Arbitration and FIA Card Services

[bellessima]

Anyone being sued by FIA which may be BA

Offering Arbitration
Can anyone comment on this?
I am in Arizona

[AngelinaCatHub]

Be careful that in arbitration you do not sign any binding document. When are you planning to file? This will stop them in their tracks the minute you file. When are you due to arbitrate? More info would be helpful. 'Hub

[GoingDown]

You want to make sure that it is PRIVATE ARBITRATION, and not the typical Maricopa County court ordered arbitration.

Private arbitration is through NAF http://www.adrforum.com/ or AAA http://www.adr.org/

There's another forum out there which has detailed information about this.

[treehugger1]

NAF was sued and is no longer available for most CC issues.

Here is a great thread from creditinfo. Post #25 is very informative and very, very current when it comes to JAMS.

I elected national arbitration a long time ago from two creditors. The CC representatives never replied. I never heard another word. from them.

If you defaulted on CC's several years ago, then the last arbitration clause before your account was closed will be the contractual clause. You want to read these carefully. The arbitration clauses have changed since the NAF suit.

http://www.creditinfocenter.com/forums/there-lawyer-house/310437-being-sued-citi-2.html

[GoingDown]

Oh! That's right! I got NAF confused with JAMS. JAMS http://www.jamsadr.com/ is the one to use.

There is also more info about using arbitration to fight off creditors and junk debt buyers here:

http://www.debtorboards.com/index.php/board,121.0.html?PHPSESSID=i170k33dtb7fjb772qgu89th03

Some people put a statement about invoking the arbitration clause in all of their DV letters and Cease and Desist letters, to help reduce the likelihood of being sued by debt collectors, because they fear arbitration's high costs.

If the lawsuit has already been filed, then you would need to make a motion to use private arbitration through JAMS.

[Bell30656]

If you do go to arbitration and mention that you are planning to file, they "impartial" arbitrator may suggest that you sign a settlement agreement. After all you are filing bankruptcy and it will be discharged. NEVER do this. Look at him like he is insane and tell him, you think not. I had two arbitrators suggest this.

[daytona]

If you have already been sued then you will have to file a motion to compel with the court you are sued in to remove the case from the court. (most likely stayed pending arbitration) be prepared for a dogfight to get it removed, but you should be able to. If you have NOT been sued, then you should be able to exercise the arbitration clause in the agreement to avoid court...but again there are a lot of factors, which agreement, when did you default, etc...and still be ready for a dogfight. There are detailed threads on other forums outlining the entire processs...be ready to read and study for hours... It does work though. As others stated, you don't want court ordered "mediation", you want private arbitration...

[keepsmiling]

If you "win" an arbitration.. or it's not pursued-- is there a 1099 issued?

[daytona]

If you "win" an arbitration.. or it's not pursued-- is there a 1099 issued?

It depends...most will issue, some won't. 1099 can also depends on wording of any "settlement"...and that is really what "arbitration" is all about, being a PITA for the other side and making them run a cost benefit analysis relative to what they think they can recover. You may be able to settle for 15-20% in lump sum....but there are a lot of factors.

[GoingDown]

1099s are mainly issued by the Original Creditors.

Junk Debt Buyers will often times not issue them. At least that has been my experience from having very old debts which should have triggered 1099s, but the JDBs did not issue them. The OCs on the other hand, did issue them.