Arbitration Question

[kungfufreddy]

The process:

The whole arbitration Process:

1. A credit-card company or retailer files a claim with the National Arbitration Forum

2. The creditor notifies the consumer of the claim; 40% of all cases settle

3. Cases that don't settle are assigned to arbitrators, who are lawyers and sometimes former judges

4. Consumers can respond in person or in writing, but for various reasons, the vast majority don't

5. Arbitrators decide whether to make awards, which can include interest and creditors' legal fees

Great article from Business Week!

I have a case set for arbitration. Is it better to arbitrate as the defendant or request a trial?

What are the doensides to arbitration?

My case is an OC that "assigned' the debt to a credit union I dont know and never did business with. In fact they never tried to collect from me. the first i ever heard of them was when I recieved a summons.

[Debt Guy]

My case is an OC that "assigned' the debt to a credit union I dont know and never did business with. In fact they never tried to collect from me. the first i ever heard of them was when I recieved a summons.

That would be a pretty weak defense. The creditor is not required to contact you before filing suit.

I have a case set for arbitration.

Do you mean mediation? Arbitration is an alternative procedure to litigation. You said you have a summons. Are you being sued?

Is it better to arbitrate as the defendant or request a trial?

It depends on your defense. And it depends on what you mean by trial -- a bench trial or a jury trial. If you are acting pro se, a jury trial may well be beyond your skills level. A bench trial would make more sense, in my opinion.

I am hoping you mean mediation instead of arbitration. A mediation is an effort to get the parties to agree in order to avoid a trial. An arbitration is an informal mini-trial before a arbitrator who has the authority to make a decision and grant an award.

[bubbaboo]

I am assuming this is not arbitration before the NAF. If it is, start researching the issue here.

If this is court ordered arbitration: I know that some courts will divert cases to either arbitration or mediation within the system. If that is the case, I think that you would do well in arbitration. It is a lot less formal than standing before the Judge and would be a good alternative if you are representing yourself and are inexperienced. But, usually the arbitrator can make a binding decision, so if you lose, it is all over. Mediation is better because the mediator tries to work out an agreement that is acceptable to both sides, and it is possible both sides will leave feeling justice was done (or they both leave thinking they got screwed).