Did you know that most credit cards include an arbitration clause in their agreement terms? While this may not sound like too big of a deal, it could actually be worse than you think. Part of an arbitration clause often stipulates that the credit card company gets to choose the person or company that will be conducting the arbitration. Translated, this means that there’s a good chance that the odds will be stacked against you. So how are you supposed to get a fair deal if arbitration becomes necessary?
Step #1: Don’t Ignore Your Mail
One of the first things you need to do is to make sure you read the mail sent to you by the arbitrator and that you respond to that mail right away. In many cases, the arbitrator will send correspondence to you through certified mail, which means he or she has a record of when it was received. Be sure to read the letter right away and to respond to it in a timely manner, as missing any deadlines that have been set can be quite problematic.
Step #2: Obtain a Credit Report
As soon as you find out that your case has gone into arbitration, you should obtain a copy of your credit report right away. If you haven’t already taken advantage of your ability to get a free copy of your report each year, you can get one by visiting AnnualCreditReport.com. If you have already used up your one annual freebie, you will need to pay to get a copy of your report. While this may be unpleasant, it really is important for you to have a copy so you can be clear on where you stand with respect to your credit.
Step #3: Correct Mistakes on Your Credit Report
If there are any errors on your credit report, you should contact the credit reporting bureau right away to get the mistakes corrected. It’s important to have the mistakes corrected before you actually go into arbitration, so don’t delay with this step, as the credit reporting bureaus are allowed to take up to 30 days to correct any mistakes.
Step #4: Learn About the Arbitrator
Start learning as much as you can about the arbitrator. Depending upon the terms that you agreed to, you may actually be able to object to the arbitrator. If this is the case, it is in your best interest to object to an arbitrator that specializes in “creditor’s rights,” as they will most certainly fight aggressively on the credit card company’s behalf.
Step #5: Hire a Lawyer if Necessary
Depending upon the specifics of your case, it may be a good idea to hire a lawyer to help you with your case. You will have to consider the amount of money you owe compared to the cost of hiring a lawyer in order to determine whether or not it is a worthwhile investment.
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