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Posts posted by BackFromTheDebt

  1. 8 minutes ago, Goody_Ouchless said:

    This tends to be automatic, as there are IRS rules that they need to follow. The way I got around it was that lawyer put language in the settlement that said we settled for the sake of convenience and did not admit to any debt. I had to go back and forth with IRS, but they eventually squelched the 1099.

    That is good information to have. 

    In my case, I was under water the entire time. I did get notices from the IRS requesting me to pay, so I typed up and signed statements with my assets and liabilities at the time of settlement, showing a negative net worth.  The IRS accepted that. 

    • Like 1
  2. 2 hours ago, Clydesmom said:

    Did you get a "pre-legal" letter or an actual summons?  There is a big difference.  If it is a letter stating they sent your file to an attorney for review then you need to send a debt validation letter within 30 days of when you got it.  That buys you a little time.  If you got a summons because they already sued then you need to answer to the court.

    CreditOne has a carve out for debt cases in small claims court and the amount of yours puts the case squarely in small claims in OH and arbitration would not be an option. If they do sue your options are to defend yourself if you cannot afford a lawyer, file bankruptcy if you qualify or settle.


    This is a big reason why it makes a difference whether a case has been filed. 

    If a case has been filed, arbitration is out of the picture. 

    If this is a letter saying the matter has been sent to an attorney, arbitration is possible for a short time. I won against a similar situation with a different creditor by filing in arbitration right before they filed in small claims court. 

    Small claims exemptions are one of the few times to file in arbitration before a court case is filed 

  3. My arbitration cases were all in the early days, but the strategy may still work. 

    What I did:

    I would fill out the forms, mail the forms to JAMS, with a copy to the opposing attorney. I wouldn’t pay the filing fees yet.  I would then contact the opposing attorney and offer a mutual dismissal of all claims in both the court and arbitration.  If they agree, no fees need to be paid by anyone. 

    That sometimes worked.  In another case I waited until the case was closed by their non-payment. Then one has to pay the fees, but it is still a victory. 

    In some other cases I was able to get a settlement with NDA much later in the process, but those were OCs. 

    • Like 1
  4. 15 hours ago, madaboutu45 said:

    MCT was granted have until next month to do the AAA 

    boy oh boy 

    thanks for all your help 

    My advice is to file ASAP, because of possible delays  in the process 

    Make sure a copy of everything goes to the opposing attorney. 

    You probably won’t need to send the AAA papers to the court. 

    When you get the response from AAA, send that to the court.  At that point you have done what you need to do.  And send what you send to the court to the opposing attorney as well.  

    Then, see what happens. 

  5. That is a completely different kettle of fish.

    SOL plays no part in your strategy.  

    Step 1:  Send in a DV.

    As for Step 2, that is an interesting situation. You have two options.

    Either wait for them to sue and fight it out in court, or, assuming this will wind up in small claims, file for arbitration before they can sue you.  That is the only way to get a Citi case into arbitration if it’s small claims  is to file before they sue. That’s how I got a small claims amount for my Citi/Home Depot into arbitration. 

    I am no expert on Texas.  @texasrocker is. 

    So I always defer to his greater knowledge of the Lone Star State.  

    • Like 1
  6. 3 hours ago, Arbitration all the way said:

    It's neither. I don't owe them any money. They allege I did in the past but I'm not able to talk about the outcome of that. :)

    I'm now alleging they owe me money for a non-permissible pull. As everyone knows (or doesn't) the arbitration clause survives account closure now and forever.

    Then you are talking about you going after them. 

    I’ve seen some malefactors who want to cut a check as soon as they are called out for their actions.  Others who will negotiate once sued or in arbitration, and a few who will fight to the bitter end.  Some of the last category take the whole thing very personally for some reason. 

    You may be facing an organization that, as a matter of principle, decided to fight to the bitter end.  In which case, you either win or lose.  

  7. 1 hour ago, Arbitration all the way said:

    Yea I searched but didn't find much.

    I tried to settle a few times and I have radio silence so I assume they are not interested.

    I guess at this point my strategy will be to paint them as an unreasonable by forcing a an in-person hearing. I know most arbitrators try to push settlement.

    Painting them as unreasonable won’t help. 

    What often helps is getting the bill for the in person hearing.  That often, but not always, gets them to negotiate. 

    There are several people, including myself, who have had creditors agree to the same settlement they ignored or rejected earlier when faced with the hearing bill.  

    Of course, YMMV.  This could be a case of a creditor who wants to punish people who choose arbitration.  It could be an attorney who is using this to rack up the bills, and doesn’t care what is best for the client.  

    What you need to do is to fight this vigorously.  Get all their documentation during discovery.  Get as many status hearings as possible.  Go over their accounting with a fine tooth comb.  Object to their witness.  File a motion to have their witness appear in person.  I have won cases, or at least forced a settlement, several times this way.  

