fisthardcheese

Arbitration Overview and Strategy (2018 - Most Up To Date Info)

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On 9/18/2020 at 8:39 AM, BV80 said:

A process server is not considered a debt collector u dear the FDCPA.  See 15 U.S.C. 1692a(6)(D)

In some instances, JDBs hire their own process servers.  In those cases, it COULD be argued that the server is an agent of the JDB.  It probably wouldn't be as easy of an argument, but if I were in arbitration (not COURT), I may at least make the claim initially in order to conduct discovery on the process of service and how the server was contracted by the JDB.  If nothing else, it is a good use of time (and therefore the JDB's arbitration retainer) should the arbitration process get that far along.

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On 9/18/2020 at 3:00 PM, catlady22 said:
 
 

So what happens if you lose in arb? Do they run to levy your accounts/garnish wages or...?

The JDB has to go back to court and have the arbitration award confirmed by the court before they could garnish.  Should that happen, you can still negotiate a settlement for the judgement amount, either by paying the lump sum or asking if they will accept monthly payments.

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Good news -- they're willing to drop the collection lawsuit if I drop my arbitration case 😎 

They want to draft up the settlement agreement -- is there anything that I should make sure is included? Maybe verbiage to ensure they can't ever do this again with any other potential debt they may buy in the future? lol 

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41 minutes ago, DTLAPoor said:
 

Good news -- they're willing to drop the collection lawsuit if I drop my arbitration case 😎 

They want to draft up the settlement agreement -- is there anything that I should make sure is included? Maybe verbiage to ensure they can't ever do this again with any other potential debt they may buy in the future? lol 

What you need to do is:

1. Make sure the case is dismissed WITH prejudice.  

2. Make sure you and the JDB agree to drop all disputes against each other from the beginning of time until now, or for any action occurring before the signing of the agreement.  

Note that this sort of agreement doesn't preclude them from buying another debt, but if you word it properly, if you defaulted on the debt before signing the agreement, this would preclude them from collecting on that debt.

You could try to get them to put in something that they would never sue you for any other debt.  They probably wouldn't agree, but they might.  

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On 5/13/2018 at 10:32 AM, fisthardcheese said:

I always advocate the same with very limited exceptions for filing before being sued, such as an actual "small claims exclusion" in the card agreement, as with Citi cards.

However, in the case you speak of, the JDB has only paid the initial $2900 fiilng fee to AAA.  There will be another bill before the hearing, which is very likely the attorneys are unaware of yet.  AAA does not have as extensive of a fee structure as JAMS, so the max with an expensive arbitrator hourly rate would likely be $6000-$7000 in a AAA case.  However, this sounds more like the cases we have seen a couple times where the attorneys believe the initial filing costs are the only costs to bear for the arbitration (as it would be in court), but then are surprised at the second bill and decide to settle.

Also, AAA does have a consumer cap like JAMS and it's cheaper at $200.

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4 hours ago, Superdad3d said:

I ran across this article from 2017 saying AAA will not arbitrate cases involving Midland Funding.  Is this still the case?  

NCLC Digital Library - New Developments Limit Arbitration of FDCPA, Other Claims Against Debt Buyers and Collectors - 2017-07-19.pdf 18.46 kB · 2 downloads

It is unless there is a court order.  If you have a granted Motion to Compel Arbitration from court, AAA will honor that court order.

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Guys Greetings from Florida

I used to have a Travel Business and because of Covid things just got really difficult with the bills. I have credit cards with many banks but so far the only bank that is being really aggressive is AMERICAN EXPRESS. I had multiple accounts with them and all of them were closed almost two months ago. In total the balances are over 100k  with all of them combined and recently received the first letter that pretty much states the debt and the original creditor from 4 different collection agencies.  The first three letters are from NATIONWIDE CREDIT INC. There are 2 from GATESTONE , 2 from ALTRAN , and one from FIRSTSOURCE. As explained before they all show the same information. Some came 20 days ago others 28 days and the last ones around 15 days ago. I was planning to hire an attorney to help me with this situation but found this forum and really feel arbitration could be a possible defense in my case. I have read for hours and i think i got around 60 % of the strategy that i need but have couple of questions. 1) SINCE AMEX RARELY SELLS ITS DEBT SHOULD I WAIT FOR THEM TO ACTUALLY SUE ME OR WILL THE COLLECTION AGENCIES DO THAT IN THEIR BEHALF ?. 2) I COULD ASK THEM FOR A DV BUT I KNOW THE DEBT IS MINE AND I ALSO CONFIRMED WITH AMEX THEY ARE WORKING FOR THEM. I SEE SOME PEOPLE DID THAT IN SOME CASES BUT I DO NOT SEE IF THAT WILL ACTUALLY HELP MY CASE . 3)  I COULD POTENTIALLY HAVE 5 DIFFERENT ARBITRATION CASES THAT WILL BE REALLY COSTLY FOR THEM. SHOULD I START THE PROCESS NOW BEFORE I GET SUED WITH EACH INDIVIDUAL COLLECTION AGENCY?. Thank you in advance for all the help that you could provide. 

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13 hours ago, Inseriousdebt said:

I used to have a Travel Business and because of Covid things just got really difficult with the bills. I have credit cards with many banks but so far the only bank that is being really aggressive is AMERICAN EXPRESS.

Are these Amex accounts business accounts or personal accounts? If they are business accounts, you would not use the JAMS or AAA consumer rules. You would not have the protection of the consumer fee limits under the rules of JAMS or AAA. 

 

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Dear Botherskeeper

Thank you for such a promt response. I have a total of 7 personal accounts and one business account. I have not been sued yet but i think at this point is a matter of time for that to happen. Do you think arbitration will be effective . Thank you for your time and consideration 

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On 10/18/2020 at 5:42 PM, Brotherskeeper said:

Are these Amex accounts business accounts or personal accounts? If they are business accounts, you would not use the JAMS or AAA consumer rules. You would not have the protection of the consumer fee limits under the rules of JAMS or AAA. 

 

Dear Botherskeeper

Thank you for such a promt response. I have a total of 7 personal accounts and one business account. I have not been sued yet but i think at this point is a matter of time for that to happen. Do you think arbitration will be effective . Thank you for your time and consideration 

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19 hours ago, Inseriousdebt said:

Dear Botherskeeper

Thank you for such a promt response. I have a total of 7 personal accounts and one business account. I have not been sued yet but i think at this point is a matter of time for that to happen. Do you think arbitration will be effective . Thank you for your time and consideration 

I'm going to have to leave any advice on this to those like @fisthardcheese who have actually been through arbitration many times. It's my understanding--although anecdotal--that Amex is not deterred by arbitration or its costs. I don't know if it's possible for Amex to combine all of its accounts with you into a single arbitration or not. If they can combine them, it removes the benefit to you of their excessive costs for 5 claims.

I am not a lawyer. It's always best to seek professional advice, especially with debts this large. Amex is the original creditor and is not subject to the FDCPA. Do you have any possible FDCPA claims to bring against any of these third-party collection agencies?

https://www.nolo.com/legal-encyclopedia/what-is-the-diffrence-between-debt-collector-creditor.html

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It is true, AmEx isn’t scared of arbitration. 
It is possible to take the debt collectors into AmEx as well, and that can be a source of money.  
 

However, expect AmEx to throw anyone else under the bus if there are FDCPA claims.  Expect them to arbitrate separately. 
 

There have been SOME reports of AmEx being a little more willing to negotiate a settlement when faced with arbitration.  However, unless there is some significant malfeasance on the part of AmEx, they won’t walk away from a debt.  
 

Your only options are BK or settlement.  

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