common first step for conflict resolution. It boils down to the pace and backlog of the court system. The average court case can last more than 10 years, and cost you 10x times as much to see it through because of the more numerous formal procedures required to process a case in court. Bottom line is that most of the time, Arbitration will achieve a result both faster and with less cost. IF you really have a case, with evidence of wrong doing, and evidence of damages, an Arbitrator is just a likely to give you a win as much as a court judge. AND… regardless of a winning judgement, it is still left to you to collect any award granted. More time, more attorneys. In other words, you have to get royally screwed to want to begin any legal proceeding.

    1. That may be true, Spark. But I would prefer to have the option of accepting arbitration in a particular circumstance rather than being forced into it. He average citizen is legally emasculated in nearly every contract that they sign. Corporations have identified and exploited every means possible to bypass consumer protection statutes in their favor.

      For instance, did you explore the location at which the default binding arbitration action will occur? In every such agreement that I have read, the corporation defines where the arbitration action will occur, and it is never convenient for the average citizen.

      I hate to have become so cynical, but decades of experience has left me with serious doubts that arbitration generally leads to justice for the average citizen. I prefer to have the option to fight in the manner that seems best to me.

    2. “you have to get royally screwed to want to begin any legal proceeding”

      But if everyone takes that view, we have no more class action lawsuits forcing corporations to REALLY think about the potential cost (to them) of cutting corners.
      Class actions sweep in a lot of people (increasing damages) who would never bother taking something to arbitration.
      Class action lawsuits are the reason behind a LOT of safety/quality improvements over the past few decades. If everyone agrees to arbitration, one of the most powerful incentives to continue those improvements goes away.

  2. Read the agreement and you will see why the average citizen gets screwed every time. I just read all 15 pages, and this agreement is actually not too bad compared with some that I have encountered in the past. But it still represents typical corporate disrespect for consumers.

    This is why you should reject the arbitration provision:

    “ACKNOWLEDGMENT OF ARBITRATION. Credit is being extended to you and you are being provided access to and use of your Account on the basis of the inclusion of the following arbitration provision. By accepting this Agreement or using your Account, unless you reject arbitration as provided below, you acknowledge that YOU ARE GIVING UP THE RIGHT TO LITIGATE CLAIMS (AS DEFINED BELOW) AND THE RIGHT TO INITIATE OR PARTICIPATE IN A CLASS ACTION. You hereby knowingly and voluntarily WAIVE THE RIGHT TO BE HEARD IN COURT OR HAVE A JURY TRIAL on all Claims subject to this Agreement.”

    How is this for a one-sided provision? You will find this in nearly every consumer contract….

    “CHANGES TO THIS AGREEMENT. Subject to applicable law, we may change any term of this Agreement, or add new provisions, at any time in our sole discretion.”

    In addition:
    “YOUR CREDIT LIMIT. We may increase or decrease your credit limit at any time, subject to applicable law. We may authorize Transactions that, together with previously authorized Transactions, interest and other amounts billed to you, cause your outstanding balance to exceed your credit limit.” …So much for the definition of ‘limit’…

    Some groups of people apparently deserve extra “protection”:
    “Statement of Military APR Federal law provides important protections to members of the Armed Forces and their dependents relating to extensions of consumer credit. In general, the cost of consumer credit to a member of the Armed Forces and his or her dependent may not exceed an annual percentage rate of 36%. This rate must include, as applicable to the credit transaction or account: The costs associated with credit insurance premiums; fees for ancillary products sold in connection with the credit transaction; any application fee charged (other than certain application fees for specific credit transactions or accounts); and any participation fee charged (other than certain participation fees for a credit card account).

    It is nice that our Federal government is looking out for military members. But is capping at 36% APR really that much of a protection?? Furthermore, why not provide this protection for every citizen if such protection is deemed sufficiently necessary to write a such a law in the first place?

    FINALLY, THE INTEREST RATE: 12.99 to 23.99%.

    How is it possible to legally charge in excess of 20% when bank accounts pay <1% and long term interest rates are near historic lows? Apple should be ashamed for agreeing to these consumer-unfriendly terms. We also need government representatives who believe in protecting consumers from corporate predation.

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