One reason arbitration can be powerful in consumer debt cases is cost.

Let’s talk numbers.

Who Pays in Consumer AAA Arbitration?

Under AAA Consumer Arbitration Rules:

• The consumer typically pays a small filing fee (often around $200 or less).
• The business (creditor or debt buyer) pays:
  • Administrative fees
  • Case management fees
  • Arbitrator compensation

Those business-side costs can reach:

• $1,500 to $5,000+ or more
• Depending on complexity and hearing time

For small debt balances, this shifts the cost-benefit analysis.

Why This Matters in Debt Buyer Cases

Debt buyers operate on volume.

They rely on:

• Low filing costs
• Quick defaults
• Minimal litigation expense

If arbitration requires thousands in fees, some plaintiffs reassess whether pursuing the case is worth it.

Important Note

If you compel arbitration, you must still:

• Follow AAA procedures.
• Comply with timelines.
• Prepare your case.

Arbitration is not dismissal — it’s a forum change.