Arbitration used in Credit Repair?

Arbitration in Credit Repair

Arbitration Used in Credit Repair

Here are the facts. Arbitration in Credit Repair has been gaining more attention recently because banks and Creditors are facing difficulties. However, it is very scary and annoying for some people to involve a lawyer. Similarly, Arbitration is a private mediation service that is “Non-Judicial” with no lawyer or judge involved. So there is also no trial. 

The process of Arbitration is very informal. For instance, most creditors have Arbitration in their credit card agreements. You can find a database of most creditor agreements on the C.F.P.B. website using this link On the other hand, the other possible option is to file a complaint in small claims when having an issue with a creditor. You will need a small filing fee for both. Although, it feels like Arbitration over small claims is a more impactful method.

Why do people use Arbitration in Credit Repair?

Let’s face it. Dealing with credit bureaus in an older manner can be difficult and frustrating. Therefore, it is best to deal directly with the banks and creditors. The consumer does not bother calling customer service in case of a problem. When you call in to talk to any of these companies, it feels like no one is listening. It looks like no one cares about your situation. People get training in customer service to share a few options with you. Moreover, these options only serve the company’s interest.

 A customer service representative has a certain limit about what they can offer you as a solution. In these situations, following the “dispute resolution” steps written in the credit card agreement is best. On the other hand, the consumer can write the creditor a letter and send it by certified mail. Wait a couple of weeks to hear back from an attorney. It is possible that an agent with more authority can contact to handle the situation.

The consumer requires to send their disputes to a specific address. Also, you agree in the contract to give the creditor a certain amount of time to resolve the complaint. The duration is typically 30 to 60 days depending on the creditor. The consumer should read the card agreement first to avoid risks. You must follow the steps outlined in the card agreement. Every card agreement is different.

Where does it apply?

Consumers can use Arbitration to resolve their issues. Arbitration is useful for many different products and services. You need to read the contracts carefully. You can use this to help fix your credit scores whenever possible. Finding mistakes on your credit report is the first place to look. These creditors don’t play by the rules, nor do the credit bureaus. 

Creditors can issue credit reports to FICO, which 90% of lenders will use to determine your creditworthiness. Using arbitration levels will show you more results. It is a major inconvenience for creditors. The fees alone will make you think twice as it’s an expensive method. You can also use Arbitration with auto sales which will motivate you to learn. It is similar to getting a repossessed car and not getting a prior notification. Or if you feel unfair treatment, you have the right to take your complaint to Arbitration.

Where can I take my case for Arbitration?

The two most common places to file an arbitration case are with the American Arbitration Association; their website is The other one is J.A.M.S. which stands for Judicial Arbitration & Mediation Services. Their website is 

You can find the blank forms for filing your case on the websites. Fill out the form and then submit a copy of the agreement you have with the bank or company. Pay the filing fee as well if that’s applicable. Then the process begins.

What if I can’t solve this on my own?

If you have an issue you need help with, please Call us toll-free at 877-590-2346. You can also schedule a consultation with our team. They can certainly offer you some assistance or advice. You do not need to pay for this service unless you decide to work together. Here’s the link to schedule a consultation: 

Best of luck!


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