Help with credit problem?

Question

I had a credit card, I went through Consumer Credit and paid for a year, I couldn't afford monthly payments so I decided on debt settlement through another program. This credit card was turned over to a collection agency/attorney. I pay debt that is settlled and usually at half of the original amount when I have enough saved. This specific one I do not have the money for up front and the collection company will not settle for the amounts I propose to them through the debt settlement co. They have filed a claim with the National Arbitration Forum. I have to respond within 14 days to the forum with a response to the claim. I immediately signed up with Consumer Credit again, but it takes awhile for them to propose to the original creditor. I may know in about ten days whether the original creditor will reply and accept the proposal and then recall the account from the collection co but I don't know what to do about the response I have to file with National Arbitration Forum.

Answer 1

My answer depends on what state you're in....(I'm in NV)
Any cooperation between a company and a Consumer Credit program is completely at the company's discretion.
Consumer Credit really isn't doing anything you couldn't do yourself (except they may have more pull due to legislative issues...but just that - not a legal obligation for the company to accept payment terms) They can only ask creditors to accept "x" amount, and the answer is only yes or no. The Counselor can't do anything about it.
RESPOND TO THE FORUM! It's your only chance of ANY kind of settlement. Obviously, if they've turned it over to arbitration, you signed something authorizing this type of action (this is why you should always read the fine print)
The Arbitrator's decision is final, legal, & binding...no different than going before a judge.

Answer 2

The collection agency has filed in arbitration; whatever the outcome is, it is legally binding.

You most likely won't get them to withdraw the filing. But if by some miracle Consumer Credit is able to do something for you, BE SURE YOU GET A COPY OF THE WITHDRAWAL DOCUMENTS. Otherwise, you'll automatically lose if you don't respond to the filing.

On the document you received from arb, there should be a contact #. It should also specifically tell you if you have to appear or if you have to respond in writing. Whatever it says to do, DO IT.

Don't rely on anyone else to get you out of this mess. If the collection agency won't accept any of your proposed settlements, chances are, they won't withdraw the arb filing. But again, and I can not stress this enough, request confirmation of it in writing!!!!!