question about initiating arbitration

[idahospud]

I have a Chase account that I stopped paying on around July 2008. It initially went to Fred Hanna and they initiated arbitration through NAF. This was in the early summer of 2009. I submitted a response saying that I refused arbitration. It was dismissed from that arbitration case (I'm assuming because that was about the time NAF was required to stop doing arbitration.) This account is now with an attorney in Idaho, which is where I live. I received the first letter from the attorney and responded with debt validation request however I did not include arbitration election because I had not read about it at that time. They sent me copies of my account statements back to about 2004 and also a letter saying they intended to pursue legal action. The total amount of the claim they provided in the letter does not equal the amount of principal and interest they listed nor does the principal amount equal the amount on the last statement they provided. I have not received a summons yet but a search of cases filed in the state of Idaho turmed up a case filed against me. It said the summons was issued on 3/25/2010 and was returned to plaintiff for service that same date. I'm assuming this means the attorney is to arrange for me to be served. The plaintiff is listed as Chase. I would like to initiate arbitration with JAMS at this point prior to getting served. So my question is when I send the demand for arbitration to the local attorney, can I also include a cover letter asking for the $500 to be forwarded to initiate? And since the amounts they provided do not match up is this a FDCPA violation (false or misleading representation)? Basically just want to make sure I'm on the right track. This alleged account is in excess of 25K. Thanks for any help you can give.

[chuckygee]

For $25k, they may pay the fee for arbitration. Read your Chase agreement very closely and make sure there is a clause that prevents them form sticking you with the cost of arbitration. It looks like on Page 5 section 5, they may only pay for 2 days of arbitration, after that the fees may be split.

Arbitration works very well for accounts $1k-$5k. Above that sometimes the cost analysis makes it worth going to arbitration for the plaintiff.

So proceed knowing that they may call you. Check Idaho laws and see if there is still a benefit to arbitration over litigation in court.

Edited May 2, 2010 by chuckygee
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[MG05]

25K is a big debt and I would think they will pay to arbitrate. I would file with JAMS so you can keep it out of court ... they most likely will have enough as the OC to get a judgment in court. Increasing the collection cost and taking the OC out of court is a very good option ... I think you could settle before a full blown arbitration. I would use the NAF as a claim against them and then the dismissal and now moving forward. Initiate very soon as the law suit is right around the corner!

[trueq]

I only did this because Chase SOLD ALL THE ACCOUNTS TO JDB'S. They do not own any debt any longer. (4 of 5 Chase accounts were terminated and indemnified by JDB in exchange for me droping my lawsuit against JDB).

So Chase is willing to waste money, rather than delete the tradeline. (Was Chase one of these bailout banks?)

I think there is a good chance Chase will sell the debt.

I think that is a better scenerio for you. Not say Chase will not sue, but i think they are more likely to sell to JDB.

Arbitrating against Chase or JDB at that point is inherently better.

But doing it now will put the issue to bed faster. One way or the other.

[idahospud]

Thank you all so much for your help!! I have been trying to decide if I should wait to see if I get served at all (only 5 mos. to go before it automatically gets dismissed - in Idaho have to be served within 6 mos. of case filing). I realize this is a large debt and they may very well pay the arbitration fees. I really just want a good settlement and have it all over and done with. That's why I was thinking of filing with JAMS. Didn't think I really had anything to lose at this point. I can always file BK if I end up having to pay too much in fees for my part.

So if I use the previous NAF arbitration filing against them would I claim that they previously elected arbitration, then dismissed, then continued with litigation without processing through arbitration? Just want to make sure I'm understanding this correctly. And, is the fact that the amount of debt on the initial notification they sent me doesn't match the statements and the amount of principal and interest doesn't add up to the amount they stated would this be considered an FDCPA violation? I'm thinking it is. Thanks again for all your help!!

[trueq]

that they waived their litigation rights if they sue.

This is a complicated legal question....can Chase cause something to unhappen?

In this case, Chase waiving both their right and your right to litigaate the dispute in court.

Is it a deceptive trade practice to sue at that point? I would say yes.

[chuckygee]

that they waived their litigation rights if they sue.

This is a complicated legal question....can Chase cause something to unhappen?

In this case, Chase waiving both their right and your right to litigaate the dispute in court.

Is it a deceptive trade practice to sue at that point? I would say yes.

You have a twisted way of thinking.

I like it!

[idahospud]

Thanks so much! I think I'm going to go for it and initiate with JAMS. Nothing to lose at this point in my opinion.

[idahospud]

Sorry to ask so many questions but do I send the demand for arbitration to the local attorney and Chase? And should I send one to be placed in the case file at the courthouse since I haven't been served yet?

Thanks again for all the help!

[idahospud]

Just need to post 3 times so I can PM back to someone who PM'd me. This is #1.

Thanks for your patience!

[idahospud]

Second one.

[idahospud]

3rd and final one.