Banks turn to arbitration agreements

Legal beat

NEW YORK - Many banks are implementing class action arbitration agreements to reduce the risks of lawsuits brought by one or more plaintiffs on behalf of a large group who have a common interest, according to banking lawyers.

Banks and other consumer financial services providers are now among the increasing number of companies that choose arbitration, ahead of litigation, as a medium to resolve disputes in consumer class actions.

Arbitration agreements help banks "save substantial legal fees a