Arbitration? Please HELP

[joeyb_05]

What is the name of your state? Florida

I'll make this as short as I can. I haven't paid MBNA bank since October of 2003. I owe $9,400. The debt was sold to a collection agency (columbia Credit Services). Out of fear of a lawsuit I offered them $1,000 up front and monthly payments of $200. They told me I needed $2,500 and 300/month to keep from going to arbitration. Not knowing what arbitration was and assuming a judgement we be found against me, I gave in to giving them $1,000. And, at the advice of friends I went to Consumer Credit Counseling Services of FL to handle the debt and negotiate payments. My thinking was if I had to go to court I would show some intention to pay the debt. Yesterday a gentleman knocked on my door handed me a National Arbitration Forum Claim and told me I had 30 days to respond. He did not even have me sign anything. Colubia Credit is seeking the original debt plus another $3000 in legal fees. They say that when I signed up for the credit card I was agreeing to arbitration. My questions are:
What do I do now? Should I seek a lawyer and if so what kind of lawyer (bankruptcy, general)? Is this just a scare tactic? If the arbitrator decides against me (and Im sure he/she will, being hired by the collection agency) will a court enforce it? Can I stop the arbitration? Will filling a lawsuit with the collection agency deter thier actions (the law suit would be in good faith although for minor infractions of the FCC Act)?
The truth is that I'm willing to pay the creditor what I owe but cannot meet thier demands. Any advice would be greatly appreciated.

Thanks,
Joe

 

[Ladynred]

You should respond with a refusal of arbitration letter. MBNA has the NAF it its hip pocket and you WILL lose any arbitration, the game is definitely fixed against the consumer. Courts have found that arbitration is illegal, unconscionable and unenforceable and there are cases against MBNA for it.

Here is some info on refusing arbitration:
http://community-2.webtv.net/YCHANGE/STORAGE/page17.html

And an arbitration case MBNA LOST:
http://www.atla.org/homepage/mbna.aspx
Judge Rules Mandatory Arbitration Clause Cannot Be Enforced
Myers v. MBNA America and North American Capitol Corporation

IF they still get an award, the award in and of itself is just so much TP. In order to collect, they would then have to take it to court to get a judgment.

If you're considering bankruptcy, then that would certainly stop their actions. Otherwise you'd need a consumer protection lawyer - try www.naca.net.