Jump to content

National Arbitration Forum question


Guest dfwyogi
 Share

Recommended Posts

Guest dfwyogi

I am new to this forum, and hope that someone can help me.

I received a letter from the National Arbitration Forum stating that a claim was being filed against me from Wolpoff & Abramson representing MBNA. I did my homework on this site and sent them a refusal to arbitrate response and also sent a debt validation to W & A.

A few days ago I received another letter from the NAF. It said that they had received my response and were assigning the claim to a case coordinator for abitration; essentially they have ignored my response.

Any ideas what I should do at this point? Maybe send a debt validation to both parties? Any help will be appreciated.

Link to comment
Share on other sites

Hello there dfwyogi,

Does dfw stand for Dallas/Ft. Worth?

GrimRepo is correct.

The problem with arbitration is that it has been argued the banks and the arbitration forum have a vested interest in helping each other. Arbitrations are done in bulk and often end in the same results (bank gets the award). It can be argued that arbitration is unfair, and in many cases it can be shown that the arbitration forum and the arbitrators are not following their own Code of Procedure. The NAF is 90% funded by the banking industry and is currently and aggressively marketing to many, many banks who do not normally use their "services". Again, the vast majority of the time arbitration awards are issued in favor of the banks.

The bank will probably receive an arbitration award... but an arbitration award is Toilet Paper until its taken in front of a judge for CONFIRMATION. If confirmed by the court in favor of the bank, it becomes a judgment, and the creditor may then pursue collection on that judgment to whatever level is permissible under your state law. If you are notified that W&A or whomever is going to court to seek confirmation of the award, its important that you do not allow them to walk into court unopposed. Automatic wins (summary judgements) are what these lazy lawyers live for. They do not like educated opponents... they have to really earn their keep then. The argument before the judge will not be whether the debt is valid, but whether the arbitration process and resulting award was appropriate... whether the National Arbitration Forum ever had the jurisdiction to hear the dispute in the first place.

One major consideration... was your account was opened prior to April 9, 1999? If so, there was probably no arbitration language in the agreement. That's a very strong defensive argument for dismissal. There is also some debate as to the legal effect of including such language in their agreements based on Delaware law and its jurisdictional force outside that state.

It may be wise to prepare for a legal battle somewhere down the road. Usually bank's representatives will pursue confirmation within the first year from the date of the award issuance. Beyond that time-frame it is less likely they will go for confimation. But be aware... there are NO TIME LIMITS for confirmation. There are, however, statutes of limitations for collections. See the link shown above for your paticular state.

There's a lot of good information on this site. Also study the NAF's own Codes here: http://www.arb-forum.com/ to determine if procedure was followed correctly. Obviously document EVERYTHING you do in this regard and ONLY correspond using CMRRR. Personally, and realizing an award in favor of the bank is probably imminent, I would begin preparing my arguments (in the event of a court confirmation) based on the fact that they have no jurisdiction over me to decide the dispute.

Best of Good Fortune!

The Hypnotist

Link to comment
Share on other sites

For one minute do not give up on this abritration stuff!! I have had 5 arbitrations and had 3 of them stopped at the NAF level because the planitff(creditor) had not properly validated the debt and proceeded with arbitration. 2 of the others got Arbitration award. I had one that I appealed and it went to a retired Judge herein SC and he decided in favor of the award. Another award went to an Attorney here in SC and is past the SOL. I sent them a letter and have not heard for them again. Of these two, the statue of limitions has expired. they must be comfirmed in one year.

The Federal Abritration Act governs all arbitration. Study it also. Don't give in, just pay along the paper game and learn.

Link to comment
Share on other sites

The problem with just sending a refusal letter is that it does NOT follow the proper procedure to respond in the first place. You HAVE to play their game their way and you MUST follow THEIR procedures if you want ANY hope of getting out from under.

The procedures to answer an arbitration is very close to filing a proper Answer to any lawsuit. A mere letter won't work for an Answer to a Complaint and it won't work in Arbitration either.

Unfortunately, 98% of all arbitration cases are found AGAINST the consumer - its rigged that way. There IS case law, which includes MBNA (they lost), that says forced arbitration is unfair and unconscienable (sp?).

We here really need to put our heads together to forumlate a PROPER response to an arbitration notice - following the NAF procedures, it might help people more than the letter we have now.

Link to comment
Share on other sites

For one minute do not give up on this abritration stuff!! I have had 5 arbitrations and had 3 of them stopped at the NAF level because the planitff(creditor) had not properly validated the debt and proceeded with arbitration. 2 of the others got Arbitration award. I had one that I appealed and it went to a retired Judge herein SC and he decided in favor of the award. Another award went to an Attorney here in SC and is past the SOL. I sent them a letter and have not heard for them again. Of these two, the statue of limitions has expired. they must be comfirmed in one year.

