Overdue Discover Card is with Attorney, Help!

[jag1500]

I have an account with Discover with $5000 on it. I stopped making payments three months ago. They were contacting me and I sent them a debt validation letter and that I only would like to be contacted via mail and not be contacted by phone. I later found out via more research that debt validation does not fully apply to the original creditor. I wrote them a second letter stating that I am willing to settle the debt for 25% of the amount. I later find out that it's better to actually talk to the creditor so I called them today and talk to one of the agents. The agent told me that since I did not want to be contacted my file has been forwarded to an attorney. I asked if this has been charged off or if the attorneys is with discover. She said the only thing she can see is that the file has been forwarded to the attorney and if you will be contacted by mail. What does this mean? can I still settle? or am I being sued?

[racecar]

Im sure you will be sued very soon.

I would elect arbitration with jams. Your account is just out 90 days they will have all the records.

Arbitration is expensive they wont want to pay for it.

Average cost of a simple breach of contract suit is around seven thousand.

Agreement to arbitrate. If a dispute arises between

you and us, either may choose to resolve the dispute

by binding arbitration, as described below, instead of

in court. Any claim (except for a claim challenging the

validity or enforceability of this arbitration agreement,

including the Class Action Waiver) may be resolved

by binding arbitration if either side requests it. This

includes claims and disputes relating to any other

Account or agreement you have or had with us. THIS

MEANS IF EITHER YOU OR WE CHOOSE ARBITRATION,

NEITHER PARTY SHALL HAVE THE RIGHT TO

LITIGATE SUCH CLAIM IN COURT OR TO HAVE A

JURY TRIAL. ALSO DISCOVERY AND APPEAL RIGHTS

ARE LIMITED IN ARBITRATION.

 

The strategy and steps of arbitration

http://www.creditinfocenter.com/community/topic/314030-the-strategy-and-steps-of-arbitration/

http://www.consumerfinance.gov/credit-cards/agreements/search/?q=discover+bank

http://www.jamsadr.com/

[racecar]

If you wish to begin an arbitration against

us but you cannot afford to pay the organization’s or

arbitrator’s costs, we will pay those costs if you ask us in

writing. Any request like this should be sent to Discover,

PO Box 30421, Salt Lake City, UT 84130-0421. If you

lose the arbitration, the arbitrator will decide whether

you must reimburse us for money we advanced for you

for the arbitration. If you win the arbitration, we will

not ask for reimbursement of money we advanced.

Additionally, if you win the arbitration, the arbitrator

may decide that you are entitled to be reimbursed

your reasonable attorneys’ fees and costs (if actually

paid by you).

Hearings and Decisions. Arbitration hearings will take

place in the federal judicial district where you live.

[jag1500]

What if I talk to debt settlement company that works on the percentage of money they save me? Do u think they will take it and resolve the issue?

I head arbitration companies favor the creditor

[racecar]

That's why you elect with jams.

Don't waste your money on a debt settlement company they will take most of the money in fees and you will still be sued.

I would start studying the rules of civil procedure if you don't want to arbitrate.

http://www.leginfo.ca.gov/.html/ccp_table_of_contents.html  CALIFORNIA CODE OF CIVIL PROCEDURE

 

http://california-discovery-law.com/civil_discovery_motion_practicre.htm  Discovery

[jag1500]

That's why you elect with jams.

Bottom line, i want to settle sbd get it out if the way.

Is it possible to settle for less than amount owed via arbitration?

What are my chances of calling the attorney and giving him a call to settle the account? Is there a chance for settling less than Amount owed with the attorney?

Also, if I do get sued, will they ask for my pay stubs? Need to know if I have to be careful about revealing the amount of money I am making or hours bring cut at work.

Thank you very much for your help!

[BV80]

@jag1500

 

You can still settle.  However, I would be very surprised if they would accept 25%.   If your state allows garnishment, they could take you to court, win, and garnish your wages.

 

To see if the account has already been charged off, check your credit report.  If Discover is reporting, their entry would indicate if the account is charged off.

 

Should you decide to settle, you should contact whoever it is that you were told to contact.  Once an amount is agreed upon, they might let you pay off that amount with monthly payments if you can't afford to pay a lump sum right now.  If you decide to that, carefully read whatever you might have to sign.

[Recovering Attorney]

If you get a notice from the attorney, ask for validation. If you get sued, DO see a decent consumer lawyer. There is lots of info o this board and elsewhere, but you need cogent advice. Arbitration is a good way to put a stick in their spoke, as it gets it out of court, and it is expensive to the other side ( since you can ask them to front the costs), but the arbitrators are back in the game now, so things move just as swiftly as a lawsuit without any real protections for you. 25% is a good place to start, but with a fresh debt like this one, expect a less generaous discount. Money talks, so maybe you put 25% dow and pay another 25% over 6 months. See if that works.

