The so-called "arbitration" process conducted by the NAF is supposed to be based on an agreement between you and the original creditor in relation to a defaulted debt. It's not to be confused with a court ordered arbitration which could occur if you are actually sued. In the event of court ordered arbitration you should head to the Help I've Been Served forum. The focus of this thread is on "private" or "quasi-judicial" arbitration forums, the most common of which discussed here is the NAF.
Consumer advocates and law professionals have long been expressing grave concern over the increasing trend towards ramming consumers through a "mandatory arbitration" process that is bewildering and may be patently unfair from the start. Some background:
Did Credit Card Companies Collude to Force Arbitration?
COMPULSORY ARBITRATION
Mandatory Arbitration Clauses Devastating Consumer Rights
Consumers Unwittingly Give Up Rights Through Binding Mandatory Arbitration (BMA) Clauses Tucked in Contracts
Groups Launch Nationwide Effort to Stop Use of Binding Mandatory Arbitration Clauses
Obviously there are a lot of problems with the concept of "binding mandatory arbitration" and plenty of reason for you to object to it. So what are your options?
For one thing, See Why Chat's site for information on REFUSING ARBITRATION: http://whychat.5u.com/
You may also CHALLENGE THE EXISTENCE OF AN ARBITRATION AGREEMENT IN THE FIRST PLACE. Read:
http://www.tlpj.org/briefs/strunk_opening_brief_071406.pdf
http://www.myfairdebt.com/forum/viewtopic.php?t=520
If they can't produce proper evidence that an arbitration agreement actually exists, the court can deny their claim. And once again, if you're dealing with a CA, you may have a claim against them instead.
Also bear in mind that if the SOL for legal action on the matter is expired, arbitration awards are time-barred too. REFUSE ARBITRATION IF IT'S PAST SOL. And you may be able to sue the CA for the FDCPA violations while you're at it.
If an arbitration award is snuck by you (we've had plenty of posts about this happening!) then you should OBJECT to it. See: http://fairdebtcollection.typepad.com/fair..._denies_pe.html
Also see: http://www.pennlawyer.com/ - scroll about halfway down, to the title The Debt Collector's Newest Best Friend - The Credit Card Arbitration Clause (Private Arbitration)
And note this recent court decision, which is extremely important if you're dealing with a CA who tries to use an arbitration clause you may (or may not) have had with the OC to evade liability under the FDCPA:
Karnette v. Wolpoff & Abramson - E.D. Va., 2006 August 02, 2006
And finally, take some time and search out threads of others here who've had to deal with arbitration. There are quite a few. Here's a recent one I remember: PLEASE HELP! Arbitration (?) notice NCO Financial
If you get hit with arbitration, study up and prepare to fight. It's not fun, but it's also not a hopeless situation by any means. Arbitration was what brought me here, and fortunately I was able to put a stop to it. The worst thing to do is to just roll over and let them win by default. Then you'll almost certainly end up with a judgment against you that can lead to whole new levels of misery. Educate yourself, and FIGHT!
