Legal Question in Credit and Debt Law in Utah

Debt Arbitration???

I recently heard about companies offering services to assist me in filing for Debt Arbitration against the Credit Card Companies utilizing the Unfair Debt Collections Act of 1996. Is this a viable alternative to Bankruptcy? My credit is very good except for the fact that I am carrying over $50,000 in unsecured credit card debt and I would like to clear this up as quickly as possible without filing for bankruptcy. Is there a way I can do this arbitration on my own, would a law firm be better equiped to assist me, or is the arbitration firm (as they make themselves out to be) capable of quality negotiations? How will this affect my credit in the short and long term and what lengths are these terms? Please help!


Asked on 9/21/02, 10:20 am

1 Answer from Attorneys
Alvin Lundgren Alvin R. Lundgren, L.C.

Re: Debt Arbitration???

Sounds like a rip off to me. The FDCPA regulates collection agencies, not credit card companies. A credit card company would have to declare you in default and refer your account to a collection agency. Then the collection agency would have to violate the FDCPA before someone could "negotiate" on your behalf. The negotiator is probably practicing law without a license and is likely in violation of the law herself. Obviously your credit would be damaged before they could "negotiate."

Your best bet would be to work with a consumer credit agency to reduce your debt and control your budget. There are a number of these, the non-profit agencies are a good place to start.

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Answered on 9/21/02, 10:53 am


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