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Collection Attorneys screw up big time (MBNA Arbitration)


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So I'm understanding....

MBNA got three arbitration awards for these people on three separate accounts. The attorney made an agreement with the people to settle "any and all claims" for $3900.00... not even enough to cover one of the arbitation awards on the account.

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So. MBNA settled, through their lawyer, with the Parkses. Then decided they wanted more and sent it to arbitration to try and get more. The arbiter-lap-dog awarded them more, but the appeal court essentially says NO. Although they confirm the arbitration (only because the law says they have to), the court says they are unenforceable in the wake of the settlement agreement...and the settlement agreement stands. Additionally, the Parkses get damages for MBNAs attempt to breach the settlement agreement.

That about sums it up.

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Basically:

-MBNA gets three arbitration awards against husband/wife

-Husband/wife's attorney reaches an agreement to settle the 1st arbitration award ($3500 on a $4500 award) with oblivious collection attorney (who apparently had no idea that there were two other arbitration awards against husband/wife..which totaled something like $70k)

-Settlement agreement contains a provision releasing parties from any and all claims against each other, and includes an attorneys fees provision for any actions arising from this agreement.

-MBNA tries to collect on the other two awards

-Husband/Wife motion to vacate the 2nd and 3rd arb awards; MBNA cross-motions to confirm the awards.

-The arb awards are confirmed; but they cannot be enforced because the Release in the Settlement Agreement was valid.

-End result: MBNA gets $3.5k for $75k in arbitration awards, AND they have to pay husband/wife's attorneys fees.

Gotta love seeing the MBNA/Wolpoff/Local bottom feeder collection attorney arbitration crap blow up in their faces ;)

So. MBNA settled, through their lawyer, with the Parkses. Then decided they wanted more and sent it to arbitration to try and get more. The arbiter-lap-dog awarded them more, but the appeal court essentially says NO. Although they confirm the arbitration (only because the law says they have to), the court says they are unenforceable in the wake of the settlement agreement...and the settlement agreement stands. Additionally, the Parkses get damages for MBNAs attempt to breach the settlement agreement.

That about sums it up.

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