How to Beat Arbitration for Credit Card Debts

In you are subject to "forced arbitration" in a credit card dispute, this means that you give up your right to go to court. This is harmful for consumers who are victims of fraud and predatory lending. Chances are if you own a credit card issued by a major bank, you're subject to a mandatory arbitration clause. Few people know about the mandatory arbitration clause buried in the fine print of their credit card agreements. In arbitration there's a judge, jury, or right to appeal, making arbitration agreements binding. Avoid arbitration if you can.

Instructions

1

Contact your credit card company and ask if there's a mandatory arbitration clause in your credit card agreement. Request a copy. You should be able to find information about arbitration under the dispute resolution section of the agreement. Understanding your right to dispute prepares you for how to proceed to resolve your credit card debt.

2

Work out a settlement agreement with your credit card company if the debt is legitimately yours. If the charges were unauthorized and you are a victim of fraud, you should be able to have those charges reversed. Debt negotiation with your credit card company is going to take finesse on your part, particularly if you have fallen way behind in your payments. Your credit card company may be willing to settle your debt for a fraction of what you owe, but chances are you may have to make a lump sum payment. If you can't afford to make a lump sum payment, establish an affordable payment schedule.

3

Obtain a copy of your repayment plan agreement and stick to it. If for some reason you cannot make a scheduled payment, contact your card lender immediately. Apprise the credit card company of any changes in your financial situation that will hinder you from making timely payments.