I read this from an attorney:
"Under the laws of all states in this country, an arbitration proceeding does not in and of itself toll the running of the statute of limitations[/u] on a credit card debt. The only exception to this is when the parties to the dispute that you are writing about sign a written tolling agreement stopping the running of the statute of limitations pending the arbitration proceeding."
Moreover, if at any point the paying side (the creditor/collection agency), chose to NOT pay for any reason, Arbitration would stop until payment began again. This differs from court, where it is not "pay as you go." Therefore, there cannot ever be any Tolling of the Statutes of Limitations during arbitration unless parties sign an agreeement to toll the Statutes!
I am not an attorney, I am just a consumer. This is not legal advice. Consult an attorney.
If one were to initiate an arbitration before there was a court case
I agree with this in principle.
and the reason I agree with this principle is because arbitration does not toll
the SOL of the claims you may bring into the mix.
However, most arbitrations take place after a person has been sued
in a court of law.
And being that the vast majority, if not all of these court cases have
been stayed, rather then dismissed, it would stand to reason that the SOL would definitely be tolled because of the court involvement.
This possibly could be one reason that a plaintiff/respondent will go ahead and file a lawsuit "after" you have already initiated a demand.
They may very well know that getting this into a court, and even forcing you to MTC after initiating, will toll the thing.