Author(s): Ali Falah Alhusainan
While the enforceability of arbitration clauses in consumer contracts, notably credit card contracts, has been well developed in some jurisdictions like the United States, the issue has not yet arisen in Kuwait, largely because the development of the credit card sector is relatively new, but, more importantly, because the arbitration system has generally been limited in practice to specific contexts that have not yet included consumer disputes in relation to credit cards. This article examines both the likelihood that Kuwaiti financial institutions will adopt pre-dispute mandatory arbitration clauses in credit card agreements in the near future, and the likelihood that those clauses, often significantly unfair to consumers, will be enforced under current Kuwaiti laws. The article also proposes amendments to relevant Kuwaiti legislation to mitigate the harshness of the enforcement of these clauses in the consumer credit card context and to provide greater balance between the interests of card issuers and cardholders.