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OC will not agree to Arbitration


debt-warfare
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A buddy of mine is getting sued by American Gen Fin for $2,400 and sent a letter to elect Arbitration...American General Finance in turn refused to agree because of a detail he missed that states under the Arbitration Agreement:

MATTERS NOT COVERED BY ARBITRATION

"either party has the option to bring a lawsuit to recover an amount which does not exceed the total sum of $5,000"

Also from on the letter, "if a lawsuit is filed the other party cannot require that claims in that lawsuit be arbitrated."

The lawsuit is in the state of Illinois. So what now? Is there anyway other way to pursue arbitration? American Gen Fin is ruthless in their collection efforts, they even came to his home and demanded payment.

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The only real chance your friend has is to counter their suit with a claim for emotional distress, and hope it makes them go away. IL's debt collection laws don't include finance companies, and the FDCPA doesn't apply.

A buddy of mine is getting sued by American Gen Fin for $2,400 and sent a letter to elect Arbitration...American General Finance in turn refused to agree because of a detail he missed that states under the Arbitration Agreement:

MATTERS NOT COVERED BY ARBITRATION

"either party has the option to bring a lawsuit to recover an amount which does not exceed the total sum of $5,000"

Also from on the letter, "if a lawsuit is filed the other party cannot require that claims in that lawsuit be arbitrated."

The lawsuit is in the state of Illinois. So what now? Is there anyway other way to pursue arbitration? American Gen Fin is ruthless in their collection efforts, they even came to his home and demanded payment.

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your friend could counter sue for $5,500

I agree with this. Counter for more than small claims allows.

The part about: "if a lawsuit is filed the other party cannot require that claims in that lawsuit be arbitrated." doesn't matter. The Federal Arbitration Act overrides the contract, as does IL's arbitration act.

http://law.justia.com/illinois/codes/chapter51/1867.html

Pick up the forms necessary to file a countersuit. Counter for $5,500 or more, claim infliction of emotional distress.

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Instead of a counter suit, why not a Motion to Compel Arbitration stating that Federal Arbitration Act and the IL's arbitration act supersede the OC Arbitration Agreement. Will that work? From what I have read in the IL's arbitration act, a judge cannot deny it...

"Sec. 2. Proceedings to compel or stay arbitration.) (a) On application of a party showing an agreement described in Section 1, and the opposing party's refusal to arbitrate, the court shall order the parties to proceed with arbitration, but if the opposing party denies the existence of the agreement to arbitrate, the court shall proceed summarily to the determination of the issue so raised and shall order arbitration if found for the moving party, otherwise, the application shall be denied."

The agreement exist, but the only catch is the $5K issue...obviously the attorney for Amer Gen will be throwing a hissy fit, but it's evident that they do not want to take the route of arbitration.

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Guest usctrojanalum
Instead of a counter suit, why not a Motion to Compel Arbitration stating that Federal Arbitration Act and the IL's arbitration act supersede the OC Arbitration Agreement. Will that work?

Short answer, No.

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I'm guessing that what your buddy is hoping to do is get this dispute tied up in the CC Arbitration fiasco with NAF, JAMS, and AAA.

I'm not a lawyer, but I beleive the Federal and State Arbitration Acts apply to court ordered arbitration...which is an entirely different animal.

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Guest usctrojanalum

He is not going to be able to force arbitration via motion with the small claims exclusions that are in the contract.

Edited by usctrojanalum
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So if he counter sues for $5,500...what then in regards to Arbitration? What is the process in submitting a counter suit in IL? Should he just write up a complaint against Amer Gen referencing their lawsuit against him, or not even metion it at all?

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So if he counter sues for $5,500...what then in regards to Arbitration? What is the process in submitting a counter suit in IL? Should he just write up a complaint against Amer Gen referencing their lawsuit against him, or not even metion it at all?

This is in small claims court, correct? If so, there should be a simple form to fill out.

http://smallclaims.uslegal.com/small-claims-laws-by-state/illinois-small-claims-law/

Ask the clerk of court for the forms.

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A buddy of mine is getting sued by American Gen Fin for $2,400 and sent a letter to elect Arbitration...American General Finance in turn refused to agree because of a detail he missed that states under the Arbitration Agreement:

MATTERS NOT COVERED BY ARBITRATION

"either party has the option to bring a lawsuit to recover an amount which does not exceed the total sum of $5,000"

Also from on the letter, "if a lawsuit is filed the other party cannot require that claims in that lawsuit be arbitrated."

The lawsuit is in the state of Illinois. So what now? Is there anyway other way to pursue arbitration? American Gen Fin is ruthless in their collection efforts, they even came to his home and demanded payment.

Has he actually read the arbitration clause or are you going on what the Plaintiff is stating as the contract. Always review the contract before taking the Plaintiff's word on anything.

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