Again, don't focus on legal arguments or the merits of the case. Focus on the fact that in a JAMS arbitration, Citi will have to be represented by an attorney charging hundreds of dollars per hour and will have to pay thousands of dollars in filing fees. IMHO the arbitrator will never hear the case. Citi will offer you some bucks to get you to drop it. View it as a fun learning experience if you wish.
I hear you, but in which city did you apply for Arb? Would it matter any if say the OP is based in NY,LA etc etc a major city where Citi has a major presence and probably has lawyers on staff? I can hear if the OP is Dayton based and Citi lets say has no presence then either they send someone ($$ tkts, hotel etc) or pay for a local, and I can fully see where it will be cheaper just to pay the claimant off, but not if they have legal staff where the Arb will take place. But I may be dead wrong in my thinking. If there wasnt a filing fee then Id do it, with a fee and what I may not consider a strong case I wouldnt want to waste any more of my $$
Could be Im overthinking this, but some DPs of folks who went to Arb in places that Citi has a strong presence and got their $$ is important