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Everything posted by BackFromTheDebt

  1. There are several reasons why email correspondence is better: 1. Some of these guys may be fancier talkers than you. Email lets you even things out a bit. 2. You get a paper trail. OK, actually electrons and not paper, but you get the idea.
  2. In some states $6500 would be small claims. In others it is not. Is this small claims? If so, the arbitration agreement won't help you.
  3. At some point one must make a business decision. The lenders made a business decision, that they were actually hoping you would get in over your head. Seriously. They don't make money from people who pay off their cards every month. If you keep a balance, they make money. If you miss a payment and they can charge you all sorts of fees, plus jack up the interest rates to some exorbitant level, they make a LOT of money. They WANT you to get in slightly over your head. If you get in way over your head, at some point most of the money you owe are fees and userous interest rates. So they recoup what they can by sending it to a JDB. At this point not one penny you pay will go towards paying off your debt to the lenders. It is all paying off people who speculate that they can wring enough money from you in judgments to make a profit. That is why the JDBs rarely go to arbitration, esp. for amounts this small. Once it is in arbitration, it is a lose/lose proposition for them. Either they walk away and lose what they spent on the debt + legal fees, or they lose a LOT more chasing the debt. They almost always cut their losses. And the fact that some debts are just plain noncollectable fits in with their business plan. A certain number of people they sue will file for BK, or will be judgment proof, or will beat them in court, or will beat them with arbitration. If that were not the case, they would have to pay a lot more for their debts.
  4. Excellent point. The point is, they MIGHT violate, not that they will violate.
  5. No, it does NOT cost them $550 to get into JAMS. The filing fee is $550 for them, which they may not pay. If they don't pay the fee, you might be able to get away with not paying your $250. They would soon find themselves with invoices for about $1200, and then another for about $5000, and then they start getting big. That is why most JDBs just walk away.
  6. How much typing do you want to do? I hope that doesn't seem sarcastic. That information probably doesn't hurt, but it probably doesn't help. I, personally, would leave it out. There is a case to be made for leaving it out, in that they might possibly claim the agreement doesn't apply to them. Which is false information about the legal status of the debt, which is a violation of the FDCPA. You want to give them a little rope in case they want to hang themselves.
  7. OK, just to hammer in an already obvious point, but sometimes even something that seems obvious isn't to a novice. The letter of election is nice, but optional. It doesn't help much EXCEPT it may create a situation in which the other party violates the FDCPA. Just keep EVERYTHING from now on. Let us know what they do, in case they do something stupid. Or not stupid. They are in a situation now where it is extremely easy to violate the FDCPA. The MTC is essential. I mean, absolutely essential. BrothersKeeper knows Michigan law, and I don't, so when in doubt you know whom to listen to. Captain Obvious signing off now!
  8. One hopes this is not correct, but it would not surprise me at all. The Old Boy's Network is VERY strong. The Network is often MUCH more important in judge's decisions than mere laws. I remember a friend of mine, when his house was foreclosed on. His new wife's name was not on the title, but she was a defendant in the suit. They no longer lived in that state, and had not lived together in that house as a married couple. My friend flew back to his old state to court, not to defend himself in the foreclosure, but to point out to the judge that the law specifically stated his wife should NOT be a defendant in that case. Judge didn't care. It was his buddies or the law, and many judges will never go against their buddies for a pro se defendant, not matter what the law says.
  9. Excellent points. I had a case with Cap 1 go into arbitration, and they never paid the fees. The case was dismissed w/o prejudice before it was closed in JAMS. Had I known then what I know now, I would've moved the case be dismissed with prejudice. Anyway, Cap 1 never bothered me again. My county has some good judges, and the original judge threw out their affidavit. So, if they had been stupid enough to bring the case up again, any judge in that county would've thrown in out. However, I can imagine that Cap 1 might've tried again with a Mayberry judge, if this had been a different county or state.
  10. Yes, Florida is extremely strict about waiving the right to arbitration. You have probably already waived it, but I am not a Florida attorney.
  11. I must admit my statement was NOT based on my personal experience. I have had 4 cases in JAMS with 5 accounts: 2 of them were filed after the motion, the other two were preemptive, and were filed before the suit. I had seen cases where judges did not grant an MTC because the case was not already in JAMS, and I was basing my comments on the experience of others. Perhaps you can tell us why you found filing before an MTC to no be worth the headaches. I am not saying this to be sarcastic, I really am interested.
  12. Interesting. Many times, people recommend not filing for BK unless absolutely necessary, because you won't be able to file for BK again for a while, and what happens if you have some big medical debts. I have NO idea how big your medical debts are. If they are large enough you would be filing BK anyway, might as well do everything in one fell swoop. Of course, you should discuss this with a competent BK attorney before making a decision. In fact, I would STRONGLY recommend you discuss this matter with a competent BK attorney.
