AMEX collection

[motapa99]

Hello everyone,

I have approx $11,000.00 in collections from 3 cards from AMEX. I was told arbitration is the best way to resolve this issue.

facts:

- i have not been able to make any payments in the last 12 months.

- i tried to settle the debt with them approx 8 months ago but the rep informed me that the debt has been sold to collection agency

- the debt is still showing up from AMEX not any CA

- i am a california resident.

Any guidance will be greatly appreciated to resolve this.

Thank you

 

[Clydesmom]

5 hours ago, motapa99 said:

I was told arbitration is the best way to resolve this issue.

Not with AMEX and that amount of money.  AMEX will follow you into arbitration.  Arbitration can work but it greatly depends on the amount you owe and to who you owe it.

5 hours ago, motapa99 said:

- i tried to settle the debt with them approx 8 months ago but the rep informed me that the debt has been sold to collection agency

Was it actually sold or sent to collections?  If it is sold then you would have to settle it with the buyer of the debt.

 

[motapa99]

I have no information on who it was sold to. I have not received any correspondence from AMEX or any collection agency.

"Arbitration can work but it greatly depends on the amount you owe and to who you owe it. "

I have heard varying opinions on the message boards about this. Can someone please advise? On other forums I was told arbitration will not be an issue for this amount.

[fisthardcheese]

12 hours ago, motapa99 said:

I have no information on who it was sold to. I have not received any correspondence from AMEX or any collection agency.

"Arbitration can work but it greatly depends on the amount you owe and to who you owe it. "

I have heard varying opinions on the message boards about this. Can someone please advise? On other forums I was told arbitration will not be an issue for this amount.

No one can know, as there is no magic number or formula as to when they will or will not move forward with arbitration.  However, I can tell you that if it were me, I would take this to arbitraiton in a heartbeat.  My goal is not to "win", because in both court and in arbitraiton I will surely lose, but in arbitraiton I can stall and draw out the process which causes more and more expense to Amex with every step.  My hopes is that eventually I get to their breaking point where they agree to give up and not move forward anymore.  Also, I think Amex may have the JAMS appeal written into their arbitraiton clause.  That is a very good thing in your favor.  This means after they spend $25k on the first arbitration, you have the right to appeal to a 3-arbitrator panel costing them around another $100k.

For me, it's about playing the odds.  The odds are more favorable to me that they will give up in arbitration due to the expense.  They may not, but in court they definitely will not give up.

[motapa99]

So how do I start this arbitration process?

Also how long does it typically take to get matters resolved? OR Is there no timeline, depends on how far they want to stretch it?

[fisthardcheese]

9 hours ago, motapa99 said:

So how do I start this arbitration process?

Also how long does it typically take to get matters resolved? OR Is there no timeline, depends on how far they want to stretch it?

Exactly.  And the longer it takes, the better it is for you.  The entire goal in arbitration is to make it take longer by asking for hearings over issues with rules, discovery, etc.  You want as many hearings as you can on procedural issues without getting to the merits of the case.  Each hearing would cost Amex thousands of dollars and the goal is to eventually get them to say it's not worth dealing with any more.

To start arbitration, first, find a copy of your card agreement and read the arbitration section.  This will tell you what your rights regarding arb are, what your costs may be (if anything), which arb firm you can use and some other important information.

Once you know the arb firm named in the contract, you can go to their website to get the proper forms and instructions to file.  It will also be important to read and understand their rules for consumer arbitration.  The rules will be a very important part once you actually get into arbitration.  The other side will try to skirt the rules to get by cheaper or easier.  That is when you must object and ask that they follow the rules completely - and request hearings for these objections. That's how you gain leverage in arb.

If Amex has sued, you will need to file a motion to compel arbitration with the court.  You did not mention a lawsuit, so I am assuming you don't have to worry about this part?

[motapa99]

 

On 5/24/2016 at 3:04 AM, fisthardcheese said:

On 5/24/2016 at 3:04 AM, fisthardcheese said:

To start arbitration, first, find a copy of your card agreement and read the arbitration section.  This will tell you what your rights regarding arb are, what your costs may be (if anything), which arb firm you can use and some other important information.

Where can I find information about this?

 

I just dont understand how arb can cost them but not me? From what I know arb is extremely expensive and can cost a lot for both sides. What am I missing here?

 

[fisthardcheese]

What you are missing are the facts about consumer arb rather than uninformed opinions of other people.

You can find all the information in thevarbitration clause of the contract and in the rules of the arbitration forum.

[shellieh98]

Your fees are capped at 200.00, and the fact that you are in California, you don't even have to pay that, they have to pay for all of it.