As part of a settlement agreement, JPMorgan Chase & Co. has become the second major credit card issuer to abandon mandatory arbitration, dealing another blow to the once-common industry practice.

JPMorgan Chase, the nation's largest issuer, said Friday that it will remove the arbitration clauses from its credit-card contracts effective during the first quarter of 2010. It follows Bank of America Corp., which said in August that it was eliminating arbitration clauses from its card and other consumer contracts.

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