IN THE NATIONAL ARBITRATION FORUM

 

 

BANK ONE DELAWARE, N.A.

 

            Claimant,

v.                                                                                 No. DA020700166198

 

ROBERT S. CHAMBERS,

 

            Respondent.

 

ANSWER AND NOTICE OF INTENTION TO DEFEND

 

Comes the Respondent and answers the Claim as follows:

1.  The Respondent acknowledges that he held a credit card issued by the Claimant.  However, Respondent disputes that the amount he owes Claimant equals the relief sought in the claim.  In particular, the amount sought by Claimant appears to include excessive interest charges and late fees designed to exploit profits at the expense of unsuspecting members of the general public.  Using the 6% interest rate identified by Claimant, Respondent would show that amount of relief sought by Claimant has overstated the interest due by some $265. 

2.  The claim for attorney fees is outrageous and is not permitted under Tennessee law.  Respondent was not aware of the Delaware law provision in his contract, or that Delaware would permit the award of an attorney fee.  As such the contract appears deceptive, with significant charges for attorney fees hidden away in fine print and written in “legalese” that an ordinary member of the public would not be expected to understand.  Tennessee law requires greater consumer protection, e.g., provisions for payment of an opposing party’s attorney fees would have to be shown prominently in any contract. 

3.  Respondent has rights under the Fair Debt Collections Practices Act, 15 U.S.C. 1692(g) (2002), that must be respected by the National Arbitration Forum.  In particular, Respondent hereby demands verification of the debt, and a strict accounting of all interest and fees charged by Plaintiff expressed in an effective annual percentage rate, so that he can determine whether the Plaintiff is charging usurious and unenforceable amounts of interest and fees. 

4.  The Respondent is suffering severe financial hardship but does not wish to file bankruptcy.  He has engaged the services of a non-profit consumer advocate organization, Financial Rescue Services (FRS), which is authorized to attempt settlements of Respondent’s debts on behalf of the Respondent.

5.  The Respondent is facing special financial hardship due to the following three circumstances.  The Respondent bought a house in 1998, and had to make several costly necessary reparations due to termites and a bad roof. The total repairs were $16,886. He found out again that he had termites.  He then started a contract with Terminex and had to pay another $1,000.  Additionally he and his wife had car troubles with both of their transmissions failing.  The transmission repairs cost $2,400. Additionally the Respondent’s wife’s car required an extra $1,985 in repairs. All of these unexpected expenses have created a severe financial downfall.

            6  Although Respondent has set aside funds each and every month in a fund with FRS, there are insufficient funds at this time to make an amenable settlement to the Claimant. Respondent is desperate to repay the debts, but he needs more time in which to do so.  Claimant, being fully aware of his financial situation, could and should have granted Respondent additional time. 

7.  Instead Claimant chose to take this matter before the National Arbitration Forum, and increase the debt, with $1,012.22 being for attorney fees.  Respondent is doing all he can to repay the debt owed to Claimant, but needs more time in which to do so as Claimant is demanding a minimum of 80%.

            WHEREFORE, Respondent prays that judgment for Claimant be denied at this time, so that Respondent may have additional time in a sincere attempt to settle this matter.

            Respectfully submitted this 17th day of September, 2003.

 

 

______________________________________

Robert S. Chambers, Respondent Pro se
Street Address here.
Memphis, TN

38098
Phone: (731) XXX-XXXX

 

 

Certificate of Service

 

            I certify that a true and exact copy of this answer was mailed to Claimant’s Attorney of Record on Sept. 17, 2003, at the following address: 

 

Brandon Jones

229 Peachtree Street NE

Atlanta, GA

30303-1601

 

 

 

                                                                        ______________________________

                                                                        Robert S. Chambers, Respondent Pro se