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Everything posted by BackFromTheDebt

  1. Well, legally there are only two responses, there would be three if the debt is within the SOL: 1. No response at all. This is the most common. 2. They can contact you once to tell you what their next step is after your FOAD. If the debt is within the SOL: 3. They can sue. Other than that, they are not permitted to contact you at all. If you send a FOAD letter with the debt within the SOL, you are asking for a lawsuit. Past the SOL, they cannot sue. So any contact other than the one time telling your their next step is completely banned.
  2. Please don't make the DV fancy. Back in the old days, over a decade ago, we used to send several page letters saying we wanted x,y, and z. Most of the stuff in those letters were useless. The ONLY thing valuable for those letters is that one of the templates had some language for my home state (Wisconsin), which says the OP has to provide a full accounting IF I DEMAND IT. Even that wasn't a good idea for the DV letter, since they don't have to provide that info until the court or arbitration case. And I did beat Crap 1 due to them not properly signing off on their accounting. Keep the DV letter short and simple. Example: Dear Scumbags, I dispute this alleged debt. Please send me validation of this debt. Yours, Your Name If you are worried about them calling you at work, add the line: "I am not permitted to receive phone calls of this nature at work". If you put that in, and they call you at work, you can sue. I did win a case once where I asked my supervisor to tell me I was not permitted to take calls from debt collectors at work. He laughed, and told me I was not permitted. I put that in a letter, they kept calling me, and I went on a family trip with the settlement money.
  3. A FOAD letter doesn't have to be fancy. Here are two examples. Both of these legally preclude them from contacting you again. Occasionally they will ignore Example 2, which gives you an opportunity to sue them: Example 1: Dear Evil Debt Collectors, Never contact me about this alleged debt again. Yours, Your Name Example 2: Dear Evil Debt Collectors, I refuse to pay this alleged debt. Etc.
  4. Good. Your second biggest goal at this point is to get some idea as to the time frame, so a suit won't catch you by surprise. If the file has not yet been reviewed, that is good. Of course by far your biggest goal is for them to drop the case. Make sure you have the Midland policy in front of you when you call them, and you can refer them to the policy on the internet if they are not familiar with it.
  5. That line is a little confusing, but it appears to say they might conduct discovery under Texas law. No need to respond. You are entitled to discovery as well.
  6. You didn’t post the redacted letter, so it is hard to tell if they violated the law. If the letter said they won’t sue, then they are probably okay. If this really is past the SOL, and not then trying to collect a judgment, you may safely ignore their letter. Or, you can send a FOAD letter telling them not to contact you anymore.
  7. Arbitration is certainly a tactic to consider, but probably not your first tactic. Midland has a policy of forgiving debts for people who are unable to pay due to medical reasons. At least one poster on this forum has had Midland back off for this reason, and possibly others. Of course it would have been better to contact Midland before the account went to an attorney, but it is NOT too late. Look up Midland's web site, and I think they have the information there. Contact the attorney's office ASAP, preferably on Monday, and find out what forms and documentation you need to qualify. Worst case scenario you buy some time. If it looks like you need a plan B, then go to arbitration. Folks on this forum normally are not in favor of preemptive arbitration, but filing in JAMS on a small claims Citi account is one of the exceptions to the rule, since once it gets to small claims court you have lost your chance to arbitrate. I did that once with favorable results. Another thing to do to buy some time is to send a DV letter before the 30 days since their first letter has passed. That will usually buy anywhere from a week to a month of time. In some unusual situations a DV letter can buy quite a bit of time. One caveat -- once you send a DV letter, they cannot do any collection activities until they validate the debt, so that could throw a monkey wrench in negotiations you have over medical exemption. For that reason, I would consider not sending in a DV letter unless things seem to be going a bit badly. When you call them, try to work out a timeline with deadlines on each side. This is the sort of situation where they are probably willing to wait a reasonable amount of time for you to get the information you need, and also to decide if they are going to drop the case or not. If you can negotiate these timelines, then you know you probably (nothing is 100%) NOT be sued before a certain time. If they reject your claim, they will still probably give you at least a little bit of time to negotiate with them. That would buy you some time to file a preemptive arbitration for your Citi card. One thing -- it would probably be a good idea to prepare your arbitration filing for the Citi card well in advance. That way, if they reject your claim, you can immediately file in arbitration, instead of having to prepare everything while racing them. And if you do file, make sure to send copies of everything to Midland's attorney. I hope this helps.
  8. I think it means they will not go after you for their attorneys fees. you mentioned arbitration in the header but not the post. You can only get arbitration if your account is old and was opened when arbitration was still in effect, if you can argue the survivability clause. what year did you open the account?
  9. That was my interpretation. It is very common for dismissal stipulations to have a clause like that. All the ones I have agreed to had that clause; the difference being when I agreed to a dismissal it was always with prejudice.
  10. I don't know if this applies to you father or not -- From what I have read on this forum, Midland has a policy of not pursuing cases against debtors with severe financial issues. If your father is facing dire financial straights due to medical issues, then Midland might be persuaded to drop the case against him. Your father should contact them immediately to inquire as to what documentation he would need, etc.
  11. There are several possibilities. This could be a card you forgot about. This could be a case of identity theft. Calvary will almost certainly send you a dunning letter. When that happens, send a reply stating that you believe the account to be fraudulent, and that you demand proof of the account. Send this CMRRR. Save a copy of your letter and the green card receipt. If you believe the account to be fraudulent, file a report for identity theft with the nearest police precinct. Get a copy of the police report. Notify credit reporting agencies. When you dispute the debt, if you have already filed a police report, send a photo copy of the report with your letter of dispute. Save everything.
  12. 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.
  13. 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.
  14. 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.
  15. 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.
  16. 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.
  17. 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.
  18. 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.
  19. 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.
  20. 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
  21. 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.
  22. 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.
  23. 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.
  24. 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.
  25. 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.