What is an arbitration?

This is method of dispute resolution that happens outside the litigation or lawsuit process.

Read my Legal Guide "How to Arbitrate a Dispute"

http://www.avvo.com/legal-guides/ugc/how-to-arbitrate-a-dispute

Good luck.

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Buried somewhere in the financing agreement, there is probably an arbitration clause. Whether you knew it or not, you agreed that any dispute between you and the lender would be decided by a private judge/ arbitrator. You must be given procedural due process meaning you must be served with written notice of the arbitration and the rules you must follow to fight it. Generally, you will be told you breached the contract and must pay the full amount due along with interest and fees. If you don't pay after the arbitration award is issued, you can be sued to enforce the award.

Arbitration is not consumer friendly and very common in credit card agreements.

Arbitration is a process somewhere between going to court or having your case settled through a mediator. With mediation, you and the other side voluntarily submit your dispute to a mediator and only settle if both sides agree with what the mediator proposes. In court, the case is presented before a judge, or judge and jury, and a decision is made about your dispute. Similar to court, in arbitration, one or more arbitrators decide the dispute after testimony and documentary evidence is presented. However, arbitration is less formal than court. Arbitrations usually take place in a conference room instead of in a courthouse. Also, depending on the arbitration forum, the rules of evidence and civil procedure are often relaxed considerably.

You need to check your original agreement and see if there is an arbitration clause requiring you to go to arbitration. If there is, then you will likely have to submit to arbitration. If, on the other hand, the opposing party merely wants to go to arbitration but has no agreement forcing you to do so, then you are not required to go.

If the amount of money in dispute warrants it, I recommend you consult with an attorney who has practiced before the arbitration forum in question. Have him or her review your original agreement and seek his or her advice on how to proceed.