Arbitration is good for businesses and consumers. Companies report that they can use arbitration to collect delinquent accounts quicker and cheaper. Arbitration replaces the expense of paying an attorney to simply write a legal-sounding collection letter to the debtor, allowing creditors to reduce collection and litigation expenses. Companies and their customers also report an excellent quality of decision-making in arbitration because their cases are decided by arbitrators who are experienced attorneys and who understand business and contract law. First, parties need to insert an arbitration clause into their agreements.
Arbitration clauses are many and varied.
Any claim, dispute or controversy by either you or us against the other, or against the employees, agents or assignee of the other, arising from or relating in any way to this Agreement or your Account, including Claims regarding the applicability of this arbitration clause or the validity of the entire Agreement, shall be resolved by binding arbitration by the National Arbitration Forum, under the Code of Procedure in effect at the time the Claim is filed. Any arbitration hearing at which you appear will take place at a location within the federal judicial district that includes your billing address at the time the Claim is filed. Judgment upon any arbitration award may be entered in any court having jurisdiction. A party may use a lawyer in arbitration, but it is not absolutely necessary. It is also not necessary to have a hearing with a room full of attorneys and company personnel.