The Minnesota Attorney General’s lawsuit against National Arbitration forum alleges that NAF is “in cahoots” with one of the largest debt collection law firms in the United States, Mann Bracken. Mann Bracken, un-coincidentally, is also one of NAF’s best clients.
Arbitration awards are routinely confirmed by state district courts, as they must be under the Federal Arbitration Act as currently written. After confirmation, the creditor may use garnishment, levy, and other collection tools to collect the award—now a judgment. But the FAA provides for several reasons why state courts should not enforce arbitration awards; one reason is partiality or corruption.
The Minnesota Attorney General’s lawsuit calls into serious question NAF’s impartiality. And although NAF agreed to stop handling consumer arbitrations, there are thousands of arbitration awards floating around that remain potential enforceable.
Consumers facing motions to confirm arbitration awards in district court should bring up the allegations in the lawsuit and question NAF’s impartiality. If NAF is basically working for creditors and debt collectors, their impartiality is merely an illusion, and the arbitration awards should be vacated.
To find a consumer or bankruptcy lawyer, use the Caveat Emptor Consumer & Bankruptcy Lawyer Directory.
{ 3 comments… read them below or add one }
Thanks for this information. I currently have such a case pending. CACV is trying to confirm an alleged 2006 arbitration award against me for more than $18,000, that they claim I owed MBNA in 2004. I received no notice of an arbitration proceeding or award at the time and only learned about the arbitration award after they filed suit against me.
The trial is in a week.
I’ve brought these issues up in my affirmative defenses. And I’ve submitted the press release on the Minn. Attorney general’s site and the signed consent agreement between the state or Minnesota and the NAF as evidence in support of my defense.
We’ll see how it goes.
I recently went to court with World Wide Asset to confirm an award. THey state that I owe MBNA over $7000.00 & have not proved it to me or in court. They received an award in 2005 & now took me to court this month. I DID try to bring up the recent lawsuit & the judge would NOT hear it. Their attorneys even stated that they did not have any paperwork to show that I owe the money. I even had documentation on the Minnesota lawsuit & statements from some of the arbitrators that admitted what occurred but the judge would not hear it. The judge give me 2 wks to file a motion to bring this up & I am now talking to an attorney myself.
Could luck with your case & I hope your judge listens to you.
ALL of you need to contact Lieff, Cabraser,Heimann & Bernstein. They have just filed a class action law suit against the NAF. It is time for the NAF to pay for their faudulent activity. Call 1-800-541-7358 and ask for Daniel Hutchinson. I have been very pleased with the way they are handling this situation.