Looks like more and more people are noticing that the National Arbitration Federation isn't the "impartial, fair" agency they claim to be: Consumerist - Minnesota Attorney General Punches National Arbitration Forum In The Face - Arbitration A Business Week article last year uncovered materials showing that NAF marketed its arbitration services to companies as more likely to collect on debts than litigation. Banks vs. Consumers (Guess Who Wins)
Arbitration has historically been almost impossible to beat. The only way I know of is to be on top of the situation right from the start, gathering evidence for a federal lawsuit against the attorneys even before it gets to NAF. Validation is the key and as usual must be sent immediately upon first contact by the attorney. If the attorney proceeds to arbitration without providing the demanded validation then he can be sued in federal court for illegal continued collection activity. If that don't deter them from arbitration the debtor will have a second chance when they send it to a local attorney to have it reduced to a judgment. By that time the debtor probably can't do anything about the award itself but should be able to get the local attorney to agree not to continue with his efforts to enforce the judgment. By the time they find another attorney their time limit to file the case may be over. If not then do the same thing to the next attorney until the 1 year statute of limitations is over and then present a SOL defense. Or just keep on suing attorneys until they can't find any more willing to take the case. If anyone has a better idea then please bring it on.
I have been up against two NAF claims. They will screw you for sure, and even if you know a lot they play by their rules and change the rules all the time. I have found the only way to win is definitely go for a participatory hearing which costs you $250 and then you may have a chance. I don't think most people can handle how much work fighting NAF is, way harder than going to *real court* as at least there they rules don't change. I hope that things go down on NAF and I am proud to say that I may have had just a little doing of this myself. )
I heard a report on it on the radio. A hedge fund owned both the arbitration agency and the collection company....
