Expert: Jason Shear, Esq. - 6/17/2009

Question

Hi, I hope you can help.  I received notification of arbitration for an old credit card account I had back in college which from what I think is now owned by a debt buyer.  I called the clerk at my local courthouse and she said this has nothing to do with them, I will go before an arbitrator.  The collection agency lawyer is claiming I owe over $9,000 when I know the original amount from six years ago was nowhere close to that amount.  I'm concerned, I just bought a house and I worry they can put a lien on it and garnish my wages where I work.  No one at the court could give me infomation.  What can I do to fight this?  I live in upstate New York.  Thank you for your time!

Answer
Good question.  Some buyers of credit card debt are using arbitration as a means to collect consumer debts.

With regards to your concern regarding wage garnishment and having a lien put on your home, an arbitration award is not an enforceable judgment on the debt.  The collection agency can not use the arbitration award to seize property or institute wage garnishment.  Instead, the debt buyer must go to court to "confirm" the award, at which point the Court enters a judgment that can be enforced like any other judgment in a civil action.  This allows the attorney for the collection agency to garnish wages, place liens on property, and conduct a debtor's examination.

New York courts have laid out the requirements that should be met before a court can confirm an NAF award.  However, to spell out those requirements and to explain how to fight a consumer credit transaction sent to arbitration would be the equivalent of typing out a chapter from a book.  Please give me call me directly and I would be happy to assist you in this matter.

Jason Shear, Esq.
Attorney at Law
Admitted in NY & NJ
(716) 566-8988


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