PLEASE HELP! Arbitration (?) notice NCO Financial Options

[3y2l]

Hi everyone, I am a newbie here and have diligently been reading all I can but need some immediate help. I am so glad I found this site - the knowledge seems endless.

My mother, at her house not mine, received (by signed Fed Ex) package from NCO Portfolio Management and mailed to me. This is a surprise because we don't have much contact. In the package is an arbitration notice stating that an arbitration claim has been filed against me. I must file a response within 30 days or "an award may be entered against you." My options include: submit a written response to the claim, demand a hearing or participatory hearing, or other options (seek advice of an atty). and that this is recognized in court. The company is National Arbitration Forum (www.arb-forum.com). It also states that "judgement upon any arbitration award may be entered into any court having jurisdiction." Is also states "The results of this arbitration section is that, except as provided above, claims cannot be litigated in court, including some claims that could have been tried before a jury , as a class actions or as private general actions."

By the way, I am in Florida (SOL is 4 years). In 2001, I was in Georgia.

Background on this old account. It was originally an MBNA credit card. Experian lists "date of status" for MBNA as 10/2001. That is when it was charged off, I don't know when date of last activity is, if there is a difference. It was bought by NCO Financial in 1/2004. Their "date of status" on the report says 2/2004. Is that legal? There has been no activity since at least 2001. Before knowing about this board and the proper way of doing things, I disputed it in 5/2005 with Experian and it came back verified. Originally owed $3200 but it is over $6k with fees now.

1. Is this arbitration legal and binding or is it a scare tactic?

2. How should I handle this? What order? Validation first? Or is it too late since this has been in collection for years?

3. I assume I need to dispute all the old addresses (right and wrong ones?) on the report. How do I word that so they take them off?

I'm sure I have more questions but that is all I can think of at this point. Thank you SO MUCH!

[Googie]

[ingenue]

Hi everyone, I am a newbie here and have diligently been reading all I can but need some immediate help. I am so glad I found this site - the knowledge seems endless.

My mother, at her house not mine, received (by signed Fed Ex) package from NCO Portfolio Management and mailed to me. This is a surprise because we don't have much contact. In the package is an arbitration notice stating that an arbitration claim has been filed against me. I must file a response within 30 days or "an award may be entered against you." My options include: submit a written response to the claim, demand a hearing or participatory hearing, or other options (seek advice of an atty). and that this is recognized in court. The company is National Arbitration Forum (www.arb-forum.com). It also states that "judgement upon any arbitration award may be entered into any court having jurisdiction." Is also states "The results of this arbitration section is that, except as provided above, claims cannot be litigated in court, including some claims that could have been tried before a jury , as a class actions or as private general actions."

By the way, I am in Florida (SOL is 4 years). In 2001, I was in Georgia.

Background on this old account. It was originally an MBNA credit card. Experian lists "date of status" for MBNA as 10/2001. That is when it was charged off, I don't know when date of last activity is, if there is a difference. It was bought by NCO Financial in 1/2004. Their "date of status" on the report says 2/2004. Is that legal? There has been no activity since at least 2001. Before knowing about this board and the proper way of doing things, I disputed it in 5/2005 with Experian and it came back verified. Originally owed $3200 but it is over $6k with fees now.

1. Is this arbitration legal and binding or is it a scare tactic?

2. How should I handle this? What order? Validation first? Or is it too late since this has been in collection for years?

3. I assume I need to dispute all the old addresses (right and wrong ones?) on the report. How do I word that so they take them off?

I'm sure I have more questions but that is all I can think of at this point. Thank you SO MUCH!

Whether it is legal and binding or just a scare tactic, I wouldn't know how to check. However, if you had your cardmember agreement and addendums from when you had the account, you could check whether MBNA even included an arbitration clause at the time your account was active, and whether the arbitration provisions could pass to assignees (collectors).

If the account was charged off in 10/2001, the date of delinquency should have been before 10/2001, and was probably on or before 4/2001. Even if it had been exactly the chargeoff date of 10/2001, the SOL for open accounts (credit cards are under the description of "open accounts" as defined by TILA - Truth in Lending Act) is also 4 years in Georgia. Therefore, the SOL ran out no later than 10/2005.

To the best of my knowledge, arbitrators are required to adhere to applicable law when they render their decisions, so theoretically you can present the SOL defense in arbitration and have it work for you just as it should in court.

