AMEX Business Charge Card - Should I elect Arbitration?

[St John]

I am being sued by AMEX thru a local law firm

Suing both my company and me

 

Amount $8000

I will lose in court

 

I have approx $100,000 in Personal & Business CC Debt

 

My goal with this card is to delay for 6-12 months to get money for settlement.

 

I am closing the company and moving to make myself Judgment proof EXECPT that I own my home with about $100,000 in equity.  That falls in my Homestead exemption but I do believe that they can get a lien so that if I do sell - they get paid?

 

My concern with Arbitration is their Lawyer Fees????  In my court they are limited to $1000.

 

Here is what the CC agreement says:

You will be responsible for paying your share, if any of the arbitration fees provided by the Code, to the extent that such fees you would have incurred if the claim had been brought in the state or federal court closets to your billing address that would have jurisdiction of the Claim.  We will be responsible for paying the remainder of any arbitration fees. .....  You will not be assessed any arbitration fees in excess of your share if you do not prevail in any arbitration with us.

 

Again - What about their Lawyer Costs??

 

 

[sillymonkey]

I believe there's another clause that says they will charge you the collection fees, incl lawyer fees. However, your state may limit how much they can actually collect. Check your state's consumer laws (I found mine through the AG's site). In CO, it's limited to 15% of the original debt. I believe in CA, each side bears their on costs.

[racecar]

http://kansasstatutes.lesterama.org/Chapter_60/

http://kansasstatutes.lesterama.org/Chapter_61/

http://kansasstatutes.lesterama.org/Chapter_5/Article_4/

http://www.creditinfocenter.com/community/topic/314030-the-strategy-and-steps-of-arbitration/

http://www.jamsadr.com/

https://www.americanexpress.com/us/content/cardmember-agreements/centurion.html

 

 Are you in Stafford

 

I would elect arbitration.

If a junk debt buyer has the account they wont want to pay for it.

Who is the law firm

Arbitration Fees and Costs

You will be responsible for paying your share

of any arbitration fees (including filing,

administrative, hearing or other fees), but only

up to the amount of the filing fees you would

have incurred if you had brought a claim in

court. We will be responsible for any additional

arbitration fees. At your written request, we

will consider in good faith making a temporary

advance of your share of any arbitration fees,

or paying for the reasonable fees of an expert

appointed by the arbitrator for good cause.

[sillymonkey]

I managed to get Amex to pay ALL the arb fees because of their clause:

You will be responsible for paying your share

of any arbitration fees (including filing,

administrative, hearing or other fees), but only

up to the amount of the filing fees you would

have incurred if you had brought a claim in

court.

 

In many states, you can apply for a court fee waiver if you earn less than a certain income level/have little to no assets. Check with your local court. I sent JAMS the court fee paperwork for their consideration, with the income limits highlighted, and copies of my tiny payroll check. They granted my request and made Amex pay the full initial fee of $800 instead of charging the $250 part to me. WIN!