[gwheelock915]

I wiped out Discover and helped one other person beat them here in IL small claims. Its a crap shoot, but they generally keep good records. I helped a poster win since the attorney was too lazy to get the documents together, and I won because I pulled out a false affidavit from their account manager. Needless to say, the CFPB jumped all over it, and I met with them to give them more documents. The State of Ohio is conducting an investigation as well.

[jag1500]

So, I got the letter from Discover today. Basically it states the amount I owe, my date of birth, that my account has been closed because I can't meet financial obligation and a number to call to speak with an agent to make payment arrangements.

 

I have already called Citi, Bank of America and Chase and they gave me a settlement offer. So, i guess i am not getting sued? Should i just call that number, mention i do not have money but can borrow from family to settle this accout (which is what i did with Bofa, Citi, and chase).

 

What's you experience like with Discover regarding settlement?

[shorebird]

I wiped out Discover and helped one other person beat them here in IL small claims. Its a crap shoot, but they generally keep good records. I helped a poster win since the attorney was too lazy to get the documents together, and I won because I pulled out a false affidavit from their account manager. Needless to say, the CFPB jumped all over it, and I met with them to give them more documents. The State of Ohio is conducting an investigation as well.

When I cried FOUL to the bogus affidavit of the 'Legal Placement Manager', they came up with a second one, who had been previously ruled as 'non-trustworthy' in a similar case.  They seem to switch off - sometimes the affiant, sometimes the notary.  Did anything come of this?

[jag1500]

I wiped out Discover and helped one other person beat them here in IL small claims. Its a crap shoot, but they generally keep good records. I helped a poster win since the attorney was too lazy to get the documents together, and I won because I pulled out a false affidavit from their account manager. Needless to say, the CFPB jumped all over it, and I met with them to give them more documents. The State of Ohio is conducting an investigation as well.

 

I got a phone call today from CIR Law Firm regarding this. They left a message, I am planning to call back. This is my plan, let me know if I am doing it right.

 

I will ask whether they currently own the debt or acting on the behalf of Discover. I will mention that I do not have any momey, can't make any payment but my dad said he will let me borrow the money if I can settle. I can settle for 25% of the amount.

 

If they get too legal or tough. I can will ask for debt validation if they own the debt or an affidavit if they are acting on behalf of Discover and will say I can only move forward after having these documents.

 

What do you all think? Thanks for your help in advance.

[BV80]

Check Discover's entry on your credit report.  If the account has been sold, it will state "sold" or "transferred" somewhere in the entry.  If you don't see anything that indicates they sold the account, then they still own it, and the law firm is merely collecting for them.

[jag1500]

Check Discover's entry on your credit report.  If the account has been sold, it will state "sold" or "transferred" somewhere in the entry.  If you don't see anything that indicates they sold the account, then they still own it, and the law firm is merely collecting for them.

 

I checked on Credit Karma, not much info. I checked on Credit Sesame, they want $9 for credit report and only show the analysis. When I login to Discover.come, it shows my account, balance and other info. When it is charged off, it will say this account is no longer available right?

 

What I would breally like to know is how to talk to this Law Firm Is my strategy good? I want to settle, the less the pecentage the better.

[jag1500]

I called the CIR Law Firm, the guy answered and said he is a debt collector, not a attorney himself but works in a Law Firm that specializes in Debt Collections. He is collecting on behlaf of Discover. He asked for a payment, I explained I cannot make any playments. He insisted on a payment but was nice. I said that I can borrow money from dad and settle the account but am not able to make any payment. He asked how much, I said I can settle the account for $1300 (it's a $5200 debt), that's 25%. He said he cannot definitely do $1300. I asked how much can he do. He said let me talk to my lawyers and got back to me and then said it will be the full amount of $5200. I said I definitely cannot do that, he said we can get back in touch in few weeks and see if anything changes. I said ok.

 

How dificult is to settle with these Firms? Should I mention I am looking into bankruptcy to get them to settle with me for atleast 50%?

[racecar]

https://www.annualcreditreport.com/cra/index.jsp its free to check your credit report

The IRS may count a debt written off or settled by your creditor as taxable income.

The creditor will report the amount you didn't pay as lost income to the IRS.

The IRS treats the forgiven amount as gained income, for which you pay income taxes.

The same is true when you negotiate a debt reduction.1099c

http://webcache.googleusercontent.com/search?q=cache:pg1-O8LKMrcJ:www.irs.gov/uac/Form-1099-C,-Cancellation-of-Debt+&cd=1&hl=en&ct=clnk&gl=us Form 1099-C, Cancellation of Debt

[jag1500]

Today, I got mail from CIR Law Firm. I had previously talked ot them on the phone and they said they will not settle, they want 100% of the money. The account is about 70 days overdue. The mail states, you owe $5100 and this amount is due. If you do not request validation within 30 days, this debt will be considered valid. In case you request validation, validation request will be sent to the original creditor and a judgement will be obtain and sent to you,

 

Which of the folowing should I do?

