Rebuilding Your Credit

[bethrn99]

This account is 7 years old this month. Last payment on account was 1/31/2005. Account was charged off back in 2006. In 2009 I received a letter  from Cach LLC, that they were taking legal action and that it was scheduled for arbitration. I contacted an attorney who represented me, worked out some kind of agreement wiith Cach LLC before the date of arbitration, but I never received anything in writing from the court or from Cach LLC with the agreement or where to send the payments to. Fast forward to 10/2010 - I noticed a collection on all 3 credit reports from Cach LLC. I did a DV with Cach LLC and they validated the debt and sent paperwork from the court that says that they were awarded money in arbitration.  I never received this notice myself after the hearing, I thought that the arbitration was cancelled due to my attorney working out the agreement. According to the credit bureaus this is due to ageoff this month and already has come off 2 of them. In the meantime, I began receiving letters from an attorney who is representing Cach LLC, notifying me of the debt and sending an entry of appearance to the court. Is an arbitration a judgement? Can they legally collect on this at this point?  FYI - the arbitration took place just before the SOL expired. Also - I just fixed up my credit and bought a house last year - could this why they are pursuing?  Any advice would be appreciated - thank you!

[dharalex]

I would start with he attorney that represented you. He should have told you the results of the negotiation meeting prior to arbitration. It sounds like maybe you didn't fulfill your obligation as agreed, and they are coming after you again. I'm not sure if arbitration can take the place of a judgment, but they should be able to forward paperwork outlining the results of the arbitration if it actually took place. It seems to me that no activity as occurred since 1/05, then SOL has expired, and they cannot collect...and they know it. If indeed that has happened, everything else is a moot point. You need RobertEG to chime in!

[okdebtfighter]

Which forum was the Arbitration through?

Jams or AAA or other?

Arbitration is expensive for them.  If you read the agreement, they have to pay you for what ever you pay to file the arbitration, usually up to $500.00.  They usually also agree to pay for the first 2 days of hearings.  On average, the consumer pays no more than $500.00 for Arbitration and they pay around $3 to $5k for the Arbitration fees.  That also doesn't count the attorney fees.  Attorney's aren't cheap.  Most debt collectors do not follow through with Arbitration, but some do. 

It sounds like it is indeed past the SOL. 

[Shogun]

I would definitely contact the attorney that was handling this and find what the agreement was.