So, I filed an MTC Arbitration after being sued by Velocity Investments for a Lending Club debt that they claim is now $13,500.
They agreed to conditional consent to arbitration. Here is the wording of the conditional consent:
"Comes now Plaintiff, by and through counsel, and hereby notifies the Court 0f its conditional consent to an Order dismissing the instant proceeding and referring it to arbitration, so long as Defendant complies With all relevant provisions of the contract, including but not limited t0 Paragraph 17(c) (initiation of arbitration) and 17(d) (payment 0f costs and fees), and so long as Defendant is required to initiate arbitration in timely manner."
Here are the paragraphs they are referring to:
"c. The party initiating arbitration shall d0 so with the American Arbitration Association (the "AAA") 0r JAMS. The arbitration shall be conducted according t0, and the location 0f the arbitration shall be determined in accordance with, the rules and policies 0f the administrator selected, except t0 the extent the rules conflict with this Arbitration Provision 0r any countervailing law. In the case 0f conflict between the rules and policies 0f the administrator and this Arbitration Provision, this Arbitration Provision shall control, subject t0 countervailing law, unless all parties t0 the arbitration consent t0 have the rules and policies 0f the administrator apply.
d. If we (0r LendingClub) elect arbitration, we (0r LendingClub, as the case may be) shall pay all the administrator's filing costs and administrative fees (other than hearing fees). If you elect arbitration, filing costs and administrative fees (other than hearing fees) shall be paid in accordance with the rules 0f the administrator selected, 0r in accordance with countervailing law if contrary t0 the administrator's rules. We (0r LendingClub, as the case may be) shall pay the administrator's hearing fees for one full day 0f arbitration hearings. Fees for hearings that exceed one day will be paid by the party requesting the hearing, unless the administrator's rules 0r applicable law require otherwise, 0r you request that we (0r LendingClub) pay them and we agree (0r LendingClub agrees) t0 d0 so. Each party shall bear the expense 0f its own attorneys' fees, except as otherwise provided by law. If statute gives you the right t0 recover any 0f these fees, these statutory rights shall apply in the arbitration notwithstanding anything t0 the contrary herein."
I'm a little confused because I thought that they wouldn't want to go into arbitration. What's their strategy here? Obviously, I need to file my arbitration case now. But is there something I'm missing? I'm assuming they are referring to the paragraph d on payment. Do I need to be worried about that? I thought consumer fees were capped with JAMS and AAA.