What Happens After Credit Card Arbitration?
If you always pay your credit card bills on time and in the required amount, you are unlikely to face credit card arbitration. If you are in default, however, a clause in most credit card contracts enforces arbitration, rather than legal redress, and usually results in an arbitration judgment.
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Credit Card Arbitration
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Credit card arbitration is an extra-legal proceeding between you, your credit card company and an arbitration firm designed to resolve a financial dispute and reach an arbitration judgment, according to a CreditCard.com article, "Credit Card Arbitration."
Binding Mandatory Arbitration
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A provision in most credit card "fine print"--known as "Binding Mandatory Arbitration"--mandates arbitration rather than a court process.
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Arbitration Judgment
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An arbitration judgment is as binding as a legal procedure. Once final arbitration is reached, disputing or appealing the outcome is difficult, according to an article on "Credit Card Binding Arbitration" on CreditRatings.com.
After an Arbitration Judgment
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According to "Consumer Law," if you are found against, you must make payment of all debt to the credit card company, but how payment must be made can be negotiated with the credit card company. For assistance with arbitration and arbitration judgments, contact the American Arbitration Association (see Resources).
Your Rights After an Arbitration Judgment
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After an arbitration judgment, you still retain legal rights to all personal and real property that are considered exemptions and allowable by state law, according to "Consumer Law." You may also have rights under federal non-bankruptcy exemptions, if they are more advantageous than state provisions.
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