It might be a good idea to consult a lawyer on to decide how to respond. To make sure the attorney knows where you're going with an SOL defense, gather and bring your documentation including the NCO letter you received, some notes on the applicability of TILA and state SOLs, and your credit reports showing the NCO account is the MBNA account with chargeoff date 10/2001.

I don't think a standard validation letter to NCO could hurt.


Disclaimer: I'm not any kind of legal professional, and none of the contents of this post are legal advice. These are just my opinions. If you want legal advice, consult an attorney.

-ingenue

[GrimRepo]

To the best of my knowledge, arbitrators are required to adhere to applicable law when they render their decisions, so theoretically you can present the SOL defense in arbitration and have it work for you just as it should in court.

It might be a good idea to consult a lawyer on to decide how to respond. To make sure the attorney knows where you're going with an SOL defense, gather and bring your documentation including the NCO letter you received, some notes on the applicability of TILA and state SOLs, and your credit reports showing the NCO account is the MBNA account with chargeoff date 10/2001.

I don't think a standard validation letter to NCO could hurt.


Disclaimer: I'm not any kind of legal professional, and none of the contents of this post are legal advice. These are just my opinions. If you want legal advice, consult an attorney.

-ingenue

Nope. Arbitration is a lender paid kangaroo court that always finds in favor of the creditor. The arbitration proceeding would have to go to regular court to be converted to a judgement, and you might have a chance with showing time-barred debt there.

IANAL.

[3y2l]

Whoops, I just realized I made a mistake in my post - it was charged off on 10/2002 not 10/2001.

[IDare]

If it was CO in 10/02, you must be real close to the SOL on this sucker. An attorney I consulted on a similar issue a couple of years ago stated that the SOL can be used to bar arbitration the same as lawsuit. You may want to check with an attorney as well.

Meanwhile go to Why Chat's site and study the LETTER TO REFUSE ARBITRATION: http://whychat.5u.com/

There have been others here who've successfully fought arbitration. Try searching for thread titles containing the word arbitration.

And yes, send DV to the schmucks.

[3y2l]

I can't afford to consult an atty and don't have one I work with now. So should I send the refusal to arbitrate letter to the arb company and a validation letter to the collection agency? Didn't I read you have to validate when they first start collecting?? Before that, do I take personal info off report and id so, how?? Thanks so much!!

[IDare]

I can't afford to consult an atty and don't have one I work with now. So should I send the refusal to arbitrate letter to the arb company and a validation letter to the collection agency? Didn't I read you have to validate when they first start collecting?? Before that, do I take personal info off report and id so, how?? Thanks so much!!

You can DV at any time, but under the FDCPA the CA only has to cease collection activities until they validate if you dispute within 30 days after receiving their first letter. Go ahead and DV now. You need to establish that this is a disputed claim or they'll just steamroller you.

I think you send the refusal of arbitration letter to both the CA and the NAF, but I could be mistaken. Why Chat? Anyway, get that letter ready and be prepared to make one for each. You'll need to send them CMRRR.

Read thru Stetz's posts about dealing with the NAF: http://creditboards.com/forums/index.php?a...ult_type=topics

At this point you can't wait for personal info to get removed from your reports before taking these other steps. Read this about removing old addies: http://creditboards.com/forums/index.php?showtopic=105304&hl You can work on that simultaneously with the DV and refusal of arbitration, just don't try to wait for addresses to be removed FIRST because you don't have time right now.

[3y2l]

That's helpful information, thanks IDare (and others). How do I find out if I'm out of SOL?

[greenhair]

The NAF is a "life support system" for collectors. They are very biased in favor of the collectors. This is a situation just like having a CA or JDB file against you in court. They want and expect a default judgment. I received a similar notice from the NAF and I'm in Georgia. I had an attorney respond and he denied their claim, and claimed that if it was valid, it was out of SOL. You have to respond on their forms, which you can get on the NAF website.

Others here know more about this than I do, but my attorney's response worked and the claim was dismissed. What a relief! Good luck with this, and do NOT ignore it.

[3y2l]

Does anyone know (approximately) how much it would cost to have an atty handle this and any recommendations as to who?

[IDare]

Does anyone know (approximately) how much it would cost to have an atty handle this and any recommendations as to who?

Go to www.naca.net and use their find a lawyer search function.

To determine your SOL, you need to look at your state info either on Why Chat's site or in the Databases and Reference forum here. You'll need to know when was the last time you paid on the account before it was closed, and depending on your statutes you might need to know the last time you made charges on the account.

[3y2l]

How can I find out if I'm out of SOL if NCO is putting inaccurate info on report? I need to find out the last payment made.....any ideas?

