AAA----WARNING---Especially citibank cardholders

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Those of you exercising arbitration need to watch out on the AAA designated contracts.

I found out a Cap1 lawyer was trying to "nudge" a consumer into AAA by sending the consumer AAA paperwork to initiate. Fortunately, this consumer is going to file with JAMS instead.

However, AAA may possibly allow the debt collection claim, as a counterclaim, if consumer initiates arbitration.

I reccomend you still stay away from AAA, but U.S. Bank, Citi card, AAA is an option.

*****SO ITS IMPORTANT IF YOU EXERCISE AN ARBITRATION CLAUSE THAT HAS "AAA", BUT NOT "JAMS", MAKE SURE YOU GET JUDGE, IN THE COURT ORDER, TO FORCE CREDIT CARD TO INITIATE."****

AAA will not accept arbitration claim from credit card under those circumstances.

However, if you are "caught", by court order to initiate with AAA, (because JAMS is not an option) AAA has a "hidden" procedure that requires the arbitration clause be reviewed for consumer fairness and adherence to AAA consumer protocols first. Here's the procedure...

AAA Review of Consumer Clauses
The American Arbitration Association applies the Supplementary Procedures for Consumer-Related
Disputes to arbitration clauses in agreements between individual consumers and businesses where the
business has a standardized, systematic application of arbitration clauses with customers and where the
terms and conditions of the purchase of standardized, consumable goods or services are non-negotiable or
primarily non-negotiable in most or all of its terms, conditions, features, or choices. The product or
service must be for personal or household use. The AAA will have the discretion to apply or not to apply
the Supplementary Procedures and the parties will be able to bring any disputes concerning the
application or non-application to the attention of the arbitrator. Consumers are not prohibited from
seeking relief in a small claims court for disputes or claims within the scope of its jurisdiction, even in
consumer arbitration cases filed by the business.

IMPORTANT! TO CONSUMERS
If you have a dispute with a business, your agreement may have an arbitration clause naming the
American Arbitration Association (AAA) to provide arbitration services. The AAA will only administer
your dispute if the arbitration clause meets certain fairness standards that are contained in the AAA's
Consumer Due Process Protocol.
If your claim is for $75,000 or less in actual damages and the arbitration clause in your contract does not
substantially comply with the standards contained in the Protocol, we will give the company an
opportunity to comply and meet those standards at the time you file your claim. In order to determine if
the arbitration agreement substantially and materially complies with the due process standards of the
Consumer Due Process Protocol, the AAA reviews the parties' arbitration clause only, and not the
entire contract. The AAA's review of the arbitration clause is only an administrative review to determine
whether the clause complies with the AAA's minimum due process standards in consumer arbitrations.
However, the AAA's review is not an opinion on whether the arbitration agreement, the contract, or any
part of the contract is legally enforceable. If a party wishes to raise issues concerning the legal
enforceability of the arbitration agreement, the contract or any portion of the contract, those issues may be
presented to the arbitrator for a determination.
If the AAA has determined that the arbitration clause does not comply with the standards contained in the
Protocol, and the business does not comply, the AAA will not handle your claim. However, you may
pursue whatever other remedies you choose in another forum, and you will not be charged any AAA
fees or expenses. If your claim is under $75,000 and does go to arbitration, your costs will be capped at
either $125 or $375, depending on the amount of your actual damages claimed. In addition, under the
AAA's procedures, you may claim any amount of special damages such as attorney's fees or punitive
damages, without an increase in fees.
Small Claims Court Option: Instead of going to arbitration, you may pursue your claim in your local
small claims court, if it meets that court's jurisdictional limits. If you wish to have a small claims court
hear your claim, you should contact them directly.

TO BUSINESSES
In order for you to name the AAA as the dispute resolution provider in your agreements with consumers,
your arbitration clause must substantially comply with the Principles of the Consumer Due Process
AAA ONLINE LIBRARY 2
Protocol of fairness and due process in predispute arbitration. If you have an agreement with an
arbitration clause that names the AAA, please contact us through the AAA office nearest you.
The staff in our offices can also give you information about the AAA consumer ADR processes.
If a case is filed against your business and your arbitration clause contains provisions that are not
acceptable under the Consumer Due Process Protocol, you will be given an opportunity to comply within
a specific period of time. If you do not revise your arbitration agreement to comply with the
Consumer Due Process Protocol, we will return the filing information to the consumer with
instructions to pursue other remedies and we will refuse to administer any other cases until your
arbitration agreement is in compliance. Please see the Notice to Consumers and Businesses.
In order to determine if the arbitration agreement substantially and materially complies with the due
process standards of the Consumer Due Process Protocol, the AAA reviews the parties' arbitration
clause only, and not the entire contract. The AAA's review of the arbitration clause is only an
administrative review to determine whether the clause complies with the AAA's minimum due process
standards in consumer arbitrations. However, the AAA's review is not an opinion on whether the
arbitration agreement, the contract, or any part of the contract is legally enforceable. If a party wishes to
raise issues concerning the legal enforceability of the arbitration agreement, the contract or any portion of
the contract, those issues may be presented to the arbitrator for a determination.
For all consumer cases with claims under $75,000, the business is responsible for all AAA fees and
Arbitrator compensation in excess of the consumer capped fee amounts.

However, if you are "caught" having to initiate with AAA, objecting that the cardholder arbitration clause does not meet AAA protocols is what needs to be done!

AAA is skitish about waiving the consumer protocols because of what happened to NAF.

Arbitration clause has to go throuh this review first.
http://www.adr.org/sp.asp?id=22019

Translation: If you have only AAA available, and you could not get judge to force other guy to initiate, this is the spot to challenge. This translates into a lot of time.

This is assuming AAA will accept a credit card debt collection counterclaim. I'm not convinced they will, but this is a way to deal with that if AAA would accept a counterclaim for the debt.

Just stay away from AAA. So in citi, U.S. Bank agreement, you have to get bank ordered to initate.

****The easy solution to this challenge is to exercise arbitration clause prior to suit in your VOD/dispute/cease comm letter. Any lawsuit, at that point is a debt collection violation to immediately sue the other guy for.******