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Annie Baxter
St. Paul, Minn.

Class-action suit filed against consumer arbitration group

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Three people have filed class-action lawsuits against the National Arbitration Forum, based in the Twin Cities.

The National Arbitration Forum, or NAF, is one of the nation's largest arbitration service providers. It presents itself as a neutral arbiter between companies and the consumers who owe them money.

Earlier this month, the Minnesota Attorney General's office sued the NAF, saying it's not a neutral body because of financial ties to the collection industry.

The NAF did not admit wrongdoing, but it settled the suit and agreed immediately to cease consumer arbitrations, citing mounting legal costs.

The class-action suits filed in U.S. District Court in Minneapolis also address the company's neutrality. The plaintiffs say they suffered damages due to the company's alleged impartiality. The suits also name several credit card companies and banks.

An NAF spokesman said the company does not comment on pending litigation.