You Won Your FINRA Arbitration – Now How Do You Actually Get Paid?

Congratulations! The arbitrators ruled in your favor and awarded you damages. But here’s the reality check: winning an arbitration award and actually getting paid are two different things.

Let me walk you through what happens after you win and how to make sure you actually collect your money.

The Good News About FINRA Awards

Most FINRA arbitration awards do get paid. The industry has a strong incentive to maintain the credibility of the arbitration system, so most firms and brokers comply with awards voluntarily.

According to FINRA’s statistics, about 85% of monetary awards are paid within 30 days.

When Payment Gets Complicated

Problems arise when:
– The broker or firm doesn’t have enough money to pay
– The respondent has left the industry
– The firm has gone out of business
– The respondent tries to hide assets

Your Collection Options

Direct enforcement – You can go to court to enforce the arbitration award just like any other judgment.

Asset searches – Investigate what assets the respondent has that could be used to satisfy the award.

Garnishment – In some cases, you can garnish wages or bank accounts.

Professional licenses – FINRA can suspend or bar brokers who don’t pay awards.

Getting Professional Help

Collecting on arbitration awards can be complex, especially if the respondent is uncooperative. An experienced securities attorney like Bob Pearce can help you explore all your collection options and maximize your chances of actually getting paid.

The Bottom Line

Winning your arbitration case is just the first step. Make sure you have a plan for actually collecting your award, because even the best legal victory is worthless if you can’t collect the money.