We got an email from our financial advisor with an attachment saying that we needed to update our information. As I was looking it over I noticed that there was an arbitration clause. By signing the contract we would forfeit our right to sue the company and disputes would be handled by arbitration through FINRA.
A few weeks ago, I would have signed it (we signed the previous contract with the clause) and not have thought twice about it, but I have heard several interviews with Susan Saladoff about her movie "Hot Coffee". Arbitration clauses are one of the tactics companies use to strip consumers of their right to sue the company.
I replied to my financial advisor that I wasn't willing to sign as long as that contract was there. He forwarded a reply to me from the main office that arbitration went through FINRA. I went to their website and googled them, but couldn't get an idea if this was respectable or fair or a scam.
The main office also said that financial lawyers cost up to $350 per hour and won't take a case without a retainer of $10,000-15,000. The arbitration clause compounded with the scare tactics make me trust these guys about as far as I can spit a rat.
I'd love to move my money to a company that doesn't have the arbitration clause. Do they exist?
Thanks for any info.