MBNA sent me to arbitration - help

Discussion in 'Credit Talk' started by vegasx, Aug 4, 2003.

  1. vegasx

    vegasx Member

    ecast settlement and
    wolpoff& abramson, LLP
    of rockville md
    recently sent me a claim that they had submitted to the
    National arbitration forum.
    I will paraphrase the claim:
    They basically state that they are attempting to collect an $8,000 debt for MBNA.
    They are also attempting to collect an additional $1206.8 in attorney fees.
    They attached an unsigned terms and conditions agreement and a generic 1 page computer printout of an account summary.
    The arbitration
    States that I have 2 options that must be done within 30 days of receipt.
    1. Submit a written response to the claim, and done so in compliane of the arbitrations forum code. If I fail to respond in 30 days an award will be entered against me in favor of the Claimant.
    2. Demand a Document hearing or Participatory Hearing
    Nice options, huh?
    I wrote them this in return (with the help of an attorney friend)

    Respondant states:

    The respondent, VEGASX, moves that the matter be dismissed due too lack of jurisdiction by the National Arbitration Forum. Respondent specifically states that the complaint filed herein fails to state a Prima Facie (on the face) case wherein the forum may assert jurisdiction over the respondent. Further, despite a simple conclusory claim of contact there exists no privity of contact between respondent and claimant. Respondent further states that he never agreed to nor entered into any contractual relationship whereby he waived his legal rights and agreed to submit to binding arbitration. Further that the determination of whether or not the respondent is subject to arbitration is a legal question that con only be determined by a court of competent jurisdiction, thus this matter must be dismissed. Respondent appears only to contest the jurisdiction of this forum and does not other wise appear, acquiesce in to or submit to the jurisdiction of this forum.
  2. vegasx

    vegasx Member


    30 days later the arbitration firm has not contacted me again, but I have been sent to arbitration again from the same law firm to the same national arbitration firm.
    My question is what is the best way to proceed with this mess.


  3. debtchoked

    debtchoked Well-Known Member

    I'm not attorney, but I can feel for you because I went through the exact same nightmare last summer with W & A, the National Arbitration Foundation, and 2 different MBNA accounts.

    After being scared to death, I was able to reach a payment agreement with W & A for each account. They settled for full amount minus the attorney fees. They refused to go any lower and they also are adding 10% monthly.

    I read everything I could about W & A. From what I understand, they are the nastiest of the nasty CA's. There are several threads on this forum about them.

    My best advice to you is to set up a payment plan and pay them monthly. Whatever you do, don't default on your agreement with them!!

    By the way, the messy entries from MBNA will probably stay on your bureau reports. As long as you make nice with them, W & A won't report anything, but MBNA is still on both mine and my husband's reports and we've been paying W & A regularly for over a year and disputing with the CRA's for the same period of time.

  4. ms6073

    ms6073 Well-Known Member

    Seems to me that W&A have yet to prove why/how you are bound to adhere to the demand for arbitration. I think you need another well worded reply that again requires W&A to prove a legally binding contract or clause the allows them to pursue relief via arbitration. I other words, you need to consult your lawyer friend again!


    GEORGE Well-Known Member

    I "THINK" just about all the credit card companies sent out MANDATORY "ARBITRATION" NOTICES..."IF" you opted out...they would just close the account...just like when you get "JACKED" you can keep paying at the current terms...UNTIL PAID IN FULL...(but they CLOSE the account IMMEDIATELY)
  6. ms6073

    ms6073 Well-Known Member

    Something else to consider in a legal context - the higher courts, including the Supreme court, have recently handed down some decissions that basically assert that the arbitration process (as in this process) unduly favors the plaintiff and have struck down rulings from abritrators! Also, apparently the NAF is partially funded by MBNA, which would definitely raise questions in my book! Another consideration is the fact that unless the arbitration was ordered by a court of law it may well have no validity unless it is later adjucated in a court of law.

  7. vegasx

    vegasx Member

    Thanks for your replies.

    I do not see how they can legally move forward with this.
    I plan on just reasserting my inital point that they have no grounds to force me to submit to arbitration.
    and that they must dismiss the claim

    GEORGE Well-Known Member

    Re: Re: MBNA sent me to arbitration - help

    "IF" you have no way to "OPT-OUT" except by CLOSING the account...IT SOUNDS LIKE IT IS ALWAYS IN FAVOR OF MBNA...YOU CAN'T WIN!!!
  9. DebtMeistr

    DebtMeistr New Member

    Re: Re: MBNA sent me to arbitration - help

    So how did it go? I am now in the same boat you're in with MBNA/W&A. W&A sent sent me a $8k+fee's NAF claim with a copy of a generic unsigned credit agreement and a screen printout. They previously failed to validate the debt. I would like some more feedback on your situation before I decide to respond to W&A's claim.

    respond email me if you can...
    thank you.
  10. keepmine

    keepmine Well-Known Member

  11. thetruth

    thetruth Member

    MBNA and Wolpoff & Abramson are going to owe a lot of consumers a lot of money before it is all said and done. Why anyone would pay money to Wolpoff & Abramson is beyond me.

