What is Arbitration anyways?
Arbitration is a way for the average consumer to resolve their issues with a company without the need for an attorney. Stepping into a courtroom can be very scary for some people and intimidating, Arbitration is a private mediation service. it’s very informal. Most creditors have Arbitration in their credit card agreements. You can find a data base of those agreements on the CFPB website using this link https://www.consumerfinance.gov/credit-cards/agreements
The other option when you have an issue with a creditor like Discover bank or American Express is to file you complaint in small claims court. Both require a small fee but I feel Arbitration is a much simpler and effective method for handling the matter.
Why do we use Arbitration in these situations?
Let’s face it. When you call in to talk to any of these companies it feels like no one is really listening or cares about your specific situation. They are trained to give you just a couple of options which typically serves their interest before it serves you. I mean sometimes you meet someone who really cares but they are limited in what they can offer you as a remedy, In these situations you must follow their “dispute resolution” clause in the credit card agreement. it’s usually found towards the end of the contract. You are often required to first send a notice to a specific address and you as the consumer agree to give the creditor or bank a certain amount of time like 30 days or 60 days depending on the creditor. You must read the agreement. You must follow these steps in order to play by the rules.
Where does it apply?
This process of Arbitration applies for more products and services than you might realize. There is an Arbitration provision in gym memberships, short term rentals, storage facilities, solar contracts, etc, etc. Usually when you have to sign a contract or click on the little box that says “Yes, I agree to these terms and conditions”… there is usually an option to resolve your issues using Arbitration. You can use this to help fix your own credit when it’s applicable. These creditors don’t play by the rules, nor do the credit bureaus who issue these reports to FICO which 90% of lenders are going to use to determine your credit worthiness. You may be surprised to learn that you can also use Arbitration in your Auto Sales so for example if your car was repossessed and you were unfairly treated then you have the right to take it to ARBITRATION as most retail sales contract include it.
What if I can’t solve this on my own?
In case you are in a jam and don’t see a way out of the situation and you need support we are proficient in these matters and can consult with you. In most cases you can find a remedy on your own but if you cannot then reach out to our team and schedule a consultation. Call us toll free at 877-590-2346 or fill out the questionnaire and a specialist will you soon to discuss. Good Luck!
Where can I take my case to Arbitration?
The most two common places you can file an arbitration case is with the American arbitration Association their website is www.adr.org or J.A.M.S. which stands for Judicial Arbitration & Mediation Services. Their website is www.jamsadr.com
