Credit Card Debt Arbitration

Surprises abound when exploring credit card debt arbitration and they are not always pleasant ones. An inquiry into these matters can be both instructive and sobering. In fact, the deeper one's investigation proceeds, the less one is inclined to follow the course of credit card arbitration. At times, the process seems to contradict the very concepts inherent in arbitration. Rather than meeting on an equal footing with a neutral facilitator intent on finding the best solution for both debtor and creditor, a person may soon begin to realize that he or she is instead rowing against hostile currents above a raging waterfall. Far from finding an equitable solution via credit card arbitration, a customer is reduced to hoping to avoid being swept over the falls in a maelstrom of legal proceedings and further indebtedness.

Arbitration may be ordered by a court or entered into voluntarily. Sometimes it may seem that a customer can find himself in such proceedings almost involuntarily. Almost, that is, because he or she may find that the very terms which cause such feelings of indignation were spelled out in the agreement that was accepted when signing on to open the account. It is true that few people read their entire credit card agreement before becoming a customer. Seldom can one make it through the parsed terms and fine print before giving up in frustration. Also, if a person is the type who pays bills on time and doesn't anticipate any trouble with the account, he may believe that there is no necessity to worry about the details of credit card debt arbitration.

A person may be diligent in paying bills and organizing his personal finances, but still come to require the avenue of credit card arbitration. This may be brought on through no fault or negligence on one's own part. An unexpected job layoff or health crisis can hamper timely payments. Shoddy merchandise shipped by an unscrupulous company can necessitate redress. Identity theft is also a concern. In these cases, some method of negotiating a settlement is in order.

The first course of action in credit card debt arbitration is to follow the procedure outlined on the monthly credit card statement regarding a summary of billing rights. Usually, there is a time limit imposed on questioning the bill's accuracy. Phone calls may be made to the customer service department to settle small questions, such as ascertaining exact details of the merchandise charged to the account. Transactions may easily be forgotten in the course of the month and sometimes a phone call is all that is needed to clarify that a customer does indeed owe the stated amounts. However, it is wise to write to the customer service department to resolve other matters, for a phone call will often not be sufficient to preserve billing rights. Many companies have a clause in their card agreement which requires mandatory credit card arbitration for resolving disputes.

Although this mandatory credit card debt arbitration may seem to be a helpful clause which will eliminate needless court procedures, there are significant dangers to which one may be exposed. First of all, the fact that this arbitration is compulsory raises a red flag. If the right to a court proceeding evaporates, due process of law seems to have been violated. Secondly, who arranges for the arbitration proceedings? Whether the company or the consumer arranges for the arbitration, a very real possibility of conflict of interest seems to exist. Either way, it is likely that the consumer is the one who will lose money.

If one doesn't agree with the decisions made in credit card debt arbitration, there is little room left for the judgment to be overturned. This is especially true because both parties had agreed beforehand to abide by the verdict. Hiring a lawyer and beginning court procedures can be frustrating. Unless the debt outweighs the cost of legal proceedings, it seems foolish to devote time and money toward these efforts. Credit card companies almost certainly retain lawyers as a matter of course, and also are likely to have the necessary financial resources to see their way through lengthy legal maneuvering. If one was to initiate court proceedings, was willing to pay the costs in the area of finances and time, and even won the case, it is possible that one's credit rating could still be left in ruins.

Although legislation is sometimes proposed to attempt to correct these possibilities, and make void mandatory credit card arbitration, to expect quick results can seem like a losing battle because of the strength of lobbying elements financed by the industry. In the end, the most reasonable solution left is to chart a course which embraces personal responsibility. Read that fine print. Note the portions of the agreement in which the company is able to use their right to change rules midstream, such as in the areas of rates, fees, and special services like cash advances. If possible, the company will use these rights to their own advantage. Also, beware of teaser rates, which can entangle the unsuspecting in lengthy debt at inflated percentages.

In conclusion, there is great wisdom in the admonition found in Romans 13:8 -- Owe no man any thing, but to love one another; for he that loveth another hath fulfilled the law." Anyone would be prudent to conduct his or her affairs carefully, so that as much as possible, the very pitfall of debt itself is not a factor.

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