One of the reasons arbitration can be strategic in a debt buyer lawsuit is cost.

But what if the debt buyer refuses to pay the required AAA fees?

This happens more often than people realize.

AAA Consumer Rules Require Businesses to Pay Most Fees

Under AAA Consumer Arbitration Rules:

• The consumer filing fee is typically limited.
• The business must pay:
  • Administrative fees
  • Arbitrator compensation
  • Case management costs

These costs can exceed several thousand dollars.

What If the Debt Buyer Doesn’t Pay?

If the business fails to pay required fees:

• AAA may administratively close the case.
• AAA may decline to administer the arbitration.
• The arbitration may not proceed.

This can create leverage.

What Courts May Do

If arbitration was compelled and the plaintiff refuses to pay:

Some courts may:

• Dismiss the lawsuit.
• Prevent the plaintiff from returning to court.
• Find that the plaintiff is in breach of the arbitration agreement.

Other courts may:

• Allow the case to resume in court.
• Require further motion practice.

It depends on jurisdiction and procedural posture.

Strategic Considerations

Debt buyers rely on cost efficiency.

If arbitration forces:

• High administrative expenses,
• And the plaintiff refuses to pay,

That may undermine their claim.

However, you must be prepared to follow through with arbitration properly.

Bottom Line

If a debt buyer refuses to pay AAA fees after arbitration is compelled, it may:

• Stall the case,
• Create grounds for dismissal,
• Or increase settlement leverage.

But procedural handling must be careful and precise.