If you have a credit card default, you have likely received an email with the subject: “Arbitration Proceedings Initiated.”
It looks scary. It has a “Case Number.” It threatens a “Sole Arbitrator.” Don’t panic. This is usually a bluff.
The Secret: It’s Not a Real Court Platforms like Sama are “Online Dispute Resolution” (ODR) services. They are private companies, not government courts. They rely on Speed and Silence. They assume you won’t reply.
The “Perkins Eastman” Defense In 2019, the Supreme Court of India ruled that a bank cannot unilaterally appoint an arbitrator.
- What they do: They pick an arbitrator for you.
- What the law says: Illegal.
How I Stopped It (Step-by-Step)
- I did not click the “Join” link.
- I sent an Objection Email citing the Perkins Eastman judgment.
- The Result: The arbitration was put on hold immediately.
Why It Works Banks use these platforms because they are cheap (₹500/case). If you object, it becomes a “Contested Case,” which costs ₹20,000+ to fight. The bank simply moves on to an easier victim.