Question about Arbitration
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Posted by TexasGirl
(63.246.187.248) on March 21, 2004 at 21:08:15:
I stopped paying on my two credit cards in September 2003. One of the accounts ($8500 – I’ve had the account active for 2 ½ years) recently went to collections, and I since have received a letter from the collection agency stating that my original contract with Bank One had an Arbitration clause. And that Bank One may file an Arbitration Claim against me to get their money. But it’s funny, the last letter from Bank One stated that they plan to charge off the debt and sell or transfer the account to an outside collection agency. Does this mean that they wouldn’t take me to court, at least not right way, but want to see if a third party (arbitrator) can get me to settle or pay in full. I can’t make the minimum payments – any payment, at that, and I certainly don’t have enough to settle even for 20% of the account. I’m also thinking that the Arbitration threat could insulate them from producing proof of Validation of Debt. If I request Validation, they could simply not send me Validation, and, as I understand it, my only recourse would be to take it to Arbitration (the original credit card agreement states that any disputes between the two parties needs to go to Arbitration.) And I’ve heard that it’s a lot more expensive for a consumer to take something to Arbitration, and that the creditor/CA wins 99% of the time. So, my question is: Does Arbitration against the consumer happen often, or do you think they are just trying to bluff me? And has a CA used Arbitration to discourage the consumer from not seeking legal remedy when they (CA) don’t validate a debt. Thanks for your input.
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