Re: Arbitration
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Posted by Drew
(24.59.27.46) on January 01, 2004 at 12:55:45:
In Reply to: Arbitration posted by Rod H on December 31, 2003 at 21:57:44:
You can reject Arbitration. Send them a certified letter, return reciept requested rejecting arbitration. Also send them a request for validation certified mail. If the contract specifies that they can charge you legal fees in their attempts to collect they can collect. I disagree with Earl's analysis. Many credit card companies will sue anyways because they want a judgment. Judgments can stick around for a long time in some states and even though you might not have money now, they can hold on it and collect it later when you get a good job, when you are trying to apply for that mortgage. If they decide to sell it, debt buyers will pay premium rates for judgments. They are more collectible than ordinary default accounts, chargeoffs. Whether or not you will get sued will depend on the companies policy and their attitude. Discover, Sears, MBNA, American Express sue on a regular basis. Discover will sue for $20. They don't care what assets you have. They want the judgment because it is more marketable to debt buyers, it sticks around a lot longer and they can always try and collect later. I think you should worry. Get a good lawyer and try to find out ways to reject arbitration since anyone who goes to arbitration always loses. Debtors RARELY win in arbitration. After arbitration, they will convert the arbitration award to a judgment (new set of legal fees) and they will then come after whatever assets you have. You should never ignore them. Get a lawyer. Ask him about contracts of adhesions and if they can be enforced. Reject arbitration. Insist on a jurty trial.
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