Expert: Timmy Chou - 7/16/2009

Question
QUESTION: I successfully had a credit card arbitration vacated. "Judgment in favor of defendant." So, my question is, how does t effect my alleged debt? Is there a next step for the plaintiff?  It’s been a year and they did not appeal or file motions. Here in Maryland. Thank you.

ANSWER: Thanks for your question!  

Well your question is a bit convoluted I'm afraid.  As you may know, the structure of the relationship between the court system and arbitration systems varies widely across the country.  I cannot speak to Maryland's policies and procedures.

Your decision in most likely rendered in the arbitration system only.  Usually if there is a court-ordered or court-connected arbitration, there is also a procedure to have any ruling transferred into the court system to become a stipulated judgment, which is then enforceable as any other court judgment.  Once judgment is entered you would have the usual remedies at law to enforce its execution.  

However, often the arbitration stops at the arbiter's door and there is no formal way to enforce the ruling -- other than going back to court to get the court to enforce it.  

This is probably the case for you, since no one has picked up the ball, and it is likely there is no ball to pick up.  My guess is that you will now have to pick up the torch and begin to try to get action.  If you have had negative credit reporting in your file, you will have to try and get someone to act on removing it.  However, it is unlikely that anyone will care now that you do not represent a revenue source.  Therefore be prepared to have to go to court to enforce the action.  Try and get some action on your own first and see what happens.

Good Luck!



---------- FOLLOW-UP ----------

QUESTION: This was a National Arbitration Forum arbitration.  An award was entered in favor of the plaintiff and I got it vacated, though the court term is Judgment in favor of defendant.  My question is, is the debt, if any, canceled by the judgment in my favor?  It’s binding arbitration. Is the court’s decision also binding?

Answer
Nothing technically legal is ever accomplished by a mediation or arbitration.  Just because some mediator or arbiter issues a ruling that says "judgment in favor of so and so" does not matter officially in a legal sense.  If you had an original COURT judgment against you and then the arbitrated ruling was entered into COURT as a stipulated judgment (that can be referenced through the court clerk) than for sure your debt will be canceled, and credit reporting agencies will note this action in your credit file and remove the entry.  However, if this was not done through the court, then the credit agency will still have the debt listed against you in your file.  Showing them the arbitration ruling will do nothing.  You must then try to have either the debtor remove the entry or you must go to court to have the ruling officially entered as a court judgment.  

Hope this helps!  Feel free to follow up!