How to File a Motion to Compel Arbitration Without a Lawyer

You’ve been sued by a debt collector. You can avoid court by filing a motion to compel arbitration. You don’t necessarily need an attorney to do this.

Many people successfully file these motions on their own. The process requires attention to detail and proper documentation. Our partner Solo can help you navigate the response process.

What Is Arbitration?

Arbitration resolves legal disputes outside of court. An arbitrator hears evidence and makes a binding decision. Both parties must accept the arbitrator’s authority.

Arbitration differs from mediation in one key way. The arbitrator makes the final decision. A mediator only helps parties reach their own agreement.

Arbitration settles debt lawsuits without going to trial. The arbitrator is an impartial professional. They listen to both sides and render a decision.

Binding vs. Non-Binding Arbitration

Binding arbitration produces a final decision. Courts can enforce the arbitrator’s ruling. You have limited appeal rights.

Non-binding arbitration creates a recommendation only. The decision becomes enforceable only if both parties accept it.

Most credit card and loan contracts contain arbitration clauses. State and federal laws allow you to compel arbitration. You must meet specific prerequisites first.

Verify Your Arbitration Agreement

Check your contract for an arbitration clause. A typical provision reads something like this:

“All disputes or claims relating to or arising under this Contract will be settled with binding arbitration in [State]. Any court with competent jurisdiction may confirm the award.”

Your dispute must fall within the arbitration clause parameters. Some agreements contain exceptions or exclusions. A contract might require arbitration for money disputes but not quality claims.

The Consumer Financial Protection Bureau maintains a database of credit card agreements. You can check the arbitration clause for your specific contract there.

Determine the Arbitration Location

Your contract specifies where arbitration must occur. File your motion in that district. Review your arbitration provision carefully.

The contract typically states the exact location. You must file in the correct jurisdiction. Filing in the wrong place wastes time and money.

Choose State Court or Federal Court

The Federal Arbitration Act (FAA) applies in both court systems. You can pursue arbitration in either venue. Federal courts often favor granting arbitration motions.

Federal court isn’t always required or available. State courts must also enforce the FAA. You can file in state court if federal court isn’t an option.

Consider which court handles your case currently. Filing in the same jurisdiction often makes sense. Our partner Solo helps you understand which documents you need.

Understanding Arbitration Administrators

Three organizations dominate arbitration in the United States. American Arbitration Association (AAA), JAMS Solutions, and Forum handle most cases. Your arbitration will likely involve one of these providers.

After the court accepts your motion, you select an administrator. Your contract may specify which organization to use. If not, you can choose based on fees and location.

Why Collectors Often Drop Cases

Arbitration costs significant money. The debt collector usually pays these fees. Many collectors drop cases rather than pay arbitration costs.

Your contract outlines who pays arbitration expenses. Collectors are typically responsible for these costs. Filing a motion to compel arbitration can end your lawsuit.

Arbitration gives you leverage in debt lawsuits. Collectors would rather dismiss than pay thousands in fees.

Arbitration Costs and Fees

AAA and JAMS charge substantial fees for arbitration services. The costs depend on the claim amount and case complexity.

Initial filing fees range from several hundred to several thousand dollars. Administrator fees, arbitrator compensation, and hearing costs add up quickly. Total arbitration costs often exceed $5,000.

If your contract makes the collector responsible, arbitration becomes your strategic advantage. Collectors face losing money even if they win. Many prefer dropping the case entirely.

Real Arbitration Clause Example

Synchrony Bank uses a detailed arbitration clause in their contracts. The clause covers most disputes between accountholders and the bank.

Key provisions include:

• Most disputes must go to arbitration, not court
• No class action lawsuits allowed
• Individual cases in small claims court are excluded
• You can reject arbitration within 60 days of opening your account
• The bank pays arbitration fees if you act in good faith
• You choose between AAA or JAMS as the administrator
• The Federal Arbitration Act governs the process

Notice the clause requires written notification. You must follow specific procedures to invoke arbitration rights.

Synchrony provides contact information for starting arbitration. They also explain how to reject the arbitration clause. Most people never reject it during the opt-out period.

The Arbitration Process Explained

The party seeking arbitration notifies the other party in writing. You can do this after a lawsuit starts. Send your notice to the address specified in your contract.

Select your arbitration administrator from the approved options. Contact AAA or JAMS to begin the process. The administrator assigns an arbitrator to your case.

Your arbitrator must be a lawyer with at least ten years experience. They apply the same laws a court would use. Procedural rules may differ from traditional litigation.

Arbitration happens by phone or at a convenient location. The process resembles a trial but is less formal. No jury participates in arbitration.

The arbitrator’s decision is final and binding. Courts can enforce the ruling under the FAA. Appeal rights are extremely limited.

When Arbitration Makes Strategic Sense

Arbitration works best for debts under $30,000. High arbitration costs discourage collectors from pursuing smaller debts. The fees often exceed the debt amount itself.

Arbitration benefits you when the contract requires the collector to pay. Check your agreement carefully before filing. If you must pay arbitration costs, reconsider your strategy.

Filing a motion to compel shows you’ll fight the lawsuit. Collectors often settle rather than proceed to arbitration. Your willingness to challenge the case creates settlement leverage.

You can negotiate debt settlements without an attorney. Understanding your case and options is essential. Know what you can afford to pay.

Possible Outcomes After Filing

Courts can grant or deny your motion to compel arbitration. If granted, the case moves from court to arbitration. The lawsuit is stayed pending arbitration completion.

The collector may dismiss the case entirely. Arbitration costs often make pursuit uneconomical. Many collectors cut their losses at this stage.

If denied, the lawsuit continues in court. You haven’t lost anything by trying. Our partner Solo helps you respond to the lawsuit appropriately.

Some collectors settle after you file the motion. They recognize you’re serious about defending yourself. Settlement negotiations often produce favorable terms.

Filing Your Motion Successfully

Gather your contract showing the arbitration clause. Obtain copies of the lawsuit documents. Prepare a written motion citing the arbitration agreement.

File your motion in the court handling your case. Follow local court rules for formatting and service. Send copies to the collector’s attorney.

Most jurisdictions schedule a hearing on arbitration motions. Prepare to explain why arbitration applies to your case. Bring your contract and supporting documents.

Courts generally favor enforcing arbitration agreements. The FAA creates a strong presumption toward arbitration. Collectors must show why arbitration shouldn’t apply.