    That Montana case should comfort anyone scared of W & A. But you do have to do a little work on your own.
  12. debtchoked

    debtchoked Well-Known Member

    I've asked this question on another post, but I haven't received any feedback.

    What about someone (ME!) who's already been paying W & A for over a year?

    I'm not looking for anyone else to tell me how stupid I was for cowering down to them and for giving them one year's worth of check numbers for 2 different accounts. I would not handle things the same way now, but you have to understand how completely scared I was when I began receiving VERY LEGAL sounding and looking packages from them and the NAF through FedEx.

    My year's worth of check numbers is up in September. They have one more check number from me for each account. Of course the accounts are no where near paid off ($4k or so and $6k or so).

    Is there anything I can do at this point or am I basically screwed?? Closing my checking account isn't a very viable option as mine and my hubby's checks are automatically deposited in the account, our mortgage is through the same bank and our mortgage payments are auto withdrawn from the account, we have several other payments auto withdrawn from the account, etc. etc.

    Again, please don't focus on how stupid I was one year ago. I KNOW THAT NOW!!!! What I'm looking for is some feedback on whether or not I can do anything at this point.

  13. raven

    raven Member

    I'm going through the same thing you are. But I'm doing nothing because there is nothing I can do at this point. I never even heard of arb till I got this letter from W & A via Airborne. I was so scared I was shaking like a leaf. I got another one in June for another MBNA acct. I just got a letter from NAF last week saying W & A won an award against me. However, they are not in my state,so the award doesn't mean squat until they sue me and get a judgement in this jurisdiction. I'm not too worried about the bank accounts because I left very little money in them. The rest I put in my son's name.
  14. debtchoked

    debtchoked Well-Known Member

    I know what you mean about "shaking like a leaf." I was there. I also have 2 different MBNA accounts. My mess was going on with both accounts at basically the same time, so I was getting hit hard. From all I've read, W & A is about as nasty as they come.

    I've been chastised many times on this site for all the mistakes I made in handling this situation. There's not a thing I can do about it now. No one has really given me any advice on how I might be able to handle things now. I guess I'm too far gone with these 2 accounts. Since I am able to maintain the monthly payments, I guess I don't have much choice but to continue.

    I can say that I've received some excellent advice on this site about other matters. I'm very slowly seeing things drop off my credit report. I'm not sure where my scores are at this time. I plan to pull them when I get the money at the end of September. I'm working on both mine and my hubby's reports, so everything is twice as expensive.

    Hang in there. Maybe you'll have better luck than I did.

  15. raven

    raven Member

    I'm kind of getting hit at the same time also. They won this award, and they will win the other, no doubt about it. I'm just waiting for the other shoe to drop. With all the late & over the limit fees plus the lawyer fee, the amount is over $1500. more than what I owed originally. There is no way I can pay that much.So, I'll probably get sued & there's not much I can do about it.
  16. Nestea

    Nestea Well-Known Member

    first of all, you CAN stop W&A from making future withdrawals without closing the account.

    simply write a letter (certified mail) as well as bring in or fax a copy to them telling them that you do not authorize any further withdrawals.
  17. vegasx

    vegasx Member

    Re: MBNA and Wolpoff & Assosciates.

    The NAF has sent me a letter stating that they are moving forward with the arbitration process.
    They have completely ignored the fact that they do not have legal authority to do this.
    They are not a court of competent jurisdiction so if they award a judgement against me for W&A I will simply take them to court.
    I have W&A on multiple violations of the FCRA and FDCPA.
    I will fight this as hard as I can, I am not going to roll over.
    I have a very compatent lawyer as a very good friend who is well versed in IRS and consumer issues.
    I will keep the thread posted when any new developments arise.
    Wish me luck!
  18. debtchoked

    debtchoked Well-Known Member

    I wish you TONS of luck and I give you so much credit.

    I just don't have the time, the energy, the money, or the you-know-whats to fight them.

    I hope you nail the jerks!!! Please keep us all posted.
  19. raven

    raven Member

    I wish you the very, very best of luck. You have more guts than I do. i wouldn't know how to start going about fighting them. Please keep us posted on your progress.
  20. Hedwig

    Hedwig Well-Known Member

    Besides notifying W&A that you are not authorizing any further withdrawals, you can also go to your bank and fill out whatever paperwork is needed to stop their debits. The bank can refuse to honor them, just as they can refuse to honor a check when you have stopped payment.

    Then you'll have to go back and fight W&A in court. I'd get an attorney to draft or help you draft a letter to them telling them that you were not fully aware of your rights when you began the payments, but you have since become knowledgeable of facts which make you believe that their actions are not within the law. The attorney will know how to word it. I'm not at attorney.

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