  8. I don’t have any experience with American Speedy, and I don’t recall any threads about them. You could do a search. 

    It appears they won’t back down.  If they have already spent over $3000 on an $1100 debt, they aren’t walking away. 

    If I were in your shoes I would try to settle. 

  9. 2 hours ago, WhoCares1000 said:

    Probably not because although the company is located in California, the employee is located in Texas. I am an employee at a company based in Colorado where all the employees work remotely. I reside in Minnesota and that is where I pay taxes even thought the paychecks are drawn from a Colorado account. In fact, my company also pays Minnesota workmans comp and unemployment insurance. I would think that is the same for the OP. Therefore, I believe that Texas law would apply, regardless of where the company paying the paycheck is located.

    That is different for different companies, and different states. 

    I used to work remotely for a California company, and they couldn’t figure out a way to pay me in Wisconsin as an employee. So I had to work as an independent contractor with my own company set up and I was paid 1099.  So I only had to file Wisconsin taxes. 

    I now work mostly remotely for a company in Illinois.  Fortunately Wisconsin and Illinois have tax treaties so I only pay Wisconsin taxes.  

    I have no idea if a company can garnish California wages from a Texas resident.  I don’t know the garnishment laws.  If I were the OP, I would investigate rather than making assumptions.  

  10. 2 hours ago, Velocity Slayer said:

    I also posted that if their lawyers lie or misrepresent that I would file an ethics violation against them. And I let Velocity know, that per the alleged contract, even if I lost arb, I would appeal it and rack up another 20k debt. 


    Within 30 days of a final award by the arbitrator, any party may appeal the award for reconsideration by a three-arbitrator panel. 

    Any of the documents they sent you, did the bill of sale list your name and alleged account? Did the contract have any blanks spaces? If so 
    15 USC 1692e 807
    10) The use of any false representation or deceptive means to collect or attempt to collect any debt or to obtain information concerning a consumer.

    Uh, telling them you are going to rack up their bill may be a bad idea.  

    If they win the case, they may claim you are acting in bad faith.  That may give them an opportunity to force you to pay their fees.  This has been seen rarely, but it has been done.   One of Judge Susan Weber Wright’s last cases she put about $60,000 in sanctions against a guy for acting in bad faith.  The fellow who was sanctioned posted here and the deduct “other “ board under the name ColtFan.  

    We have also seen this in JAMS a few times. 

    • Like 1
  11. 55 minutes ago, Xtreme98 said:


    The arbiter has been agreed upon.

    What are the next steps I should be looking at?

    I understand that the roles have been reversed so if and when they pay the arbiter fee what is my next move?

    It seems as if its a preliminary hearing. What will that entail exactly and what case am i pleading. I want to be as ready as possible for this in case they pay the fee.

    On my initial filing i just used a basic consumer debt dispute. I know that can be changed i'm just unsure what we are shooting for at this stage.

    Any help, comment, advice would be greatly appreciated.

    Another poster mentioned counter claims, which are a potent weapon if they are bona fide counter claims.  Don’t just make s*** up.  

    Discovery is a big thing.  Make sure you use discovery to get all their evidence against you. 

    This is also a good time to go over their accounting with a fine tooth comb.  I got the accounting for Cap 1 thrown out of court even before arbitration because their affiant wasn’t qualified.  

    I found some possible discrepancies with the statements from another OC I can’t mention.  Things that cast doubt on the validity of the statements.  For example, a statement from one year would have an ad with a date from a later year.  

    • Like 2
  12. 3 minutes ago, boilrroom said:

    Velocity was coming after me for an alleged 16k. I came up with counter claims/ violations against them and their law firm. They still wanted a piece of me. I elected arb, they said they were game for it. I asked for the names and addresses of their witnesses, and also filed complaints with the CFPB, attorney general etc...they dropped it and closed the case.

    I also left bad reviews on google / yelp for velocity and their lawfirm, I have removed them now since they dropped this alleged account.

    My mindset is that no one will get a penny from me. Worst case I rack up a 20k bill for them. And if I lose I will just file chapter 7. I filed chapter 7 , 11 years, ago, super easy and stress free. Within 2 years I have a 720 credit score. I would rather pay $1500 to file, than pay any lawyer or garnishment.

    That strategy tends to work best when one has bona fide counter claims.  

    I got Cap 1 to walk away from arbitration with that strategy.  Also some other big name OCs I am not permitted to name. 

    But, I had real, bona fide counter claims.  In one case I sent the new attorney my proof during discovery (I had already settled with the original attorney). As soon as the new attorney saw my evidence, he was quite ready to come to an agreement to close the case.  

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