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Midland paid Jams fees


cwrose79
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I initiated and paid at the end of December. I had a pre-trial last week where the judge tried to get us to settle but i refused unless they wanted to dismiss with prejudice. They said no and i said goodbye. Today received the Jams commencement letter via email. It looks like i have to now set up my strike list.

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They may have paid the first JAMS bill, but wait until the next one comes - about $5K, is my understanding. 

 

Then the big bill - which can be over $20K. 

 

No JDB will pay these fees for a $2K debt that they paid maybe $200 for.  Hold your ground.  When the next bill comes, they will either give up or come to you asking to settle.

 

The party that seeks settlement first is the weaker party, IMO.

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My Arb in JAMS was over $40,000 with attorney's fee's and JAMS fee's added in. All for a less than $2400 alleged debt - I'm now appealing to a three panel Arbitration.

 

Difference between you and I, I'm dealing with Capital One/OC.

 

You are dealing with a JDB - once they get the retainer fee they will either not do anything at all (just let it die and be closed, allowing you to either MTC them to arbitrate or MTD w/prejudice for them not arbitrating their claims per the contract).

 

Personally, in a good faith effort, after the strike list is made and a telephone conference is set I'd reach out and attempt a mutual walk away settlement.

 

If not, then let them continue to pay to play.

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That is high risk for BOTH of you though. They are not gamblers. They will not gamble 40 large on a small debt. They make money on people who roll over. Why would they bother with this risk?

 

Think about this. Say 20 people go the arbitration route for $2k. They pay the $40,000 on all cases and win 19 out of 20.

 

They make $38,000 on the 19 winners.

They lose $40,000 on the ONE loser.

 

Did you read that? They LOST $2,000 after winning 19 of 20 cases in arbitration.

 

Those are horrible odds even if you ARE a gambler. They follow a business model that says don't risk more than you can profit. The end.

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40k for 2400 bucks!?!? I dont see how that makes sense? The thing that worrys me is having to file for BK if i lose in Arbitration due to the high cost of ARB fees that can be awarded.

 

Yes. In the post hearing briefs they had to submit an affadavit for the fee's they were requesting in their award (if they won). The fee's were over $40,000 for everything down to plane tickets and coffee.

 

They were not allowed their fee's from the arbitrator, except a $250 filing fee (makes no sense either). Even if they go back to confirm the award in court they will still only get that alleged debt amount, not $40,000.

 

JAMS does not allow a consumer to be stuck with fee's unless the contract states you can - READ THE CONTRACT - Capital One specifically stated "Both parties will bear their own fee's and costs". Then check your state's law's regarding fee's on collection of debts. Even if the Arbitrator awarded the fee's on my arbitration, it would've been grounds to vacate as my state wouldn't allow such fee's to be added to the debt.

 

 

 

That is high risk for BOTH of you though. They are not gamblers. They will not gamble 40 large on a small debt. They make money on people who roll over. Why would they bother with this risk?

 

Think about this. Say 20 people go the arbitration route for $2k. They pay the $40,000 on all cases and win 19 out of 20.

 

They make $38,000 on the 19 winners.

They lose $40,000 on the ONE loser.

 

Did you read that? They LOST $2,000 after winning 19 of 20 cases in arbitration.

 

Those are horrible odds even if you ARE a gambler. They follow a business model that says don't risk more than you can profit. The end.

 

You are right and wrong in part - A JDB won't go through Arb due to the cost. They are too busy getting SJ's in court raking in money from those people who don't know any better and will pay the full amount to them. Thats where the JDB will make their money on the debts they paid pennies for.

Paying the filing fee's is another way to attempt to scare the OP into paying and or running the clock on any violations the OP may have against them. They will stall and or not do anything at all so the OP can't file a federal suit for FDCPA claims.

 

In Arb you are more likely to not be stuck with the fee's due to the reasons I posted above. BUT I have a strong feeling that OC's are getting "deals" on these fee's for using these forums so much (like NAF). If you notice, certain OC's like certain Arbitration forums over the other (Cap 1 likes JAMS but not AAA, Citi likes AAA but not JAMS, etc). There are certainly back room dealings going on with these companies.

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Yes. In the post hearing briefs they had to submit an affadavit for the fee's they were requesting in their award (if they won). The fee's were over $40,000 for everything down to plane tickets and coffee.

 

They were not allowed their fee's from the arbitrator, except a $250 filing fee (makes no sense either). Even if they go back to confirm the award in court they will still only get that alleged debt amount, not $40,000.

 

JAMS does not allow a consumer to be stuck with fee's unless the contract states you can - READ THE CONTRACT - Capital One specifically stated "Both parties will bear their own fee's and costs". Then check your state's law's regarding fee's on collection of debts. Even if the Arbitrator awarded the fee's on my arbitration, it would've been grounds to vacate as my state wouldn't allow such fee's to be added to the debt.

 

 

 

 

You are right and wrong in part - A JDB won't go through Arb due to the cost. They are too busy getting SJ's in court raking in money from those people who don't know any better and will pay the full amount to them. Thats where the JDB will make their money on the debts they paid pennies for.

Paying the filing fee's is another way to attempt to scare the OP into paying and or running the clock on any violations the OP may have against them. They will stall and or not do anything at all so the OP can't file a federal suit for FDCPA claims.

 

In Arb you are more likely to not be stuck with the fee's due to the reasons I posted above. BUT I have a strong feeling that OC's are getting "deals" on these fee's for using these forums so much (like NAF). If you notice, certain OC's like certain Arbitration forums over the other (Cap 1 likes JAMS but not AAA, Citi likes AAA but not JAMS, etc). There are certainly back room dealings going on with these companies.

 

I actually don't know the rules regarding a court awarding costs to arbitrate. I was just using that example assuming that they can and even with that assumption it doesn't make sense for them to gamble.

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Very true indeed.

 

This is directly from Jay Welsh of JAMS, this is great to use in your post hearing brief or arguments at the hearing if you get that far:

 

General legal counsel of JAMS at the FTC roundtable in San Francisco on 9/29/09:

Jay Welsh: "No. I just wanted to make sure that -- one of the reasons I wanted to be here is so that the broad brush wouldn't be too broad. JAMS doesn't do debt-collection arbitrations. Never has. And although I've been getting a lot of calls lately from banks asking if we would be willing to do it, my response is that it's like asking somebody who doesn't drink whether you're gonna start drinking. [ Laughter ] But we have had consumer protection since the mid-, late-'90s where in consumer cases, one of the requirements is that consumers don't pay. They just pay what they would pay if they filed in court. They don't pay the arbitrator's fees in consumer arbitrations as that is defined. So the cost of the arbitrator -- and I believe even NAF, everything was paid by the company. I don't think that's a reason in these kinds of debt-collection cases." Full FTC Roundtable testimony available at: http://www.ftc.gov/bcp/workshops/debtcollectround/090929-SANF/90929ftc.pdf

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