  13. Yes. There is a provision in the contract that if you ask them to pay, they MIGHT pay if they decide you are too poor to pay. Even if they don't pay, this can delay things a bit before you actually have to pay the $250 fee. If you already paid it, demand a reimbursement. You can include this as part of your objections, if you haven't already sent in your objections.
  14. There are two caveats: 1. You are in Florida. Arbitration there is different. That means either you arbitrate BEFORE they sue, or else the ONLY thing you do when sued is to file a MTC. 2. Discover will almost always go to arbitration, spending large sums of money to chase small amounts of money. HOWEVER, it could buy you some time, and it could give you the chance for a better settlement.
  15. Here is my main goal: if you prepare yourself BEFORE you are sued, you are usually in better shape than if you wait until they sue you. You have another thread where it is now too late to do some of the things that could've avoided a law suit, because they've already sued. For this case, you still have a chance to avoid a law suit.
  16. Blah. Not good. There is a small claims exemption, and the amount you owe is almost certainly small claims. That means the arbitration strategy won't work. If this has already been filed, you will have to work it out in court. There are two possible ways to do this, and you might try both at the same time: 1. Attack their claims to own the account. This is MUCH harder for you to do than in the old days, so this is a long shot. 2. Contest the case, and call them to negotiate a settlement. If you are contesting the case, that means some work for them, so they might be willing to settle for a smaller amount. That at least would avoid a judgment against you and garnishment of your husband's wages.
  17. A few important questions, as in VERY important. 1. Who is the original creditor? 2. Who owns the debt now? Did ARS buy the debt, or are they collecting for someone else? 3. How can you be 100% sure this is legitimate? Have you sent them a letter demanding debt validation? If not, and if this is still within 30 days of their initial letter, you should do so. 4. Are you saving everything they mail to you, and logging every phone call they make? You really should do that. They might mess up and violate the law, which could be good for you and bad for them.
  18. If you haven't reached out to them yet, send the following two things: 1. Request they pay your fees. They will send you a form to fill out. 2. Ask them if they are willing to negotiate a settlement. Perhaps make a starting offer. Once you have done that, you know your situation. If they don't pay the fees, you win. If they accept your offer, you are finished. If they ignore you, wait for them to pay the fees, and then just follow the arbitration procedure until you are close to a hearing. Once you have made an offer, don't make another until there is a good reason to, such as a hearing scheduled but not paid for.
  19. # 8 is legalese, account stated. That means you and they had an agreement for you to pay whatever the account is, and you never disputed it. That is to get around not having a contract. OK, you have a little homework to do, on this forum and elsewhere. This is originally a Credit One account. I don't know anything about the user agreement. Look it up online, the consumer protection board has the copies. Google it. You can also search this forum for Credit One. What you need to know at this point is: 1. Is there an arbitration agreement. Yes is good, no is bad. I THINK they have one, but I've never had an account with them. IF the answer to #1 is no, stop now. 2. Is there a small claims exclusion. That means, does the agreement say it is not applicable to small claims court. No is good, yes is bad. If the answer to #2 is yes, stop now. 3. Does the agreement list JAMS, AAA or both? AAA is good, JAMS is much better. Some people who know the answers may chime in. Get the answers SOON, and then come back for your next steps. If the answers are what you want, you can get them to go away.
  20. Need to add -- Since mine was long ago and far away, and I had the violations, you can't assume you will have the same results. OTOH, Cap 1 is NOT one of the OCs most known for arbitration. There is a chance they will agree to mutual walkaway before the fees are paid. If not now, see how eager they are to pursue this in arbitration. Between the time they get the bill for the hearing and the actual hearing is also an excellent time to negotiate a settlement.
  21. Have you contacted them recently? This is one of the best times to negotiate with them. I don't know if Cap 1 will pursue your case or not. Mine was many years ago, with some very serious violations of the part of Cap 1 and their attorneys, so Cap 1 didn't even bother to pay the fees.
  22. It looks like they are saying you and them will agree to drop all possible claims against each other. Which is standard for these agreements. Check other wording to make sure the agreement says you and they agree to drop all possible claims from the beginning of time until the time the agreement is signed.
  23. This is important. I handled a case in JAMS for my wife once. This was one of those OCs that NEVER back down. This time they had done something stupid. When it came to discovery, I asked their lawyer to explain their accounting. He couldn't. They backed down after that. He did NOT want to go to a hearing trying to defend that mess. Not long after, I handled a case for myself in JAMS, against another OC that NEVER backs down. In this case it helped a lot that I had violations against them. However, I attacked their accounting left and right, giving hundreds of examples of problems. They backed down. If the two OCs that have the reputation for NEVER backing down backed down when their accounting is attacked, a JDB is going to be even more likely to back down.
  24. Yes. In fact, in some cases that is better. When you file your MTC, it sometimes helps if the case is already in JAMS.