If you decide to pursue arbitration, timing and procedure matter.
Here is the general process.
Step 1: Review the Contract Carefully
Confirm:
- Arbitration clause exists.
- It covers the type of dispute.
- It allows either party to elect arbitration.
- The clause applies to assignees (important for debt buyers).
Step 2: File Your Answer First (If Required)
In many jurisdictions, you must:
- File an Answer.
- Avoid default.
- Preserve defenses.
Failure to answer can waive procedural rights.
Step 3: File a Motion to Compel Arbitration
Your motion typically requests that the court:
- Enforce the arbitration agreement.
- Stay or dismiss the court case.
- Order the parties to proceed through AAA or JAMS.
Step 4: Attach Supporting Documents
Include:
- Copy of the credit card agreement.
- Relevant arbitration clause.
- Any assignment language showing it applies to successors.
Step 5: Argue the Federal Arbitration Act
Most arbitration clauses are governed by the Federal Arbitration Act (FAA).
Courts generally favor enforcing valid arbitration agreements.
Step 6: Await Court Ruling
If granted:
- The court case is stayed or dismissed.
- Arbitration proceeds.
If denied:
- The case continues in court.
Motion to Compel Arbitration Template (Debt Lawsuit Guide)
Below is a simplified example structure. This is guidance — not a substitute for legal advice.
Caption
[Your Name]
Defendant
v.
[Debt Buyer Name]
Plaintiff
Case No: _______
Motion to Compel Arbitration and Stay Proceedings
Defendant respectfully moves this Court to compel arbitration pursuant to the Federal Arbitration Act and the arbitration provision contained in the governing credit card agreement.
1. Existence of Arbitration Agreement
The underlying credit agreement contains a binding arbitration clause covering disputes arising from the account.
2. Applicability to Plaintiff
The agreement expressly applies to successors and assigns.
Plaintiff, as alleged assignee, is bound by the same arbitration provision.
3. Scope of the Clause
The present dispute arises from the credit account and falls within the scope of the arbitration agreement.
4. Relief Requested
Defendant requests that this Court:
- Compel arbitration.
- Stay or dismiss these proceedings.
- Grant such other relief as deemed proper.
Respectfully submitted,
[Signature]
[Date]
Important Considerations
- Deadlines matter.
- Waiver can occur if you litigate too far before requesting arbitration.
- Each state has procedural nuances.
- Arbitration must be pursued properly after granted.
Strategic Takeaway
Arbitration is a procedural weapon.
In the right case, it can:
- Increase plaintiff costs.
- Create settlement leverage.
- Change case trajectory.
But it must be deployed carefully.
