Re: Arbitration

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Before you panic, you should know that there are an increasing
number of ways to fight back against these so-called and often
bogus "arbitration awards." Indeed, many arbitration
proceedings are completely insufficient regarding the proper
procedure for satisfying the court that is being petitioned to
enforce/confirm them. (Arbitration awards are not enforceable
without a court order.)

To take advantage of that insufficiency, though, you'll need
to point it out to the court.

A quick run-down of what the company who instigated the
arbitration award is required by law to provide the court with
is:

1. a copy of a binding arbitration agreement. (This is a
requirement of the Federal Arbitration Act)

This agreemment must show both that an agreement to arbitrate
was entered into and that it was specifically you who entered
into it.

Most often, credit card agreements (I'm assuming that this is
what you're arbitrating) do not include any signed written
agreement to arbitrate. Rather, there is a clause about
arbitration settling disputes within the generic contract, but
there is no dotted line that you signed on.

If the company can not prove there is a binding contract with
you to arbitrate the dispute, then the court must vacate
the "award."

(There are other ways to prove arbitration, including an
affidavit (sworn statement) from someone knowledgeable in the
company who can link you to the arbitration agreement, but
these are very clumsy and extremely unreliable.)

2. Some kind of proof that you were properly served -- i.e.
that you were given notice of both the arbitration hearing AND
of the award.

If there is no proof that you received the proper notice in
the proper way, of the hearing and/or the award, then you can
move the court to have the award vacated. (Dismissed)

3.Arbitration agreements are contracts and, as such, are
governed by state law, so long as that state law does not
conflict with federal law.

So, I'd suggest that you go poking around the arbitration
rules in your state's code of civil procedure -- i.e. the rule
books for how the legal system works, and your state's
statutes.

And, yes, someone who fails to abide by a court order to repay
a debt can have their wages garnished, their taxes seized
etc. But, if it it ever got to that point, you would be told
to attend a hearing in which you'd get an opportunity to
explain your financial circumstances, which the court would
then take into account before enforcing any such severe
measures, assuming that it enforces any.

The main thing in this instance is to make sure that you show
up for everything, respond to everything and give your side of
the story at all points of the process. Sometimes, simply
resisting these debt collectors is enough to shoo them onto
the next vitim, where the pickings are easier.

Good Luck.

On 8/29/07, Sally Bracken wrote:
> On 4/11/05, Amanda wrote:
>> I recently recieved an arbitration letter from Mann
>> Bracken. I prepared a refusal of arbitration and a request
>> for validation. My question is if they get the arbitration
>> and I still can't afford to pay what can they do? Please I
>> am very unfamillar with legal things tell me whatever you
>> know about this process and / or this company.
>
>
> They will garnish money from your check, put a lien on your
> home or repossess some of your goods!