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received notice of arbitration but sounds shady


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This is a pretty long story but we have never been invovled in anything like this and we could use some answers.

My husband and I purchased a computer through MBNA in 1998 and we defaulted on the loan which was originally for 2000 dollars. Long story short we had been trying to live beyond our means and paid the price. It had been turned over to NCO finacial group for collection. Anyway last week we received a letter in the mail stated that an award had been issued to NCO by the National Arbitration forum. Our problem is that they did this in the state of georgia where my husband was stationed for 2 years. However we did not do the deal in Georgia, didn't pay any $ to NCO from Georgia and never banked in Georgia. Furthermore we have lived back in California for the last year. I beleive they have all along known our current address because they sent the notification of award directly to it, but they had apparently sent all notification of this arbitration to an address that we have not lived in in two years. My question is what do we do now? I did some research and found out that the statute of limitations is up in Ca but not in Ga so I believe that that might be why they filed in georgia, but is that legal and do we have any right to vacate this judgement? Most of all we are just confused and would appriciate any help

Thanks

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First of all, read the "master refusal of arbitration thread" at the top of this forum...there's lots of good info there.

Second, this is standard practice for MBNA / NCO / National Arbitration Forum...basically what they have is a captive law firm dealing with a captive arbitrator. There "award" from NAF is not worth much...it has to be turned into a judgement before they can collect anything. If your account with MBNA went sour back before 2000, then chances are they slipped a change notice into a bill around that time saying that all future disputes would be subject to arbitration. The 9th District court has found this illegal...

Read the sticky...

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