Velocity Investments Agrees to Conditional Consent To Arbitration? HELP!

[Rockon]

So, I filed an MTC Arbitration after being sued by Velocity Investments for a Lending Club debt that they claim is now $13,500.

They agreed to conditional consent to arbitration. Here is the wording of the conditional consent:

 

"Comes now Plaintiff, by and through counsel, and hereby notifies the Court 0f its conditional consent to an Order dismissing the instant proceeding and referring it to arbitration, so long as Defendant complies With all relevant provisions of the contract, including but not limited t0 Paragraph 17(c) (initiation of arbitration) and 17(d) (payment 0f costs and fees), and so long as Defendant is required to initiate arbitration in timely manner."

 

Here are the paragraphs they are referring to:

"c. The party initiating arbitration shall d0 so with the American Arbitration Association (the "AAA") 0r JAMS. The arbitration shall be conducted according t0, and the location 0f the arbitration shall be determined in accordance with, the rules and policies 0f the administrator selected, except t0 the extent the rules conflict with this Arbitration Provision 0r any countervailing law. In the case 0f conflict between the rules and policies 0f the administrator and this Arbitration Provision, this Arbitration Provision shall control, subject t0 countervailing law, unless all parties t0 the arbitration consent t0 have the rules and policies 0f the administrator apply.

d. If we (0r LendingClub) elect arbitration, we (0r LendingClub, as the case may be) shall pay all the administrator's filing costs and administrative fees (other than hearing fees). If you elect arbitration, filing costs and administrative fees (other than hearing fees) shall be paid in accordance with the rules 0f the administrator selected, 0r in accordance with countervailing law if contrary t0 the administrator's rules. We (0r LendingClub, as the case may be) shall pay the administrator's hearing fees for one full day 0f arbitration hearings. Fees for hearings that exceed one day will be paid by the party requesting the hearing, unless the administrator's rules 0r applicable law require otherwise, 0r you request that we (0r LendingClub) pay them and we agree (0r LendingClub agrees) t0 d0 so. Each party shall bear the expense 0f its own attorneys' fees, except as otherwise provided by law. If statute gives you the right t0 recover any 0f these fees, these statutory rights shall apply in the arbitration notwithstanding anything t0 the contrary herein."

 

I'm a little confused because I thought that they wouldn't want to go into arbitration. What's their strategy here? Obviously, I need to file my arbitration case now. But is there something I'm missing? I'm assuming they are referring to the paragraph d on payment. Do I need to be worried about that? I thought consumer fees were capped with JAMS and AAA. 

[Harry Seaward]

They are bluffing.  You'll have to pay the initial fee ($200, or $250) but they'll dismiss at some point after that.

[Rockon]

Well, I payed my fee a while back and it looks like they are finally paying the initial fee to start the jams arbitration... I'm going to re-read the arbitration strategy post, but does anyone have any other advice?

[Harry Seaward]

Some JDBs have paid the initial fee, but they always dismiss when they get the $5,000 bill.  You might have to put a little more time and effort into this, but no more money.

[Rockon]

On 11/17/2019 at 10:37 AM, Harry Seaward said:

Some JDBs have paid the initial fee, but they always dismiss when they get the $5,000 bill.  You might have to put a little more time and effort into this, but no more money.

Thanks for the encouragement. I have been sent a list of arbitrators to choose. Any idea if one is better than the other? TIA

[Harry Seaward]

2 hours ago, Rockon said:

Any idea if one is better than the other?

The general consensus is to pick the one that charges three highest hourly rate. 

[Raymond]

18 hours ago, Harry Seaward said:

The general consensus is to pick the one that charges three highest hourly rate. 

How do you go about getting their rates?  calling their personal office and asking or is there another way?  thank you.

 

R

[BackFromTheDebt]

On 11/28/2019 at 11:10 AM, Raymond said:

How do you go about getting their rates?  calling their personal office and asking or is there another way?  thank you.

