I recently hired a debt settlement co. to settle my accounts for me in my difficult time and MBNA sent my account to an Attorney network for arbitration? Are they trying to sue me or are they crying "wolf"
Arbitration is an alternative to a lawsuit. Some of the credit card companies now require you to agree to arbitration before they will issue you a credit card (it is in the fine print). It is supposed to be cheaper than a lawsuit. It is similar to a lawsuit in that you present your case to a disinterested party (an arbitrator instead of a Judge). It is supposed to save everyone time and trouble. Sometimes they get out of hand and everyone hires an attorney and does discovery and runs up expenses, just like a lawsuit. The arbitators decision is supposed to be final, like that of a Judge. Most of the time, a Judge will not overrule the decision of an arbitrator because the parties agreed ahead of time to resolve their disputes this way. It would not make sense to provide this shortcut to a lawsuit, only to have one of the parties file a lawsuit anyway. This is not to say you cannot sue, but if you did agree to the arbitration provision, you will have a tough time getting a Judge to entertain a lawsuit. Go back and look at you original agreement with the bank. See if it is there.
