Although credit cards have brought us so much ease still sometimes the credit card companies have to go through tough times because of bad debtors. This happens only when the set date for paying back the money passes. In such cases, the companies have an easy way to get through it all which is arbitration. One thing that needs to be noted here is that arbitration can take place if and only if there is a proper clause for arbitration in the contract or the agreement.
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A lot of companies and even people hire arbitration lawyers in Dubai as well so that they may carry out the process of arbitration on their own without wasting meaningful time of the company. This is one side of the story because then there are those people who do not even have an idea about arbitration and how it can prove to solve the matter to a huge extent. For such people, it is very important to know all the ifs and buts of credit card arbitration.
Mandatory Arbitration
For some people, a proper clause is mentioned that whenever there will be any dispute, the help would be taken from arbitration first. As a proper contract is formulated and signed with such a clause, it becomes mandatory for the company to first go for arbitration in case a dispute arises.
Note that if a credit card contract doesn’t possess a clause regarding mandatory arbitration, they will still be allowed to move on to arbitration for the disputed cases.
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Arbitration Process
The process of arbitration will get initiated if and only if the credit card company or the borrower finds a problem during the course. In such a situation, they will first file a claim to seek help from the arbitrator. In this way, all the concerned parties will be able to present their side of the story with accurate proofs and facts.
In this way, the arbitrator will assist the concerned entities like that of borrower and the credit card company to first negotiate. All the supporting documents will come into consideration so that the arbitrator may come to a final decision.
Effect of Arbitration
Arbitration lawyers in the UAE generate an unbiased opinion. If they see any problem in the borrower, they will make him /her pay the debt and will also make sure all other important steps also take place. Such measures may include;
· Freezing the bank account of the borrower
· Attaching the property of the borrower
· Charging fees for delays
In some cases, the matter may go in favour of the borrowers or the cardholders as well. For such people here is what that person can claim compensation for;
· In case of a false allegation by the credit card company
· In the case of refunding the arbitration charges
· For losses.
The cardholders can also ask for reliefs as well. This will only happen if the matter goes in favour of the cardholder. Such cases may include;
· Payment in instalments
· Asking for a reduction in the amount
· Asking for the Discount
All of such cases must always be kept in mind. Also, while you are on the verge of formulating your credit card contract, make sure all the important clauses are already mentioned. They will save you from different problems in the future. Also, if you still face any trouble, you should right away go to arbitration lawyers in Dubai. They know how to handle such matters most amicably. So, if they are there to look at your matter, nobody will be able to affect you.