Debt Arbitration Training
A debt arbitrator acts as an impartial third party to resolve disputes when borrowers and lenders have disagreements over the terms of credit agreements. Because of the prevalence of mandatory arbitration clauses in consumer credit contracts, the need has arisen for more qualified debt arbitrators. If you desire to become a part of this growing career opportunity, consider the benefits of training.
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Benefits
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Debt arbitration training will give you the knowledge necessary to enter a career that is practically recession-proof. Borrowers and lenders often resort to debt arbitration to avoid paying hefty attorneys fees and court expenses. Debt arbitrators who choose to work independently can immediately begin working with very little overhead, since they are able to start by just using a computer and telephone.
What to Look For
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To become a successful and reputable debt arbitrator, seek training that gives a complete overview of state and federal regulations that affect the credit industry. Subjects that should be covered include the Fair Debt Collection Practices Act, the Fair Credit Reporting Act and the Truth in Lending Act. When dealing with consumer credit, you'll also need to have a good grasp on the credit reporting system and credit underwriting guidelines. If you plan to work independently, you should look for a program that teaches advertising and marketing so you'll know how to find clients who need your help, and how to locate and communicate with the creditors and collection agencies they owe.
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Significance
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The Uniform Debt Management Services Act (UDMSA), enacted in 2005 encourages a uniform set of rules that govern debt arbitration services in the 50 states. Though some states still do not regulate debt arbitration, others have drafted some aspects of UDMSA into legislation. These states may require that debt arbitrators complete training or certification programs to continue offering debt settlement services in their jurisdiction. Debt settlement firms may be more inclined to hire individuals who already have experience or training as arbitrators.
Where to Get It
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Seek employment with credit counseling or debt settlement firms that include on-the-job training for debt arbitration. They may teach you their techniques or outsource your education to a company that does training of debt settlement professionals. If you'd like to seek training on your own, the International Association of Professional Debt Arbitrators (IAPDA), offers online training that results in certification. National Debt Consultants and the Legal Revenue service also offer training materials for debt arbitration.
Cost
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In 2010, the debt arbitrator training program offered by the IAPDA costs about $797. Training includes a free lifetime membership in the IAPDA and access to updated training in the form of continuing education, articles and other information. National Debt Consultants offers a set of training CDs and all of the forms and agreements you'll need to begin working as an independent debt arbitrator. In 2010, its training program costs $495. Training with the Legal Revenue Service costs $97 plus $10 shipping and handling. It includes a PDF of training materials plus a hard copy of it and software you'll receive in the mail.
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