[IDare]

How can I find out if I'm out of SOL if NCO is putting inaccurate info on report? I need to find out the last payment made.....any ideas?

Don't go by what NCO lists. Look at what MBNA is reporting. There should be a payment history key underneath MBNA's TL. Check for the 30, 60, 90 delinquency pattern that led directly to the CO. That might give you what you need to work with.

MBNA included an arbitration clause as an envelope stuffer in my MBNA accounts in 11/2001. My accounts were in default at the time however, so the arbitration clause couldn't be activated by me making additional charges on the account. You may be in a similar situation. Any chance you have the original statements stored somewhere?

[Shawnee]

If NCO is taking this action based on the MBNA arbitration clause, I certainly hope they have proof you agreed to arbitration. If they can't properly validate they have no business hauling you into that kangaroo court.

[3y2l]

No, I've moved out of the country and back and I doubt I hace an old statement. I'll check my old files just in case though. With the arbitration notice came the fine print from the MBNA credit card but I haven't combed it yet. It might be from the newer policies. It's a really bad copy they sent. Credit report says 150 days since 9/2002. How's that for close?

[IDare]

Uh oh... how long were you out of the country? Is the CA aware that you were out of the country for some time? Was your mail being forwarded to you, wherever you were?

[3y2l]

Why uh oh? No, I don't think it was known. I was out for a year but no forwarded mail. Well, maybe. I just checked the credit report and one of the old addresses lists the address. Regarding the arbitration clause as an envelope stuffer, doesn't it have to be a signed agreement when the credit card is opened? They can do that? If mine was 150 days in 9/2002, then it wasn't in default in 2001, like yours IDare. So, does it apply? When they sent the arb notice, they sent a credit card agreement with it but there is no date and it could be one from any year. My account was opened in 1994.

Is anyone familar/used Bud Hibbs to help? I can't afford it at all but I can't afford to lose either. He might be cheaper than an atty.

I really appreciate your help IDare (and everyone).

[3y2l]

Should the refusal to arbitrate letter on Why Chat's site be sent as is (minus the court part)? Should I add that there was no arbitration clause in the 1994 agreement or is that admitting evidence of an agreement?

[3y2l]

I just found out why you said that - stops the clock. Uh oh is right! I'm feeling doomed again.

[IDare]

You're not doomed by any means, but you need to be aware of things like this and do the best you can to keep it from dooming you. If they don't know you were out of the country, try darned hard to keep it that way. Don't let that slip.

Send the refusal of arbitration as is, don't cut parts out of it nor add things into it unless Why Chat says to.

You need to learn to make them PROVE every single thing they say. Don't accept anything just because it might be true. I'd take the position that there never WAS an arbitration agreement that you were a party to, and make them prove otherwise. Stand your ground!

They're looking for the default win. Prove to be anything but the easy prey they're after. Chin up and get those documents together.

[3y2l]

That's the problem. What documents? I don't have any.

[IDare]

That's the problem. What documents? I don't have any.

I meant the Refusal of Arbitration documents. Have you created those yet?

[IDare]

Also, have you sent DV to NCO yet?

I would, and I'd claim in there that they're a reporting newer-than-actual delinquency date on that account too. And CC it to the FTC.

[3y2l]

Yes, just finished the refusal document. Someone had posted that it has to be on their form but NAF website says it doesn't matter. I haven't sent validation yet. Can that be in the same package to CA? Both the CA and NAF are supposed to get a copy of the refusal. Go with the simple format for validation? I like the idea of CCing to FTC. Thanks again (I can't say it enough!)

[IDare]

Yes, just finished the refusal document. Someone had posted that it has to be on their form but NAF website says it doesn't matter. I haven't sent validation yet. Can that be in the same package to CA? Both the CA and NAF are supposed to get a copy of the refusal. Go with the simple format for validation? I like the idea of CCing to FTC. Thanks again (I can't say it enough!)

You can send the DV to NCO in the same package as the Refusal, but put them in 2 separate envelopes within 1 larger envelope. Keep the DV simple. Be sure to have a limited C&D in there, and add something like, "Note that the account upon which you're basing this claim is beyond the statute of limitations. It appears that this alleged debt has been reported by you using a newer than actual delinquency date on my credit reports, which would obviously be in violation of the law."

Send everything out CMRRR, keep copies of every paper they send and everything you send in reply, including your receipts and green cards. Keep reading and studying here, and stand tough.