NAF - Arbitration, Things you should know Options

[IDare]

Since the threat of "arbitration" via the National Arbitration Forum (NAF) is a relatively common issue driving people to search for help here, I'm going to try to condense some notes, threads and other resources into a reference thread as a starting point of sorts.

The so-called "arbitration" process conducted by the NAF is supposed to be based on an agreement between you and the original creditor in relation to a defaulted debt. It's not to be confused with a court ordered arbitration which could occur if you are actually sued. In the event of court ordered arbitration you should head to the Help I've Been Served forum. The focus of this thread is on "private" or "quasi-judicial" arbitration forums, the most common of which discussed here is the NAF.

Consumer advocates and law professionals have long been expressing grave concern over the increasing trend towards ramming consumers through a "mandatory arbitration" process that is bewildering and may be patently unfair from the start. Some background:

Did Credit Card Companies Collude to Force Arbitration?

COMPULSORY ARBITRATION

Mandatory Arbitration Clauses Devastating Consumer Rights

Consumers Unwittingly Give Up Rights Through Binding Mandatory Arbitration (BMA) Clauses Tucked in Contracts

Groups Launch Nationwide Effort to Stop Use of Binding Mandatory Arbitration Clauses

Obviously there are a lot of problems with the concept of "binding mandatory arbitration" and plenty of reason for you to object to it. So what are your options?

For one thing, See Why Chat's site for information on REFUSING ARBITRATION: http://whychat.5u.com/

You may also CHALLENGE THE EXISTENCE OF AN ARBITRATION AGREEMENT IN THE FIRST PLACE. Read:
http://www.tlpj.org/briefs/strunk_opening_brief_071406.pdf

http://www.myfairdebt.com/forum/viewtopic.php?t=520

If they can't produce proper evidence that an arbitration agreement actually exists, the court can deny their claim. And once again, if you're dealing with a CA, you may have a claim against them instead.

Also bear in mind that if the SOL for legal action on the matter is expired, arbitration awards are time-barred too. REFUSE ARBITRATION IF IT'S PAST SOL. And you may be able to sue the CA for the FDCPA violations while you're at it.

If an arbitration award is snuck by you (we've had plenty of posts about this happening!) then you should OBJECT to it. See: http://fairdebtcollection.typepad.com/fair..._denies_pe.html

Also see: http://www.pennlawyer.com/ - scroll about halfway down, to the title The Debt Collector's Newest Best Friend - The Credit Card Arbitration Clause (Private Arbitration)

And note this recent court decision, which is extremely important if you're dealing with a CA who tries to use an arbitration clause you may (or may not) have had with the OC to evade liability under the FDCPA:

Karnette v. Wolpoff & Abramson - E.D. Va., 2006 August 02, 2006

And finally, take some time and search out threads of others here who've had to deal with arbitration. There are quite a few. Here's a recent one I remember: PLEASE HELP! Arbitration (?) notice NCO Financial

If you get hit with arbitration, study up and prepare to fight. It's not fun, but it's also not a hopeless situation by any means. Arbitration was what brought me here, and fortunately I was able to put a stop to it. The worst thing to do is to just roll over and let them win by default. Then you'll almost certainly end up with a judgment against you that can lead to whole new levels of misery. Educate yourself, and FIGHT!

[Googie]

[DCPenal]

[IDare]

Know thy enemy: National Arbitration Forum

If you find yourself threatened with mandatory arbitration, spend some time on their site and familiarize yourself with their "rules" section. It's the same as if you were sued - you need to understand the rules and how to use them.

Pay no mind to their propaganda - of course they present themselves as "impartial" and "professional" - they're not going to admit how obviously slanted this whole setup is to favor their clients in the credit and collections business.

The more you know the better chance you have of successfully defending yourself.

[Ocean]

Great Info..again, dug up by IDARE....

This should be a sticky!!!!!

[Jen23514]

ttt

[Melanie2009]

Excellent post!

[Jen23514]

Maybe I should have started a different thread, but since this was directly related to NAF, I wanted to post it here. While searching FDCPA cases in Kansas this evening I ran across this older case. It went to the Kansas Supreme Court. It was MBNA v Loretta K Credit (yes, that is her real name). We have known for years the connection between National Arbitration Forum and Wolpoff and Abramson.

This honorable court has now ruled that an Arbitration Award CANNOT be confirmed without showing a Arbitration Agreement between all parties involved. This is a landmark decision for consumers (at least in my state). See the ruling:

http://educationcenter2000.com/legal/MBNA_v_Credit_NAF.pdf

What do you think?



ETA: if you take note, Ms Credit was pro se

This post has been edited by Jen23514: Jan 14 2009, 10:39 PM

[Jen23514]

one more post tonight on this...

It appears a consumer tried to reference this Kansas case in MI against Abramson and it appears unsuccessful because he filed in federal court, and the ruling in Kansas was state. I fully admit I could be misreading, the link is below for you to read yourself.

http://www.reinsurancefocus.com/uploads/Myles.pdf