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Subjects>Math>Math & Arithmetic

What is arbirtration?

Updated: 9/20/2023

Wiki User

∙ 12y ago

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It's like when two kids are fighting over something and they won't share. Neither of them budge, they both want it. Mom steps in and hears both kids sides of the story and then tells them how it is going to be whether they like it or not.

Both kids have to live with what she says.

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∙ 12y ago

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What happens when you don't pay a collection agency?

If the person has made an agreement to render payment and then defaults, the agency will probably initiate legal proceedings. The majority of CA's are not attorney's and therefore cannot themselves enter into litigation. They usually refer the account to a collection attorney who will then file a lawsuit against the debtor. The lawsuit must be filed in the debtor's state of residency and the state statutes will apply to all legal procedures. There are however collection agencies/law firms who now have the ability to file for arbirtration, the debtor/consumer should be very cautious in either case and if possible seek legal counsel. If the agency feels the debtor is "judgment proof" they may return the account to the original creditor who will then decide to resubmit for collection or close the account as uncollectible debt. macky83@juno.com

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