Jump to content

Entering Jams Arbitration, how long does this process take?


Jasonmaust24
 Share

Recommended Posts

1 hour ago, Jasonmaust24 said:

has pushed the Jams case to the point of selecting an arbitrator.

Yes, original creditors do this. Most take the case all the way though arbitration, especially if they pay the arbitrator's fee. 

 

1 hour ago, Jasonmaust24 said:

How long will this whole process take

It depends on how long you want to drag out the inevitable. You can let the case follow its normal course and have a ruling in as soon as a couple months from now. Or you can request hearings for everything, including to have the arbitrator decide the sky is blue, and make it last 2 years. And then appeal all of that after the arbitrator's final determination and drag it out another 2 years. Just be aware that because you're using JAMS, there's a possibility you could get smacked with the full arbitration bill at the end, provided the original card agreement doesn't specify otherwise, or if the arbitrator finds you brought claims in bad faith. 

1 hour ago, Jasonmaust24 said:

what point is best to make an offer?

That would have been before they spent any money on arbitration. But again, it depends on the card agreement. If they know the fees are going to be shifted to you when they win (Discover, for example), they don't really care how much arbitration costs. 

  • Thanks 1
Link to comment
Share on other sites

Thank you! Would it still be possible to reach a settlement at this point? Who would I contact Discover or the lawyer representing them?

Also I have no bank accounts other than the one that my Ssdi check goes into and own no cars, property or anything worth going after. I’m a stay at home father so there is no income they can go after.

does any of this matter to them when discussing a settlement?

They could win in Jams and rack up a bunch of expenses that they would never be able to collect on...

Link to comment
Share on other sites

1 hour ago, Jasonmaust24 said:

Would it still be possible to reach a settlement at this point?

It is always possible to reach a settlement.  There have been a few isolated cases where Discover or AMEX got irritated by a consumer and dug in refusing to settle but if your negotiations are reasonable they should accept an offer.

1 hour ago, Jasonmaust24 said:

Who would I contact Discover or the lawyer representing them?

The law firm.

1 hour ago, Jasonmaust24 said:

Also I have no bank accounts other than the one that my Ssdi check goes into and own no cars, property or anything worth going after. I’m a stay at home father so there is no income they can go after.  does any of this matter to them when discussing a settlement?

The only answer is maybe.  The problem you have is that judgments obtained by suing someone in VA courts are good for 20 years.  The interest rate on judgments in VA is 6% UNLESS it is a money judgment based on a contract with an interest rate in which case the interest rate is 6% or the contract rate which ever is greater.  Since most credit card interest is 29% at the time of default you could end up racking up 29% a year interest on that judgment for 20 years.  Creditors knowing the judgment is good for 20 years may bank on your needing or wanting other credit down the line and having to deal with them.   If they get an award of the $4800 plus JAMS costs you could end up owing 5 or 10 times what the debt is now just based on a 6% interest rate alone. If the court confirms it as a judgment and uses the card agreement interest rate that debt would easily sky rocket.  

So while you are collection proof NOW that does not mean that down the road you want or need to buy a house, rent an apartment, or get credit for another reason and have to deal with this judgment to do so and end up paying a LOT more than $4800.  You have to decide the risk to benefit ratio.

Link to comment
Share on other sites

6 hours ago, Jasonmaust24 said:

Also I have no bank accounts other than the one that my Ssdi check goes into and own no cars, property or anything worth going after. I’m a stay at home father so there is no income they can go after.

Why the theatrics with arbitration then?  Just let them get their court judgment and forget about it.

Link to comment
Share on other sites

16 hours ago, Goody_Ouchless said:

Off topic, but I wouldn't mind a thread on how people achieve SSDI. I know folks that are really in need and are told to "live on the street," and others that are living the life of Reilly. 

 

Whether you get approved for SSDI depends heavily on where you live.  There are some districts where Judges will rubber stamp an SSDI application for chronic hang nails and others that are so rigorous that someone with end stage renal disease on dialysis can't get approved.  You can do a Google search and find pages of stories of back logs, needing attorneys and people who can't get approved.  One thing clogging the system is the when the recession hit the number of applications sky rocketed because people who lost jobs were not eligible for unemployment or it ran out and the job market was terrible so they went for disability instead.  Many had chronic conditions for sure but in no way kept them from working.  Those with legitimate claims get caught in the Matrix of those who merely want a free check.  