The Federal Abritration Act governs all arbitration. Study it also. Don't give in, just pay along the paper game and learn.

Absolutely... fight the arbitration first. But be prepared for the long haul.

Link to comment
Share on other sites

  • 2 weeks later...

I am very intrugued to hear that you have been successful in arbitrations. I currently have a NAF arb going with Mann Bracken (representing Chase). My first response was to refuse the arb, but required continued notification of all further actions. At the same time I DVed MB. The next I heard was a lifting of an automatic stay related to Hurricane Katrina, which stay I never knew existed. Possibly they failed to follow their own procedure there.

MB of course failed to validate, so I informed the NAF that they are no longer legally permitted to collect the alleged debt and demanded Involuntary Dismissal under NAF Rule 41A2 (the Claim is not supported by law).

For a while I hear nothing, then last week I get a notice saying an arbitrator has been selected, a retired judge in Montgomery, AL, about 100 miles south of me.

My reposen was to remind the NAF that arbitration has been refused and that MB has no legal authority to collect, demanding notice of any communication by MB with the NAF to that effect, and then finally striking the arbitrator under NAF Rule 21C (essentially a peremptory challenge). Future arbitrators can be challenged also, but it has to be for cause.

Basically, I'm just stringing them along, trying to get past February, when I will have less than a year to SOL. But if what you are saying is true, then maybe I have a chance here to finally tell MB where to get off.

Link to comment
Share on other sites

Did you refuse arbitration for lack of jurisdiction? If you moved for dismissal due to lack of jurisdiction, there is no reason to communicate further. By doing so, you somewhat agree and admit to jurisdiction. All other arguments are less than effective. They don't follow their own procedure, you've already experienced this. As previously stated, be prepared for an award confirmation hearing in a REAL court of law... even though it may never happen.

Link to comment
Share on other sites

One thing that worked for me was, when I was notified by the MB that they were collecting the debt and would take me to Arbitration, I requested validation by rmrrr. Only 2 weeks went by and the next letter was fron the NAF.The 30 days had not even expired.

I put MB and the NAF on notice that MB had not validated the debt and proved it to the NAF. MB Just went straight into Arbitration.

I let MB know that if an Award was granted and I suffered any adverse damages, I would be recovering from them(MB).

The NAF through this one out because I could prove it and maybe the NAF would have been in volation of there own regulations and would have been liable also!

Link to comment
Share on other sites

I refused arb on various grounds: lack of enforceability, no arb clause in the original contract, established NAF bias, etc. In my refusal however, I made it clear that I wanted to remain notified of all further activity in the claim as per normal procedure. In every response I make I refer back to the refusal.

The NAF should at this point be tied up in its own procedure: I have requested Involuntary Dismissal, which requires an arbitrator's ruling, but at the same time have stricken the only arbitrator they have assigned. 8-) This will also have to be the first thing the arbitrator considers when one is finally appointed. But I plan to challenge all further assigned arbitrators (if they can even find one even remotely close to my jurisdiction) on the basis of demonstrable bias, which I don't think will be too hard to do. And of course, if they do not honor this process, this will simply be evidence of the NAF's own bias. This I will present before a court if it comes to that.

Judging by nusteem's comments, our cases look to be fairly similar on the DV issue (in my case the NAF was copied on the original DV), so hopefully the dismissal will be forthcoming. Amnd of that is the case, then MB has screwed themselves, because their own claim states that per the alleged arbitration clause they can't pursue legal remedies if they use arbitration.

Link to comment
Share on other sites

  • 1 month later...

nusteem

Im sure encouraged by your results with NAF. I just had a friend who spent 6 months challenging the process with DV and refusal to participate. The NAF told WA to validate by 11/28. Nothing since. She is hoping thats the end of it.

My question: My NAF letter has wrong MBNA account #. Also the amount is $7K less than the last harassment letter WA sent me in December.

Is this any kind of defense? They may not truly have the right account, even though it has our name on it.

Link to comment
Share on other sites

You just answer your own question! If they have the wrong account # and amount, that is your defense. Challange that! Wheather you owe it or not. Make them prove it on real paper in black and white ink with real accounting from the original bank. Request an evidence hearing.

Make them work for it. Take the lead!!

:p

Link to comment
Share on other sites

Guest
This topic is now closed to further replies.
 Share

×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.. For more information, please see our Privacy Policy and Terms of Use.