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Everything posted by BackFromTheDebt

  1. No, it means the original complaint uses a summons. An MTC requires a motion. You don't need to send anything other than an MTC. In the MTC, you can move that the court order the plaintiff to pay $xxx of your fees according to the contract. Filing an MTC appears to be sufficient notice under the arbitration agreement.
  2. The wording is quite vague. An MTC would almost certainly be considered sufficient notice with this wording, There is no harm in sending advance notice to the other side, either before or along with an MTC. If you do so, a demand (not a request) for costs may be included.
  3. Simple. Secured credit is when you put up something of value in exchange for the loan. The biggest examples are mortgages and auto loans. In these cases, the home or auto is the security for the loan. If you default on the loan, the bank can foreclose on your home or repossess your car. Unsecured loans are loans for which there is nothing of value backing up the loan. The biggest example is credit card debt. If you default on your credit card, there is nothing of value for them to seize to recover the cost of the loan.
  4. They might or might not. If you file an MTC, you can almost certainly get away with paying a lot less, although you may or may not have to pay arbitration fees. How is that possible? Well, anything can happen, but I wouldn't count of that happening to you. There are three possibilities: 1. PRA forgot about it. Not very likely. 2. PRA got a default judgment against your friend, and they haven't got around to doing anything yet, but they might do something about it later. They have years to do something. Very possible. 3. PRA got a default judgment, and decided your friend has nothing worth going after. However, if in the future your friend is in a better financial position, they will go after him. Very possible.
  5. Arbitration can usually win. Synchrony Bank has a great arbitration provision. PRA almost always folds in arbitration. !. Get the CC agreement from the CFPB site. @Clydesmom mentioned how to do that in her reply. 2. File an MTC. Look up the arbitration threads to see how that is done. Normally, you answer with arbitration as an affirmative defense, and file a Motion To Compel arbitration.
  6. What this means: If you are being sued, you are the respondent. The document says somebody else must sign and mail the forms. For example: I used to work for a company that had a mail bin for outgoing mail, which the postal worker would pick up every day. I would have the lady at the front desk sign the form, and drop the stuff into the mail bin.
  7. The disclaimer at the bottom basically stops this from being a violation in 48 states. This letter would only be a violation in Mississippi or Wisconsin. So at this point you have the choice of: 1. Ignore them. 2. Send an FOAD letter, telling them never to contact you again. The third choice of sending a refusal to pay you have already rejected as not worth the effort. If you feel like sending a FOAD letter, do so. If that is too much trouble, just ignore them.
  8. Bingo. AND make a good copy of whatever you send. One time I sent discovery answers to an opposing firm. Unfortunately, I thought I had the most up to date version backed up. I didn’t. I didn’t make a copy of what I had sent. And, I didn’t send it Certified Mail. That cost me big time.
  9. Different courts have different procedures. That being said, in general it is better to file ASAP, but in some courts that might not be the case. The problem with waiting until the next time you meet in court is that in some jurisdictions you have to give the other side the motion in advance. Although there are some courts where it is better to give the documents in court. Find out what process your court has for filing motions. Assuming you can file a motion, do so ASAP. Remember to send a copy to the opposing attorney
  10. If you move from the state in which you incurred the debt, there are two ways they can get you: 1. Sue in the old jurisdiction, get a default judgment, and domesticate the judgment to your new location. 2. Sue in your new location. I don't know the laws of the state in which you live, or the state in which the house is located. (Duh, I don't even know the states, let alone the laws). So I have no idea if they would be able to file a lien on the home. That is a very real possibility, though. They could file a suit, then file a lien on the home. Even if you wait to get the home until after a suit, there is a possibility that they could get the judgment, and then file a lien years later when the house is transferred. NOTE: Getting the home transferred into your name may be a magnet for creditors. Places that would leave you alone when you are renting will crawl out of the woodwork as soon as you own a home. Trust me, this is from a very nasty and bitter personal experience. What about BK? I don't know. In some states, if the home is your primary residence, you can exempt some or all of the value of the home in BK proceedings. However, if this home is not your primary residence, the laws may well treat it differently. I don't know if you qualify for BK 7 or not. Only an attorney could advise you on that. All in all, you are in an extremely complex situation. I would VERY strongly recommend discussing the situation with attorneys in both your state and the state in which the house is located. Yes, that costs you more $$$$ than asking some random strangers on the internet. But, your goal is to protect your interests in this house. It is well worth the money you spend to get the answers from someone who actually knows the best advice to give you.
