Ragamuffin Posted September 13, 2016 Report Share Posted September 13, 2016 I keep reading that arbitration is the way I should go with my situation due to the fact it will be very expensive for the JDB. What makes it so expensive? What factors does a JDB weigh before deciding that the cost is worth it? I have an account with a JDB for bout 35k. They have retained an attorney to write letters to me at this point trying to collect. Quote Link to comment Share on other sites More sharing options...
Clydesmom Posted September 13, 2016 Report Share Posted September 13, 2016 5 minutes ago, Ragamuffin said: I keep reading that arbitration is the way I should go with my situation due to the fact it will be very expensive for the JDB. That is for when you owe less than 5k on the alleged debt. For 35k they would probably do it because it is in easy win. 6 minutes ago, Ragamuffin said: What makes it so expensive? Having to use an arbitrator's panel and pay them. There are specific fees paid at each step of the process unlike court where once you file that is usually the end of the fees. Not to mention the arbitrator cannot award attorney fees and arbitration fees in the award against the consumer but in court the judge can award costs and attorney fees to the winning party. 7 minutes ago, Ragamuffin said: What factors does a JDB weigh before deciding that the cost is worth it? How much the debt is and how much arbitration would cost. If a consumer debt they bought is $1300 and the first fee to JAMS arbitration is $1200 for the filing and the hearing fee is $5000 then it is financially worth it to just drop it and let that consumer go. As I said before 35k might be worth the expense to them. The point of filing for arbitration is NOT to actually arbitrate (because you will lose) but to make it so expensive that the JDB drops the whole idea of collecting. 1 Quote Link to comment Share on other sites More sharing options...
Ragamuffin Posted September 13, 2016 Author Report Share Posted September 13, 2016 How do you make it expensive enough for them to want to drop it? Quote Link to comment Share on other sites More sharing options...
Clydesmom Posted September 13, 2016 Report Share Posted September 13, 2016 30 minutes ago, Ragamuffin said: How do you make it expensive enough for them to want to drop it? When the account is small enough often simply filing for arbitration is enough to do it. Who is the original creditor? Some have removed that option from their card agreements so even though it was recommended it may not even be available to you as an option. Even so, at a debt of 35k I could see it being worth the expense to the JDB to pursue it. There are creditors like Citi, AMEX, and Discover who will follow a consumer into arbitration no matter what the expense so there is no cut and dried method to make it happen. 1 Quote Link to comment Share on other sites More sharing options...
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