Link to comment
Share on other sites

On 4/6/2019 at 6:53 PM, Jasonmaust24 said:

Thank you! Would it still be possible to reach a settlement at this point? Who would I contact Discover or the lawyer representing them?

Also I have no bank accounts other than the one that my Ssdi check goes into and own no cars, property or anything worth going after. I’m a stay at home father so there is no income they can go after.

does any of this matter to them when discussing a settlement?

They could win in Jams and rack up a bunch of expenses that they would never be able to collect on...

I would send my settlement offer to them the day before the deadline to submit my strike list.  This will give them plenty of time to see the hourly rate of each potential arbitrator and your offer will give them a cheaper alternative route to consider.

If they refuse, I send my settlement offer again the day after the initial phone conference where discovery and hearing dates are set and a discussion of what claims each party has.

If they refuse, I send my settlement offer again about a week or two before the hearing date.

Arbitration can take anywhere from 2 months to two years depending on your arbitrator and the type and amount of claims you may have to counter them with.  When it is time for the initial phone conference, I would have a couple dates in mind that are about 3 - 6 months out to give as available dates you have for the hearing.

You ALWAYS contact the attorney at this point.  Everything is now through them.

Link to comment
Share on other sites

On 4/6/2019 at 6:53 PM, Jasonmaust24 said:

Thank you! Would it still be possible to reach a settlement at this point? Who would I contact Discover or the lawyer representing them?

Also I have no bank accounts other than the one that my Ssdi check goes into and own no cars, property or anything worth going after. I’m a stay at home father so there is no income they can go after.

does any of this matter to them when discussing a settlement?

They could win in Jams and rack up a bunch of expenses that they would never be able to collect on...

If Discover approaches settlements in Arb in a similar fashion to that of Amex; then yes, now would be a good time to make a settlement offer.  

I get the sense they are far more willing to settle for a reasonable percentage with consumers that haven't tried to take them for the full ride in Arb.  I worked out a decent settlement (50-60% of the balance, paid over the span of more than a year) about a month from when the initial conference call would have taken place.  At that point they had only spent about $2k on the Arb, which is peanuts relative to the six figures a full-blown Arb with an appeal would have cost them.

My advice would be to email Zwicker or whichever attorney you're dealing with.  Show them proof of your SSDI status, make a semi-reasonable offer that you can afford, and this should settle quickly.  If you don't have an email address for the attorney (it should be found in the Complaint), you may be able to find it on your state bar's website or resources such as Linkedin. 

Link to comment
Share on other sites

On 4/10/2019 at 5:27 PM, pulpfiction0 said:

I get the sense they are far more willing to settle for a reasonable percentage with consumers that haven't tried to take them for the full ride in Arb.  I worked out a decent settlement (50-60% of the balance, paid over the span of more than a year) about a month from when the initial conference call would have taken place.  At that point they had only spent about $2k on the Arb, which is peanuts relative to the six figures a full-blown Arb with an appeal would have cost them.

This is the point too many people are missing lately.  The OCs do not want to continue taking net losses just to stick it to a handful of consumers in arbitration.  The attorneys also would like to present something to make them look good to their clients (or employer), because just like you do at your job, you want the bosses to see that you do great work and can move up in your world.  Being REASONABLE  can be balanced with showing them you still have the WILLINGNESS to proceed to the end should a deal not be reached that you can actually pay. 

It's all about that balance of appearing like a lunatic who could be unpredictable, yet respectfully giving a very rational and reasonable offer at the proper time to make them think perhaps they should make a deal while you are being reasonable because who knows how crazy you might get again later (metaphorically).

The method I have used with OCs and CRAs goes like this:  File several claims in arbitration including asking for large punitive damages when allowed by statute.  Being very patient, yet objecting when they don't pay on time and, in one case with Experian filing a PTC in Federal court when they refused to arbitrate. Demanding that they follow all the consumer rules, filing many objections and asking for hearings.  But then, at the first point of settlement when an arbitrator is being selected, I will send an email to the attorney thanking them for their work and letting them know that I believe that their client and I should be able to come to an agreement so we don't have to continue spending so much time on this case (I like to make it clear that I understand the attorney is only doing a job and that any issues are between his client and myself).  I will give my offer and tell them I don't have much wiggle room, so I hope that their client is receptive.  Also, I make sure to always include an expiration date that your offer expires.  Never leave it open ended.  Using a little respect and finesse, especially after having a "battle" in the beginning to get arbitration going can help more than you think.

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

 Share

×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.. For more information, please see our Privacy Policy and Terms of Use.