I need help with an arbitration award that I received

[semaljs1]

Hello,

I am in debt with MBNA since 2003. The account was opened in 2003 from New York City, where I reside. My balance to date is $5,331.43, that I do not have. I received a letter that says: "As you are aware, your delinquent account was submitted for binding arbitration and an arbitrator has issued an award against you. This amount is due and owing. We are providing you with an opportunity to contact our office in order to resolve this matter. Please note that in the event this Arbitration Award remain unpaid, our client has requested that we evaluate your account for judicial enforcement under state law."

I do not understand this letter and what could happen to me if I do not pay immediately. Could they cease my assets? Would I go to jail for not paying?

Thank you!

 

[weenor]

Hello,

I am in debt with MBNA since 2003. The account was opened in 2003 from New York City, where I reside. My balance to date is $5,331.43, that I do not have. I received a letter that says: "As you are aware, your delinquent account was submitted for binding arbitration and an arbitrator has issued an award against you. This amount is due and owing. We are providing you with an opportunity to contact our office in order to resolve this matter. Please note that in the event this Arbitration Award remain unpaid, our client has requested that we evaluate your account for judicial enforcement under state law."

I do not understand this letter and what could happen to me if I do not pay immediately. Could they cease my assets? Would I go to jail for not paying?

Thank you!

The good news is that they cannot put in jail.

The bad news is that you have a judgment levied against you the same as if they had sued you in court. It is due and owing now and collecting interest as you type your post. If you do not make arrangments to pay, they can garnish your wage, attach to your bank account (freeze it), take your tax refund or seize nonexempt personal property.

 

[Ladynred]

No, there is no judgment, YET. They CAN however take that abritration award down to your local courthouse and have it confirmed into a legal judgment. Then and ONLY then can they do anything like garnish wages, sieze bank accounts or file liens against property. It is unlikely they'd be able to seize assets, the exemptions would likely protect most if not all of your stuff.

If you don't want a judgment against you, I would suggest you start negotiating. Without a judgment though, that arbitration award is worth the same as toilet paper !