PART 2 | How To Win Your Debt Collection Lawsuit By Compelling Private Arbitration

TL;DR

Learn how to win your debt collection lawsuit by compelling private arbitration and shifting the burden onto the creditor to initiate the process.

Transcript

hey everybody john skiba here from the consumer warrior youtube channel and in this video i'm going to do a follow-up to a video i did previously on how to win your debt collection lawsuit by compelling private arbitration i heard a lot of comments uh from that video it's been very popular but a lot of people want to know okay if i file a motion to... Read More

Key Insights

• 🔒 Private arbitration can be a powerful tool for consumers in debt collection lawsuits, as it shifts the burden onto the creditor to initiate and pursue the process.
• 🔒 Debt collectors and creditors are generally not prepared for private arbitration and prefer the familiarity of the court system.
• 🔡 The high costs involved in private arbitration make it unattractive for debt collection cases, where the amounts in dispute are often relatively low.
• 🥹 By requiring the creditor to initiate private arbitration, defendants can hold them accountable and potentially get the case dismissed if they fail to do so.
• 🖤 It is essential to document all communication with the creditor and follow up with a motion to dismiss for lack of prosecution if they do not comply with the court's order.
• 💨 Private arbitration offers a faster and less formal resolution process compared to the court system.
• 😀 When facing a debt collection lawsuit, it is crucial to explore all available options, including compelling private arbitration, to protect your rights and challenge the creditor's claims.

Questions & Answers

Q: What is private arbitration, and how does it differ from the court process?

Private arbitration is a dispute resolution process conducted by a private company or arbitrator instead of a court. It offers a faster and more flexible resolution compared to the formal court process.

Q: Why do creditors and debt collectors generally oppose private arbitration for debt collection cases?

Debt collection cases are often low in value, and private arbitration is expensive for creditors due to filing fees and additional costs. It also disrupts their established systems designed for court litigation.

Q: Can I initiate the private arbitration process myself if the court grants my motion to compel?

It is not advisable to initiate private arbitration yourself if you are the defendant in a debt collection lawsuit. You should require the creditor or debt collector to initiate the process as they have a claim against you.

Q: What should I do if the creditor refuses to initiate private arbitration after the court order?

If the creditor fails to initiate private arbitration after the court's order, you should document your attempts to communicate with them in writing. Then, you can go back to the court and request a dismissal of the case for lack of prosecution.

Summary & Key Takeaways

• When sued by a debt collector, you can use an arbitration clause in the credit card terms and conditions to compel private arbitration instead of going through the court process.

• Creditors and debt collectors don't prefer private arbitration for debt collection cases due to the disruption it causes to their systems and the high costs involved.

• If you have successfully filed a motion to dismiss and compel private arbitration, you should ask the creditor to initiate the arbitration process and defend yourself if they refuse. If they fail to do so, you can request the court to dismiss the case for lack of prosecution.