 

1. Send mail and Request validation and put it off more (Risk being sued?)

 

2. Send mail and Request an affidavit that they have the legal authority to represent Discover.

 

3. Send mail and Mention that I talked to them on the phone and cannot make any payment but can settle for 25% by borrowing from family.

 

4. Call them and mention I recieved their mail and mention I cannot make payment but can settle at 25% by borrowing from family.

 

5. Do not do anything yet and let them call me and offer settlement again on the phone.

 

Any help is appreciated, thanks in advance.

[racecar]

racecar, on 15 Jun 2013 - 12:08 AM, said:

That's why you elect with jams.

You have no leverage to make them settle - elect with jams-commence arbitration proceedings - they will offer to settle.

[jag1500]

racecar, on 15 Jun 2013 - 12:08 AM, said:

That's why you elect with jams.

You have no leverage to make them settle - elect with jams-commence arbitration proceedings - they will offer to settle.

 

 

I do not know much about arbitration:

 

1. Is JAMS a company or type of arbitration?

2. How can i get the process started?

3. What will be my fees?

4. If they do elect to have arbitration, will I pay the full amount? In payments or required to pay full?

[jag1500]

racecar, on 15 Jun 2013 - 12:08 AM, said:

That's why you elect with jams.

 

 

Racecar, I read the link you posted earlier: http://www.creditinfocenter.com/community/topic/314030-the-strategy-and-steps-of-arbitration/

 

So, all I have to do is send them a CMRRR saying that I dispute this debt, request validation and elect arbitration with JAMS to resolve this matter between us.

 

Is this right? or do I need to also call or do something with http://www.jamsadr.com ?

[jag1500]

Any help with this is appreciated. I really need advice with this soon.

 

all I have to do is send them a CMRRR saying that I dispute this debt, request validation and elect arbitration with JAMS to resolve this matter between us.

 

Is this right? or do I need to also call or do something with http://www.jamsadr.com ?

[nobk4me]

Any help with this is appreciated. I really need advice with this soon.

 

all I have to do is send them a CMRRR saying that I dispute this debt, request validation and elect arbitration with JAMS to resolve this matter between us.

 

Is this right? or do I need to also call or do something with http://www.jamsadr.com ?

 

_____________________________

 

That's what I would do (bolded part).  But also look at the Discover agreement to see if you have to do anything else - I think there is a special address you have to send arb elections to.

[jag1500]

 

That's what I would do (bolded part).  But also look at the Discover agreement to see if you have to do anything else - I think there is a special address you have to send arb elections to.

 

Thanks nobk4me, however i do not have the orginial agreement with discover. There are bunch online but do not know which one applies to me :-/

[needabailouttoo!]

 If you do not request validation within 30 days, this debt will be considered valid. In case you request validation, validation request will be sent to the original creditor and a judgment will be obtained and sent to you.

 

First of all, even if you don't ask for validation within their 30 day timeframe, FDCRA says that a court can't consider this as an acknowledgment of debt from you---they're using this as a threat to make this seem like it's time-sensitive.

 

Second, there is no automatic judgment against you just because you asked for a validation, especially if you’ve already filed your answer.

...you did file an answer, right? Even if you are planning on settling, you should still file an answer before time runs out. You can work out settlement details afterward and before the court date. They can dismiss the case against you at any time if they're confident a deal is going to be worked out...in the meantime, it looks like they already aren't treating you fair by giving you BS. Protect yourself legally first by filing an answer.

[jag1500]

First of all, even if you don't ask for validation within their 30 day timeframe, FDCRA says that a court can't consider this as an acknowledgment of debt from you---they're using this as a threat to make this seem like it's time-sensitive.

 

Second, there is no automatic judgment against you just because you asked for a validation, especially if you’ve already filed your answer.

...you did file an answer, right? Even if you are planning on settling, you should still file an answer before time runs out. You can work out settlement details afterward and before the court date. They can dismiss the case against you at any time if they're confident a deal is going to be worked out...in the meantime, it looks like they already aren't treating you fair by giving you BS. Protect yourself legally first by filing an answer.

 

I got the letter last monday, June 24th. I am writing here to get help to file an answer or reply to their letter. I posted on ConsumerRecoveryNetwork.com as well and they said If you lose in arbitration they will get an award for the full amount which could then be reduced to a judgment.

 

i want to settle and want this to go away. I offered them 25%, but even willing to settle at 50%. You think if I send the respose below via CMRRR, it will make them settle or make them go away? Is this all I have to do for now?

 

----

 

This letter is in response to your letter dated ______________________, 2013 (copy enclosed).

I dispute this alleged account. As per the FDCPA, I have the right to request proper validation of the alleged debt.

I elect private contractual arbitration via JAMS to resolve any disputes between us.

All phone calls are inconvenient, so all communications need to be by mail.

 

Regards,