Huge mess. Don't know where to start.

[Stacy]

I just found this site a few days ago, unfortuately, and to make a long agonizing story short, I being sued. After a series of bad, panic-induced decisions I have a complete mess. If this is the wrong forum let me know, as this is my first post and I'm a wreak.

I made the mistake of using a debt settlement service for 3 delinquent accounts (long story how I got here)...but over the course of a year Chase has finally filed suit to the tune of $12,000.00. Of course at the specific direction of the settlement service, my case went to arbitration and of course it was decided in favor of Chase. I honestly thought they were going to help reach a settlement on my behalf. I feel so incredibly stupid and defeated, I have basically given up.

I was served on Thursday last week...taped to my door..and have 20 days to respond. There is no date for hearing from what I can see, but I'm at a loss as to what to do next. Do I hire an attorney at this point?

I wish I had found this place sooner...any direction would be much appreciated. Thanks for listening.

See new post below.

[Nikro]

Hi Stacy and welcome.

I know it's easier said than done, but take a deep breath and relax as much as possible. It won't help matters if you are all geared up and panicking.

Do you think you could answer the questions in this thread as it will help everyone get the information needed to help:

http://www.debt-consolidation-credit-repair-service.com/forums/showthread.php?t=242744

[Stacy]

1. Who is suing you? Chase/Attorney for Chase

2. For how much? $12,461.33

3. Who is the original creditor? Chase/Bank One

4. How do you know you are being sued?

Received summons

5. How were you served? Were you served?

Summons was taped on my front door. It appears to have been delivered by Sheriff's Service.

6. What was your correspondence (if any) with the people suing you before you think you were being sued?

I've been supposedly working with a debt settlement service. The account went through "arbitration," and I was directed how and when to respond to the arbitration notice. I was notified in November, 06 that Chase was awarded the full amount sought.

7. Where do you live?

Indiana

8. When is the last time you paid on this account?

12/05/05

9. What is the status of your case (if anything has been opened)? You can find this by a) calling the court or looking it up online (many states have this information posted daily).

It appears to have been signed by the county clerk, assigned to a judge, given a cause #, and the county seal has been affixed to the front page, beyond that I have not called to verify.

10. Have you disputed the debt with the credit bureaus (both the original creditor and the collection agency?) No

11. Did you request debt validation before the suit was filed? If not, don't bother doing this now. No

12. Does your summons require a response? (Look hard!) If you don't get a questionnaire with your summons, you are still probably required to answer it in writing. If you don't respond to the lawsuit notice you will lose automatically. In 99% of the cases, they will require you to answer the summons, and each point they are claiming. We need to know what the "charges" are. Please post what they are claiming. Did you receive an interrogatory (questionnaire) regarding the lawsuit?

"Motion and Application To Confirm And Enforce Arbitration Award" Again, I'm not sure how to respond.

13. What evidence did they send with the summons? An affadavit? A statement from the OC? Anything else they attached as exhibits?

Copy of Arbitration Award letter, and a bad copy of the Cardmember Agreement - no signature page or identifying info.

14. What is the SOL on the debt? To find out: 6 years

Thanks in advance for you help.

[Stacy]

If this case was filed in small claims court, does the $6,000 award limit apply?

[Stacy]

I keep reading.

[divemedic]

If it were me, I would be looking into an action against the DS company that gave you bad legal advice.

[Recovering Attorney]

I agree with Dive.

There are some defenses to a confirmation motion, but they don't all apply everytime. I'd seek out a naca.net attorney to consult with.

[Methuss]

Unless the debt settlement company has an attorney on staff to give out legal advice, they are in a world of hurt. Giving you legal advice when not licensed as an attorney is an illegal practice of law and you can sue them for any damages you suffer as a result of their misrepresentation. But that's an after event. Right now you need to get a lawyer to defend you on the arbitration award enforcement.

As Recovering said, look up lawyers on naca.net or call your local bar association office for a referral to a lawyer that specializes in consumer law.

[Stacy]

They do, however, (the ds) have a disclaimer in their "Debt Solution Kit" that they do not provide legal advice. But now, as a result of their direction or "program," I find myself in a lawsuit. I did sign a Limited Power of Attorney with this outfit that states:

"TO PROACTIVELY INTERCEDE AND/OR INTERVENE AND/OR NEGOTIATE, MEDIATE, OR ARBITRATE THE SETTLEMENT OF ANY AND ALL OF MY CREDITOR CLAIMS, SUITS, LEINS, JUDGEMENTS, AND/OR DISPUTES."

"Be it further known and understood that I/We consider the failure of any creditor, third party agent (collection agent or member of the bar) to recognize this power of attorney to intentionally be acting to interfere with my/our prospective contractual avantage, which may be legally actionable in tort."

"The recipient of this LIMITED POWER OF ATTORNEY FORM, is specifically instructed by the undersigned PRINCIPAL(S) to contact the designated ATTORNEY IN FACT at the address set forth below; in addition under the general laws under the Fair Debt Collections Practice Act, and the Fari Credit Reporting Act, as a creditor or third party agent of a creditor, you do not have the ability to refuse to work with my/our designated ATTORNEY IN FACT, for such would constitute a refusal to work with me/us. If you so choose, you do so at you do so at your own risk."

This was sent to Chase at the onset of the "program."

Has anyone ever seen anything like this? I will heed the advice of the previous posters, and appreciate your input....but does this look familiar to anyone?

Scuze the typos...

[Stacy]

I have an appointment with an attorney tomorrow morning, but as I was researching (i'm talking hours and days here) I pulled up the Indiana Code regarding arbitration. As I read further I found...

IC 34-57-2-1

Written agreement to arbitrate; enforceability; exemptions from chapter

http://www.ai.org/legislative/ic/code/title34/ar57/ch2.html#IC34-57-2-1

( This chapter specifically exempts from it's coverage all consumer leases, sales, and loan contracts, as these terms are defined in the Uniform Consumer Credit Code IC 24-4.5

http://www.ai.org/legislative/ic/code/title24/ar4.5/ch5.html

Where no such remedy is allowed.....

I'll be filing a motion to dismiss Monday morning.