Legal Question in Consumer Law in California

I have a credit card agreement dispute. I paid the arbitration service the first $50 per the agreement. However, the credit card company has not responded to any requests and the arbitration service wants me to paid an additional $750. This is the amount the credit card company should paid per the agreement, but they will not respond. The agreement indicates that the credit card company will pay the balance of the filing fee up to 1,500. The agreement says that all disputes must be settled in arbitration, but it also says I only pay the first $50. My question is how should I proceed - pay $750 more or go to civil court? If they do not pay the $750 can I take the case directly to civil court without going through arbitration.

Part of the actual agreement:

Location of Arbitration and Fees

Any participatory arbitration hearing that you attend will take place in a location that is reasonably convenient to you. On any Claim you file, you will pay the first $50 of the filing fee. At your request we will pay the remainder of the filing fee and any administrative or hearing fees charged by the Administrator on any Claim submitted by you in arbitration up to a maximum of $1,500. If you are required to pay any additional fees to the Administrator, we will consider a request by you to pay all or part of the additional fees; however, we shall not be obligated to pay any additional fees unless the arbitrator grants you an award. If the arbitrator grants an award in your favor, we will reimburse you for any additional fees paid or owed by you to the Administrator up to the amount of the fees that would have been charged if the original Claim had been for the amount of the actual award in your favor. The parties shall bear the expense of their respective attorney's fees, except as otherwise provided by law. If a statute gives you the right to recover any of these fees, or the fees paid to the Administrator, these statutory rights shall apply in the arbitration notwithstanding anything to the contrary contained herein. If the arbitrator issues an award in our favor, you will not be required to reimburse us for any fees we have previously paid to the Administrator or for which we are responsible


Asked on 3/30/12, 11:49 am

1 Answer from Attorneys
Harry Shulman Shulman Law

I would send them a certified letter requesting that they pay the additional amount. Make sure it is to the address specified in the "Notices" section of the agreement. You need proof that they received your request, and even if you sent an email, I think the certified letter would be helpful in proving this. If they STILL don't respond after receiving the letter, you have a variety of options, but I would say wait and see if they do anything before considering them.

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Answered on 3/30/12, 2:27 pm


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