 

R

Sometimes they list the rates; sometimes not.

[Rockon]

When the time comes, the arbitration company will send you their info, including rates.

[LaneBlane]

21 hours ago, Rockon said:

When the time comes, the arbitration company will send you their info, including rates.

Did you send your strike list to JAMS by the deadline?  If I recall correctly, after the arbitrator is chosen, JAMS will send Velocity that hefty bill Harry Seaward mentioned.

[Rockon]

Yes, and got the most expensive one... That was just very recently. We will see what happens.

[ronwar]

I have a similar amount with Velocity...watching closely. Thanks for the updates.

[Dgree]

On 12/7/2019 at 5:35 AM, Rockon said:

Yes, and got the most expensive one... That was just very recently. We will see what happens.

Any updates?

[Rockon]

I think we have been waiting on them to pay the retainer invoice... JAMS is closed until the 2nd now. I should know more after that.

[Dgree]

On 12/26/2019 at 6:38 AM, Rockon said:

I think we have been waiting on them to pay the retainer invoice... JAMS is closed until the 2nd now. I should know more after that.

What was the amount of the retainer invoice?

[Rockon]

13 hours ago, Dgree said:

What was the amount of the retainer invoice?

I believe it is $5k, but they didn't copy me on it.

[Rockon]

Update: they have paid the retainer fee and the initial call will be scheduled soon. I'm going to re-read the arbitration strategy, but does anyone have any other advice?

[Harry Seaward]

So they paid the initial $1,750, and now another $5,000?

This is rare, but it has happened in the past. Did you allege counterclaims in your arbitration demand? Have they tried to contact you? 

[Rockon]

22 minutes ago, Harry Seaward said:

So they paid the initial $1,750, and now another $5,000?

This is rare, but it has happened in the past. Did you allege counterclaims in your arbitration demand? Have they tried to contact you? 

Yes. They paid both fees.

I listed the case as "consumer debt dispute." I believe they have been calling me from different numbers. I haven't answered and they haven't left voicemails.

[Harry Seaward]

They may be under the impression that the arbitrator is going to allocate their fees back to you at the conclusion of the arbitration proceedings. I think i would send an email to the case manager with a CC to opposing counsel and ask for clarification on who will be paying the fees. This entire case could very well pivot on the response you get back from the admin. 

[Harry Seaward]

Any updates on this?

[Rockon]

9 hours ago, Harry Seaward said:

Any updates on this?

I sent the email you suggested and everything went dead silent... I've had a lot of other stuff going on, so I haven't even thought about it. I'll check in. 

[Dgree]

On 1/28/2020 at 2:55 AM, Rockon said:

I sent the email you suggested and everything went dead silent... I've had a lot of other stuff going on, so I haven't even thought about it. I'll check in. 

Any updates?

I plan on starting another thread to document my journey thus far, but at this point I am trying to lay low until arbitration is over.

I have the first conference call this week, we will see where it goes from there.

Law firm for velocity paid both the initial fee ($1500) and the Retainer ($6000). However as I suspected, they believe they will recoup the money from me if they win. 
 

I wrote a long email explaining to their counsel that they are incorrect (I am in CA). I plan on bringing the issue up during the conference call.

[Rockon]

15 minutes ago, Dgree said:

Any updates?

I plan on starting another thread to document my journey thus far, but at this point I am trying to lay low until arbitration is over.

I have the first conference call this week, we will see where it goes from there.

Law firm for velocity paid both the initial fee ($1500) and the Retainer ($6000). However as I suspected, they believe they will recoup the money from me if they win. 
 

I wrote a long email explaining to their counsel that they are incorrect (I am in CA). I plan on bringing the issue up during the conference call.

Still nothing.... Waiting to hear about the first call... Starting to think maybe they were mistaken about then paying the retainer. Or maybe they started to back track after I sent the email? I'd be very curious to see how yours goes too...

[Science_guy]

Any updates?  Thanks!