The Apple Card is in the midst of an initial rollout to users. But despite its unique benefits, the Apple Card does come with some of the downsides.
One of those downsides is the Apple Card’s forced arbitration clause. But, luckily, you can actually opt out of it with the right know-how.
What Is Forced Arbitration?
A forced arbitration clause is essentially a provision in a credit card’s customer agreement that requires cardholders to forfeit their right to file a lawsuit against the lender.
In the case of the Apple Card, users are giving up the right to sue Apple or Goldman Sachs — whether individually or as part of a class.
Instead, if a cardholder has a dispute against Apple or Goldman Sachs, they’ll need to accept binding arbitration to resolve it.
While some proponents of binding arbitration defend it as a quicker and less expensive alternative to lawsuits, it most often tends to favor corporations over consumers. In other words, the odds of winning a dispute for the customer are pretty low.
Again, this is pretty standard among credit cards. And just because it’s included in the Apple Card customer agreement doesn’t mean that Apple or Goldman Sachs are up to anything nefarious.
And while either firm may not even give you a reason to sue them, it’s still worth knowing what binding arbitration is.
It’s important to note that you should do your own research on binding arbitration and make an informed decision about whether or not to opt out. Don’t just take our word for it.
How to Opt out
You’ll need to decide whether or not to opt out of the arbitration clause within 90 days of account opening.
If or when you do decide to, it’s just a matter of contacting Apple and letting them know that you want to opt out of the arbitration clause.
As ARS Technica’s Lee Hutchinson notes, the Apple Card’s arbitration clause is actually fairly easy to opt out of. Here’s how.
The easiest way to contact Apple and opt out is to just use the built-in chat function in the Wallet app.
- Just navigate to your Apple Card in Wallet and tap on Message.
- You’ll be connected to a customer representative in iMessage.
- From there, just say that you’d like to opt out of the arbitration clause.
Alternatively, you can opt out by calling (877) 225-5923 or by writing a letter to Lockbox 6112, P.O. Box 7243, Philadelphia, PA, 19170.
No matter which contact method you choose, you’ll need to provide the following:
- Your name.
- The email address associated with your account.
- The physical address associated with your account.
- A verbal or written statement that you are exercising your right to reject the arbitration provision.