  11. This is a complicated issue. I once had a case in which the law firm filed in small claims AFTER I sent them the JAMS paperwork for arbitration. I notified the law firm, and they immediately filed for a dismissal w/o prejudice. In a short time we agreed to have them file for a dismissal WITH prejudice in exchange for me not filing FDCPA claims against them. If you have enough time before your answer, I would send a letter to the law firm. Calmly spell out what they have done, and that you believe this to be an FDCPA violation -- taking an action they are not legally permitted to take (that is, the case had already been moved to arbitration). Give them a short time to withdraw the case. Make an offer that you will not pursue FDCPA charges against them in return for a dismissal with prejudice. Make sure the final agreement has language that the debt cannot be sold, etc. If you don't have the time, here are some possible affirmative defenses: 1. Improper venue. The contract forbids the case from being tried in court after arbitration has been filed. You filed, they ignored, they cannot simply take the case back to arbitration. This is a strong defense, and could be the basis for a dismissal with prejudice. 2. res judicata. Another magistrate already ruled that the case should be heard in arbitration. They ignored arbitration, therefore the case has been decided. This isn't as strong, but might work. In addition, you almost certainly have them on an FDCPA violation. If they don't agree to a dismissal with prejudice in exchange for not filing FDCPA charges against them, you should consult a consumer attorney right away. You have a strong FDCPA case against the law firm, as well as a strong breach of contract case against the plaintiff.
  12. I can't remember the exact thread, but -- I do remember a thread where the debtor initiated in JAMS. He made an offer (not sure if it was 40% or not), but Discover refused. Later on in the arbitration, between the time when Discover got the bill for the hearing and the actual hearing, Discover accepted exactly the same deal they had rejected earlier. My case was a bit different. In my case there was a legitimate SOL question. I initiated in JAMS (NO underlying court case, I initiated just before they were going to sue) a few months before the SOL in my state, but 2+ years after the Delaware SOL. The arbitrator hadn't ruled if we were gong to use Delaware SOL or my state's SOL. So Discover accepted exactly the same settlement between the time they got the bill for the hearing and the actual hearing as they had rejected earlier. In my case, the settlement was one I was very, very happy with. So there are at least two known cases in which arbitration was used to get a better settlement with Discover. YMMV.
  13. Well, in hindsight it might have been better to use the inheritance money to settle with Discover. But that is in the past. At this point, is there any way you can raise 40% of $13k? Perhaps take out a loan at a bank or credit union with your truck as collateral? Better still if you can get a pre-approval, or some sort of line of credit. That way, if you can get a settlement, you can raise the money quickly. If that is the case, then you may well want to take them into arbitration. Arbitration is used as leverage for the settlement.
  14. I am normally a big fan of arbitration, but in your case arbitration might be a HUGE mistake. Thing is, for consumer arbitration, the consumer only has to pay $250 in fees at most. This is a business card. Consumer arbitration rules probably don't apply. That means you would probably have to pay about half the cost of arbitration. You seem to be under the misconception that you can use consumer arbitration rules in the case where they sued you personally. Uh, that was a business card. Even a personal suit for business expenses would still be a business, not a consumer, case in almost every case. There are some exceptions, but you would have to convince them that you only used your business card for personal use. Even then, don't count on that working. And it get worse. AmEx almost certainly won't walk away from arbitration.
  15. Yeah, this post is old, but it bears repeating over and over and over, as long as people get into arbitration. When you get into arbitration, you are hoping for one of two results: 1. They walk away. This especially happens if it is a JDB. I did, however, have an OC walk away from a debt in the $10-15k range. Back when Crap 1 still had an arbitration agreement, they simply refused to pay the JAMS fees, and the case was dismissed. 2. You get some kind of settlement. This could be a mutual walkaway, or it could be one party paying money to the other party. I had one arbitration for which I could add a debt collector, and I got a small amount of money from them. So it isn't always the consumer paying the money. The settlement you get depends on a lot of factors. I actually came out ahead on my JAMS settlements. The other settlements were all mutual walkaways because of extenuating circumstances, such as some very genuine claims on my part. Or, in one case, there was an SOL issue (I filed in JAMS years after the Delaware SOL but a few months before my state's SOL, and the contract used Delaware law). The SOL issue combined with some questionable accounting and some legitimate claims on my part led to a mutual walkaway. Another case had some claims against their attorney, who arranged to just have the whole thing dropped with me dropping the claims against the attorney. One case involved some genuine malfeasance on the part of the OC. Their attorney seemed to lose all interest in the case as soon as he saw my evidence in discovery. If you don't have some really good claims against the OC, or SOL issues, etc., do NOT count on getting a mutual walkaway. JDBs are more likely to get a mutual walkaway or they just ignore JAMS and let the case get dismissed., There are a few very good windows for settlement: A. Between the time the JAMS case is initiated and when they have to pay the initial fee. This is why we often suggest not paying the $250 at front. This is a time when you have almost maximum leverage. You may be able to get a good settlement. I got a settlement at this point. As I mentioned, Crap 1 simply walked away, which was pretty much the same result. B. After discovery, if and only if there is something damaging to the creditor during discovery. As I mentioned, in one case I had some VERY damaging evidence against the OC, so their attorney got them to agree to a mutual walkaway at this point. Don't count on good settlement leverage unless you have the goods. C. Just before the hearing. I got an OC to agree to exactly the same settlement I previously offered at point A just before the hearing. The bill for the hearing is expensive, and sometimes they are willing to negotiate to avoid the hearing. I have seen other cases in which the OC ignored settlement offers until just before the hearing. D. If there is an appeal, repeat A-C. These are your best windows for settlement. Which usually means YOU contact THEM with a settlement offer. You will rarely get an OC to settle for a mutual walkaway, but in special cases it happens. In general, point C is your absolute best settlement, with point A a close second. Point C is only if they rejected your reasonable offer in point A, and you give it another shot. Point A is when you really HOPE to settle, to avoid all the hassles of the arbitration. Point B is a special case. If you have the goods against them, stick to your guns, insist on a mutual walkaway. You will get it if you have something they really don't want an arbitrator to see.
