Leadhead Posted July 31, 2007 Report Share Posted July 31, 2007 I have an account with a credit card company and there's an arbitration agreement in the terms of use. I've had this account for 5 years and never missed a payment. Two months back the OC said I failed to pay on time, which is not true and I have my banking statement showing the payment made two days before the due date as well as a printout and confirmation # from the credit card's website. They hit me with a late fee, which I disputed throught the Fair Credit Billing Act for not crediting a payment in a timely manner. I've gone round and round with these idiots and have gotten nowhere, as their CSRs simply passing the buck. Now they've reported the account as past due to all three CRAs. I've disputed this with both the OC and CRAs and am waiting to see if it comes back verified. My question is if the OC does verify and I try to nail them on an 623(, will the arbitration agreement preemp my suit in federal court? Link to comment Share on other sites More sharing options...
IHateCAs Posted July 31, 2007 Report Share Posted July 31, 2007 It depends on the language of the arbitration agreement. Link to comment Share on other sites More sharing options...
uwackme Posted July 31, 2007 Report Share Posted July 31, 2007 ABSOLUTELY NOT.Any arbitration clause would only be allowed to cover aspects of the CONTRACT.You cannot sign away the OC's responsibility to not break the law.The FCRA and FCBA violations would be acts of the OC breaking the LAW. Any clause in a contract allowing that would be found by all judges to be ABSURD and stricken post haste.Thier requirements to obey the law in their actions are not something that can be subject to any clause in any contract.... other than your settlement agreement when they pay you Link to comment Share on other sites More sharing options...
msldystrkr Posted August 1, 2007 Report Share Posted August 1, 2007 Having filed suit against Cap One for FCRA violations I will speak from my own experience... There is a clause in their agreements that do cover this issue (credit reporting) and they can insist on arbitration... but you can insist on court mediation instead! IF you have already disputed the lates with the CRAs then your next step is to ask for reinvestigation and send a copy of your PROOF! Of course the CRAs will not accept your proof BUT this will give you more weight in court. And also don't forget to ask for reinvestigation with the OC and send them your PROOF! IF they don't accept your proof then again you have more weight with your court case. At this point contact an NACA attorney for filing suit in Federal Court. Link to comment Share on other sites More sharing options...
Leadhead Posted August 1, 2007 Author Report Share Posted August 1, 2007 ABSOLUTELY NOT.Any arbitration clause would only be allowed to cover aspects of the CONTRACT.You cannot sign away the OC's responsibility to not break the law.The FCRA and FCBA violations would be acts of the OC breaking the LAW. Any clause in a contract allowing that would be found by all judges to be ABSURD and stricken post haste.Thier requirements to obey the law in their actions are not something that can be subject to any clause in any contract.... other than your settlement agreement when they pay you That's my thought too. Link to comment Share on other sites More sharing options...
msldystrkr Posted August 1, 2007 Report Share Posted August 1, 2007 I thought so too.... until I was pointed this out - The Claims covered by this agreement to arbitrate include, without limitation:" any disputes regarding information obtained by us from, or reported by us to, credit bureaus or others:" Link to comment Share on other sites More sharing options...
Leadhead Posted August 1, 2007 Author Report Share Posted August 1, 2007 Fortunately, mine doesn't contain that language.Additionally, I've been seeing more and more case law showing that these arbitration agreements are unconscionable and unenforceable through basic contract challenges. Link to comment Share on other sites More sharing options...
Recommended Posts