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Arbitration may not be your best defense!

81 posts in this topic

Alternate arbitration forums, not named in the contract, need agreement from both parties!

That is a mess not easily cleaned up for debt attorney.

Heck, the U.S. Bank contract with its AAA only clause says alternate arbitration forum has to be agreed upon by both parties and:

1.) has to do business on a nationwide basis

2.) have similar rule and fee structure to AAA

3.) be neutral

As a consumer, I can argue until eternity that ANY of the proposed alternatives do not meet those parameters.

How much leverage do you have at this point? A LOT!

Because of the state of the "big 3" arbitration forums, we have to get passed the NAF issue and look at this as a useful tool for consumers now. WAIVING YOUR OPPONENTS LITIGATION RIGHTS IS A POWERFUL THING.

Because of the NAF, this was never a wise idea. This has now changed.

Remember NAF did 216,000 credit card arbitrations in 2006. AAA did about 900 consuumer arbitrations (all types including other consumer issues) in 2007. AAA rejected 85 cases for consumer due process protocol violations in the business arbitration clause. JAMS doesn't do debt colllection arbitration and I just confirmed JAMS case manager does not recall any previous arbitrations involving Cap1 at Las Vegas location.

AAA is 10 times better than NAF, although I still reccomend to stay away from AAA (but I'm sure U.S. bank, B of A, and Chase are all on the AAA unacceptence arbitration clause list, even if consumer initates). JAMS is 100 times better than AAA. My local court system is somewhere between AAA and JAMS for consumer fairness.

Edited by trueq

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OK - so you're just saying that if you can't find an arbitration forum - the case is stalled forever?

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The underlying case on "court stay" will be eventually administratively swept.

If debt lawyer feels consumer is unreasonable in rejection of alternative, they could always motion the court to force the alternative.

http://www.consumerlaw.org/naf/nclc-rpts-udap-jul-aug-2009-web.pdf

However, the FAA does not empower judge to replace the arbitration forum, only arbitrator inside the designated forum.

So this leads to a possible "integral" vs" non-integral" argument on judge altering the contract in relation to forum if judge were to ignore FAA on this issue.

If judge were to force an unpleasant alternative, that could be appealed, etc. (We discussed the "world cruise" of this previously.)

In my experience,

1.) Attorneys get fired once the arbitration order is entered.

2.) Those attorneys that do survive and have to initiate arbitration do nothing. (because that is all they can do)

3.) Those attorneys that do want to advance their case, do not even want to talk about a mutually agreed on alternative (they go nuts at the suggestion over my massive criteria "bullet list" and violate your FDCPA rights by advancing litigation instead, which is NOT possible once a case is ordered to arbitration.)

So I've never, ever, even got to the discussion of the alternate forum suggestions, even though I have offerred. (I'm a very cooperative guy)

Debt attorney's are so hacked off by the arbitration exercise, they throw reason and law out the window!

Just my experience.

Edited by trueq

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If you add arbitration exercise to your DV and they sue...its a violation of FDCPA!

The crooked CAs like H&H in my case are not stupid. They will lie that you missed your time to file DV. Since there is no requirement to send you their triggering "initial contact" by certified mail. They will always use some in house scum back who will sign an affidavit similar to a service by mail.

How do you beat that.

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Swear out an affidavit you sent it.

They have to counter with an affidavit they didn't get it.

I had a JDB do this to me over "cease call" issue in DV.

Sent them discovery. In packet they time stamped receipt of my DV letter with cease call demand, yet denied they received such a demand in admissions.

Not to long after that I got a fat check!

ITS NEVER ABOUT WHAT ACTUALLY HAPPENED, ITS WHAT YOU CAN DOCUMENT.

If you sent it Certified Return Receipt, you can show they got it....easy, no matter what their deniel.

In my experience, lawyers don't ant to mess with the arbitration exercise because they know its an expensive method of recovery for their client. If you are smart enough to know what arbitration means these days, know there is a Arb. clause in the contract, have exercised it, you are too much trouble 95% of the time to deal with and they will cut you off as a "problem" debtor who knows his rights.

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In my experience, lawyers don't ant to mess with the arbitration exercise because they know its an expensive method of recovery for their client. If you are smart enough to know what arbitration means these days, know there is a Arb. clause in the contract, have exercised it, you are too much trouble 95% of the time to deal with and they will cut you off as a "problem" debtor who knows his rights.

Bad debt buying is about default judgments and wage garnishment. It is about little billable time for an attorney and lots of profit. Arbitration with NAF was a breeze and a certain payout just like most courts … since the NAF’s demise arbitration took a completely different turn and one most JDB’s or OC will not mess with ... hell most of them run away. They will not mess around with spending thousands of dollars … too much bad debt to collect these days! :arrow:

Edited by MG05

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