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Arbitration Against Original Creditor?

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From what I understand, the typical defenses against a JDB is not applicable against an OC, as someone suggested on this thread.

 

There are others who suggest arbitration in fighting the JDB or OC.  The theory behind it is to make litigation through arbitration (such as JAMS) so costly that the other party will back off.

 

If fighting against an OC in court is indeed a lost cause, then isn't arbitration (such as through JAMS) a viable alternative?  Why not give arbitration a shot?

 

Let's say he or she ultimately loses in arbitration.  How is this person even worse off than before?

 

Here's my thinking.  Why not go down in flames fighting in arbitration (even if defeat is inevitable), and cause as much pain on the OC as possible?

 

Maybe, just maybe, the defendant can get a better settlement, in the meantime?

 

Note:  I am not advocating for or against arbitration.  I just want to understand the reasoning on either side.  Thanks.

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One of our wise contributors always says, and correctly, that a bad case in court will be a bad case in arb. In dealing with an OC, the point of arb is as you say, to make it costly so that you may be able to negotiate a settlement. That is the realistic goal .

 

Certain OC's have really wised up in arb and are being much more aggressive, such as Citi, which, will take the arb all the way through its appeal process.

 

Others, like Discover, no longer seem to be interested in pursuing arbitration and so a successful settlement may be easier to come by.

 

You are correct in thinking if you do not prevail in arb ( and if you are unfortunate enough to go all the way to the hearing, you will not prevail) you are no worse off than if you had remained in court and received a judgment.

 

You will have bought yourself a significant amount of time however, either to save up for a possible settlement, prepare for bk., or just to have cost the OC a bunch of money. JAMS is where you are able to do this most effectively.

 

Since we don't know who the OC is I can't speculate further. Be advised, if it is Citi, they will fight you all the way.

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I agree that when taking an OC to arbitration it's more about buying time and costing the other side money in hopes of a settlement rather than trying to prevail in a hearing which won't happen. For me it's been nearly 2 years since lawsuit was filed and since then I stayed the case pending arbitration and went completely through to a hearing. Now beginning the appeal process before panel of 3 arbitrators. Each OC and every case is different but at the end of the day a judgement is still a judgement. Whether you left the case in court and let judge rule or go through arb and let arbitrator rule. IMO arbitration is still worth trying. Especially if you have BK as your wild card.

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@bonedaddy77 ... sounds like you're referring to "court ordered arbitration".  The OP is talking about invoking the arbitration clause in the CC contract.  That's thru JAMS...

 

No. I'm in private contractual arbitration using JAMS

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