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You are here: Experts > Business > Corporate Law > Arbitration/Mediation > arbitration award against me
Expert: Timmy Chou - 8/20/2008
Question
QUESTION: I just received a letter (summoned) from a debt collector about arbitration award against me in the superior court of the state of Arizona. The letter states that the CREDIT CARD LENDER obtained the award following an arbitration hearing administered through the National Arbitration Forum. The lender has filed and application to confirm arbitration award and for entry of judgement unless I file an opposition to the application within 20 days, exclusive of the day of service, judgment will be entered against me consistent with the arbitration award.
Truly, a owe the lender but I have not appeared in any hearing and do not know anything about National Arbitration forum.WHAT IS MY OPTIONS HERE? SHOULD I FILE AN OPPOSITION TO THE APPLICATION OR WAIT TILL 20 DAYS GO BY AND WORK WITH THE DEBT COLLECTOR? THE DEBT COLLECTOR IS CHARGING EXTREMELY HIGH INTEREST RATE AND FEES,I WILL BE IN DEBT FOR THE REST OF MY LIFE. THROUGH THE ARBITRATION CAN I GET FAIR RATE?
ANSWER: Thank you for your question.
As I always mention to questioners, mediators act as neutral third parties to disputes and never "get involved" in judging the merits of conflict, but merely use special techniques to help the parties decide how to negotiate their own settlement. The case you describe here is unfortunately very typical. I am not a lawyer, but I can respond to your question from my business consulting experience. Note that this issue may develop legal implications and you may wish to consult an attorney.
Unfortunately this collection "scam" is working its way across the country and you have been caught up in it.
Please see the following sites:
http://cbs5.com/wrapper_consumer/seenon/credit.cards.arbitration.2.762532.html
and:
http://budhibbs.wordpress.com/national-arbitration-forum-attorneys-under-microsc...
and also please see this report:
http://www.citizen.org/documents/ArbitrationTrap.pdf
I think you you should file an opposition petition and try to slow down the process as best you can. Also write a letter and send it certified asserting that you were never notified of any hearing in the first place.
Since you owe the money, you are going to have to deal with this unless you are willing to file bankruptcy.
I would contact the AZ attorneys general and the AZ consumer protection office and see if there is some scrutiny of this highly unfair practice going on in AZ. If not, you may be stuck with things as they are.
Copy any letters to your state's consumer protection office, your attorney (if you have one), the AZ Attorney General, and the Federal Trade Commission. Be sure to have the copied groups listed at the end of your letter.
There is some pending legislation that will likely make these practices illegal, but for now you will have to fight your way through it.
Good Luck!
---------- FOLLOW-UP ----------
QUESTION: where should I file an opposition petition? Is there an application online to download? who should I send it to?
ANOTHER QUESTION: For past two year I have enrolled with a debt solution company, transfer my power of attorney to them, paid fees. they negotiate on my behave and so that I can pay my credit card dept. I gave them everything on my credit report. I just found out that this particular credit card was not and still not on my credit report so it didn't enrolled with them. I remember having credit card with the lender. SHOULD I USE THIS REASON TO FIGHT THE ARBITRATION AWARD AGAINST ME? I am not saying I will not pay. I will love to start making payment if they make it more affordable.I have paid MOST OF MY CREDIT CARD THROUGH THIS ENROLLMENT AND PLANNING TO DO THE SAME FOR THIS CREDIT CARD. I WILL LIKE TO SETTLE MY DEBT BUT CAN NOT DO THAT WITH THE HIGH INTEREST RATE AND FEES THIS DEBT COLLECTOR IS CHARGING ME. Original $7000 is now $13,000 and now with 25% interest rate.
Answer
You will have to try to contact the court where the judgment was entered and figure out the options to appeal or challenge. This is different in every state, sorry I am not acquainted with the AZ system.
You can call your debt consultant and see if they have some ability to help you. I would suggest that at this point you have very few options. The collector has a judgment and if this judgment is perfected they have zero reason to settle with you, aside from you offering a lump sum payment or you will just file bankruptcy. No is likely to care if the interest rate is too high or your situation does not accommodate a payment plan. You have limited ability to argue this since you admit that the card is yours and the debt is yours. Whether the card appears in your credit file does not matter.
With a judgment your wages can be garnished or your assets seized. You must do all you can to try to get in front of this in the court system.
Good luck!
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