Arbitration clause: Either party in the dispute can invoke an arbitration procedure by virtue of having arbitration clause in the agreement or by way of mutual consent. The Arbitration clause is often included in the initial contract or agreement between the parties. The arbitration clause specifies that any disputes arising from the debt collection will be resolved through arbitration rather than going to court.

Selection of arbitrator: The next step is to select an arbitrator or a panel of arbitrators. The parties can either agree on a single arbitrator or follow the procedures outlined in the arbitration clause or the applicable arbitration rules to appoint the arbitrator(s). The arbitrator should be neutral and impartial.

Arbitration proceedings: The arbitration proceedings commence introduction about the process and WeVaad Arbitration rules. The parties then submit their arguments, evidence, and documents supporting their positions. The arbitrator(s) may hold hearings where both parties can present their case. The proceedings are generally less formal and more flexible than court proceedings.

Arbitration award: After considering the evidence and arguments presented by both parties, the arbitrator(s) will issue an arbitration award. The award is a binding decision that resolves the debt collection dispute. It will typically specify the amount owed, any interest or penalties, and the terms of payment.

Enforcement of the award: Once the arbitration award is issued, it is enforceable like a court judgment. If the debtor fails to comply with the terms of the award, the creditor can seek enforcement through the appropriate court. The court will enforce the award as if it were a court judgment.

Ex-Parte Procedure: Ex parte procedure in the context of arbitration refers to a situation where one party to the arbitration proceeds without the participation or presence of the other party. It essentially means that one party seeks relief or presents arguments to the arbitrator(s) without the other party being notified or given an opportunity to be heard. Ex-parte procedure can only be initiated if opposite party doesn’t appear for the procedure even after sufficient communication.

Invoked by Mutual Consent: Mediation is a voluntary process, so both the debtor and the creditor must agree to participate in mediation to resolve their debt collection dispute. It is generally initiated by one party proposing mediation as a means of finding a mutually acceptable resolution.

Selection of mediator: Once both parties agree to mediate, they can jointly select a mediator or choose one from a list of qualified mediators. The mediator should be impartial and skilled in facilitating negotiations.

Mediation process: The mediator acts as a neutral facilitator, assisting both parties in reaching a mutually satisfactory resolution. The mediation process usually involves the following steps:

1. Opening session: The mediator introduces themselves, explains the mediation process, and WeVaad Rules for the Mediation.
2. Parties’ presentations: Each party has an opportunity to present their perspective on the debt and their desired outcomes.
3. Joint and private sessions: The mediator may hold joint sessions where both parties communicate directly with each other. Private sessions (caucuses) may also be conducted, allowing the mediator to meet with each party individually to discuss their concerns and explore potential solutions.
4. Negotiations and agreements: The mediator facilitates discussions, encourages open communication, and helps the parties explore various settlement options. If an agreement is reached, it is typically documented in a settlement agreement signed by both parties.

Enforceability of settlement agreement: Once a settlement agreement is reached, it becomes binding upon the parties. The agreement can be enforced like any other contract. If either party fails to comply with the terms of the agreement, the other party can seek legal remedies for enforcement.

Confidentiality: Mediation proceedings are confidential, which means that the discussions, proposals, and settlement offers made during mediation cannot be disclosed or used as evidence in any subsequent legal proceedings. This confidentiality allows parties to engage in open and honest discussions without fear of their statements being used against them later.

Invoked by Mutual Consent: Conciliation is a voluntary process, requiring both the debtor and the creditor to agree to participate in conciliation to resolve their debt collection dispute. It may be initiated by one party proposing conciliation as a means of finding a mutually acceptable resolution.

Appointment of conciliator: Once both parties agree to conciliate, they can appoint a conciliator or seek assistance from a conciliation center or organization. The conciliator should be impartial and possess the necessary skills to facilitate negotiations effectively.

Conciliation process: The conciliator acts as a neutral facilitator, helping the parties engage in discussions to reach a mutually agreeable resolution. The conciliation process generally involves the following steps:

1. Opening session: The conciliator introduces themselves, explains the conciliation process, and WeVaad Rules for the Mediation.
2. Parties’ presentations: Each party presents their perspective on the debt and their desired outcomes.
3. Joint and private sessions: The conciliator may hold joint sessions where both parties communicate directly with each other. Private sessions may also be conducted, allowing the conciliator to meet with each party individually to discuss their concerns and explore potential solutions.
4. Negotiations and agreements: The conciliator facilitates discussions, encourages open communication, and helps the parties explore various settlement options. If an agreement is reached, it is typically documented in a conciliation agreement signed by both parties.

Enforceability of conciliation agreement: Once a conciliation agreement is reached, it becomes binding upon the parties. The agreement can be enforced like any other contract. If either party fails to comply with the terms of the agreement, the other party can seek legal remedies for enforcement.

Confidentiality: Conciliation proceedings are generally confidential, ensuring that the discussions, proposals, and settlement offers made during conciliation cannot be disclosed or used as evidence in subsequent legal proceedings. This confidentiality allows parties to engage in open and frank discussions without fear of their statements being used against them later.