Code of the District of Columbia

§ 26–1152.18. No oppressive mandatory arbitration clause.

(a) A mandatory arbitration clause in a note, lien, instrument, or ancillary lien instrument or obligation that evidences or secures a covered loan that is oppressive, unfair, unconscionable, or in substantially in derogation of the rights of borrowers shall be void.

(b) Arbitration clauses that comply with the standards adopted by the Mayor pursuant to regulation shall be presumed not to violate this section; provided, the Mayor’s standards be in accordance with the procedures of a nationally recognized arbitration forum such as the American Arbitration Association.


(May 7, 2002, D.C. Law 14-132, § 218, 49 DCR 2551.)

Emergency Legislation

For temporary (90 day) addition of section, see § 218 of Home Loan Protection Emergency Act of 2002 (D.C. Act 14-295, March 1, 2002, 49 DCR 2534).