debt stressed

Well, to tell you in the simplest words, it's the process where a disagreement between two or more parties is resolved by arbitrators. These arbitrators are impartial and they help to save the high costs and lengthy time of litigations.

I hope I made it simpler for you.

Too add to what Paul said, once you elect arbitration it takes the suit out of the court room. Arbitration is expensive for credit card companies and if you elect they bear most fees.

Basically what happens is that you would meet in a conference room instead of a court room. You, the credit card rep or lawyer for the credit card attorney and the arbitrator will sit down and talk through the situation. The arbitrator will listen to both and then make a decision. If it is binding arbitration, then what the arbitrator says is done, if it's non-binding then either of the parties can say no thanks and schedule a new court date.

It's supposed to be a more relaxed atmosphere and less confrontational. Now, my understanding from others on the forum is that Cap One had a binding arbitration clause in their credit card agreement. It was removed in January 2010. So if you defaulted prior to January 2010 you can still elect it.. Others have said it costs them about $5000 in fees to do it so a lot of times they will either settle or go away once you say you are electing this. The election has to be in writing.

Hope this helps.