Arbitration Clause in Credit Card Agreement-Enfrorceable?
Posted: Tue Mar 01, 2005 3:03 pm
Are the members aware that MBNA (and probably others) are putting
mandatory arbitration clauses in the credit card agreements? Of
course, no consumer ever reads the agreements and thus is unaware
this clause. (This is not a bankruptcy issue per se but members
should know about it).
A client came to me regarding the following: he had an MBNA account
in default; he received by mail a summons to answer a complaint
before the "National Arbitration Forum;" the document stated that
the consumer had signed a mandatory arbitration clause and the
matter was going to be heard by this Forum; consumer answered,
challenged jurisdication, stating they did not know of the mandatory
arbitration clause, and generally denying liability. The matter was
heard as an "non-participatory" hearing by an appointed Arbitrator,
which resulted in an award in favor of the Arbitrator.
(Incidentally, the notice periods in this Forum were only 10 days
and the fees to answer and participate in the matter were $700).
My main question: has anyone seen this fact situation and has the
creditor succeeded in having the arbitration award entered as a
Judgment in the courts of the State of California? OR, can the
request to enter the judgment be defeated?
Any information and opinion will be appreciated.
Mike Candiotti
The post was migrated from Yahoo.