  16. I'm not sure what to tell you. My advice would be to document everything, Send in the money on schedule, perhaps send the checks certified mail return receipt requested so you have proof the checks arrived by the proper date. If they deposit the checks, you have a record (the cancelled checks). Save your bank records to show they actually deposited the checks. If they refuse to deposit the checks, you at least have a record that you sent the checks according to the signed agreement. That way, if they ever sue, then you have proof that you were abiding by a signed agreement.
  17. There are some cases in which an OC will buy back the debt. There are three possibilities: 1. The OC never sold the debt. 2. The OC bought the debt back. 3. The suit is an error.
  18. As you can see, this is a scam. Do not under any circumstances give them you credit card information. Do not give them any information at all.
  19. Some posts in the past have strongly suggested using the money to pay advance rent or mortgage, etc. You have to be careful with loans. If you just pay extra money, they will usually apply it to your principal. You need to work out arrangements so that the money you pay is earmarked so that you are paying x months in advance. One banker told me he has an arrangement with his bank so that his mortgage is paid 6 months in advance, and every check is used not for the current month but to continue being 6 months in advance. Perhaps you can work out that sort of arrangement so if you fall behind in your cash flow you will have a cushion to catch up. Good luck to you!
  20. If the house is under water, she may have to negotiate a short sale. With the mortgage and the lien that can get complicated. A little over a decade ago I had two rental properties that were under water and the tenants were on their way out the door. I tried to negotiate short sales. It was rough. The real estate agent took offers to both banks, which were rejected. Foreclosure judgments on both — the same day. In one case, after the judgment the bank agreed to a different short sale for the same amount. In the other case, the bank foreclosed, the property was vacant for six months, then they sold it for $10k less than our short sale offer. I was not allowed to refinance my own home for 7 years afterwards. In my state the banks rarely go after anyone for the extra amount over what they sell the property for, because they can foreclose in half the time that was. Other states may be different. In other words, a short sale may be the best option, but may not be possible. One alternative is to simply stop paying the mortgage, but still collect the rent, and let the bank deal with the mess. That kills the credit for 7 years, though.
  21. Cap 1 got rid of their arbitration agreement, sad to say. Too bad, since they ran away when I forced them into arbitration.
  22. Exactly. It is important -- the answer to many issues vary from state to state, county to county within a state, judge to judge within a court, or even vary depending on the judge's mood that particular day.
  23. There are other factors. For example, if you previously lived in County A, took out the debt in County A, defaulted in County A, and your last known address was in County A, it is possible they would allow the suit in County A, even if you had since moved to County B. Or they might grant a MTD without prejudice, and the plaintiff would just refile in County B.
  24. I did a variation of this. In those days, almost all the cards had arbitration, and arbitration scared the OCs. I started by paying off some cards with low balances. The cards without arbitration agreements I negotiated a settlement, except for one low interest USAA card I kept current and still use. Then I spent the next 6 years fighting the cards with arbitration agreements. In some cases I was able to get a little money fir violations. Altogether I paid less than 10 cents on the dollar, including the low interest rate card I kept. For the cards I negotiated or fought, my aggregate was leas than a penny on the dollar.
  25. If you are happy, this is great. The goal is to get a deal you can live with. Trust me, there were some arbitrations I’ve been through where it would have been easily worth $1000 just to avoid the hassles.