nickysduck2 Posted August 30, 2013 Report Share Posted August 30, 2013 Back in 2008 or 2009 I had an online payday loan that got to be a real problem. I kept up with the payments for a year but eventually called my bank to block them from deducting anymore money and I defaulted on it. The orginal contract said that in the event of non payment arbitration would used and I remember it said something about neither of us being able to take it to a court to be heard, arbitration had to be the method used. Im certain it said no courts. I am looking for my orginal contract to make sure but in the meantime I am being hounded by Kramer and associates over this debt.They like to play hardball and I have basically just ignored them to piss them off.I have not spoken to them at all or responded to their constant emails or the one letter they mailed me.This has gone on for about 3 months now. I am self employed,live in a non community property state (TN) and have no checking account in my name anymore so even with a judgement they would never be able to get any money. TN also allows up $10000 in personal property exemptions so im protected there too. I have gone through the arbitration process before and ended up having the case dismissed because it was gonna cost them more in arbitration fees than the debt was even worth so I am not scared if they do arbitrate since they will be the one losing money.They claim I owe $1400 and emailed me a final notice that I must pay within 7 days. I just want to ask if since the orginal contract said only arbitration could be used is that the means they MUST take to try and collect from me? They have not made any threats of court yet but I want to be ready in case they do! I read that Kramer was one of the most ruthless collectors. Link to comment Share on other sites More sharing options...
BTO429 Posted August 31, 2013 Report Share Posted August 31, 2013 These types of arbitration clauses are normally legal and binding. If they file a suit, hoping you didnt keep a copy of the contract, then you have them by the balls, they have to go to arbitration. 1 Link to comment Share on other sites More sharing options...
admin Posted September 3, 2013 Report Share Posted September 3, 2013 @nickysduck2 - It sounds like arbitration will be the method used. And they will have to provide a copy of the contract. I'd still look for yours, though. 2 Link to comment Share on other sites More sharing options...
paulieinil Posted September 5, 2013 Report Share Posted September 5, 2013 who is the lender?alot of online lenders are either offshore,tribal,or based in one state meaning chances are they are not licensed and kramer and associates is a complete bottomfeeder,but i need to know who the lender is before proceeding. Link to comment Share on other sites More sharing options...
admin Posted September 5, 2013 Report Share Posted September 5, 2013 @nickysduck2 - any updates on this? Link to comment Share on other sites More sharing options...
nickysduck2 Posted September 6, 2013 Author Report Share Posted September 6, 2013 The lender was Payday One of Delaware. I can not find my original agreement that includes the arbitration clause I only have the part that shows what I pay and the arbitration clause is not on it. Link to comment Share on other sites More sharing options...
paulieinil Posted September 6, 2013 Report Share Posted September 6, 2013 well kramer and assoc is in hackensack NJ,and paydayone sells their debt.so i leave it up to you,but i wouldn't pay them without at least a collection letter.you did get one right?btw paydayone is now called RISE CREDIT has been since MARCH this year so i don't think kramer and assoc can produce the original contract either.any idea how much you borrowed,and how much was debited until you blocked their ACH? Link to comment Share on other sites More sharing options...
nickysduck2 Posted September 6, 2013 Author Report Share Posted September 6, 2013 Yes it was around $1400. I got a letter in the mail today from them and threw it in the trash.I know their tactics well and how they use fear to try to get paid. I have never requested validation on this. The last collector this debt was listed with left out the arb clause when I requested validation. Link to comment Share on other sites More sharing options...
nickysduck2 Posted September 7, 2013 Author Report Share Posted September 7, 2013 Yippi! I just found my original agreement with every last page of the arbitration clause in it.Jams is one of the firms listed and it also happens to be the most expensive. I feel confident I have them by the balls now! It clearly states BOTH parties must use arbitration to settle any disputes and not a court of law. Link to comment Share on other sites More sharing options...
TomnTex Posted September 7, 2013 Report Share Posted September 7, 2013 Good that you found it, but you NEVER throw away a letter from a JDB, CA or OC. You must always keep a file on them each and every time. Link to comment Share on other sites More sharing options...
BTO429 Posted September 7, 2013 Report Share Posted September 7, 2013 But if arb does not resolve any thing both parties have the right to use the court system. You also need to be aware that a court can rescind any portion of a contract or the whole contract itself. I am not a proponent to mandatory arb, I submit that it undermines everyone's right to heard in a court of law. 1 Link to comment Share on other sites More sharing options...
Torden Posted September 7, 2013 Report Share Posted September 7, 2013 I am also not a proponent to mandatory arb. It should be limited to agreement per case. But as long as we have it, it's a good tool to use. Funny thing is the creditors have been the ones that wanted it, and it can bite them as well as the JDBs. Maybe JDBs should refuse to buy accounts with arb? Reality is, they never really know what they are getting ... they don't even get docs and details in way too many. Link to comment Share on other sites More sharing options...
nickysduck2 Posted September 7, 2013 Author Report Share Posted September 7, 2013 Im actually happy about the arb agreement because It costs more to go through the arbitration process than the debt is even worth. I had a dIscover card that I defauted on back in 2009 as well and I elected arb on it.It was about a $1500 debt. The lawyers played hard ball with me all the way. I refused to back down and insisted on a hearing through Jams. Its cost thousands for a hearing and I am pretty much judgement proof Thanks to TN law so I knew it would cost them all this money and they'd never see a dime. In this case they ended up dismissing it. I got a letter telling me it is not cost effective for them to continue trying to collect on this debt and I have never heard anything else. That was back in 2011. I also had an HSBC card I elected arb on as well. These folks avoided my arb election and took me to court anyway. I showed up in court and proved I elected arb to the lawyer on the case.I got the feeling he was just hoping I would'nt show and he would get a default judgement without me knowing. ( I should have countersued them for ignoring my arb request but did'nt have the ability to miss work again to come back to court ) The case was dismissed and they never did send it to arbitration.My checking account is the only way anyone can collect from a judgement and TN allows you to list it as an exemption up to $10,000. Its typed written right on the summons in plain black letters. Of course I can always close my checking account before arb or a court case and that would guarantee them nothing as well. I am struggling financially like a lot of of others and do feel horrible that I had to default on my debt. I will never have a other credit card again! I did try to work with all my my debtors before defaulting but none of them would accept the payments I could afford. I think its just awful how debt collectors use fear and scare tactics to try and make a buck so this is why I don't even answer the phone or respond to the letters. I have found that that when I do they just keep hounding me but if I ignore them they eventually sell the debt to someone else or back off because they realize they are getting nowhere with there threats and they move on to someone who responds. I like to be prepared though and now that I have my orginal agreement I can use it if I have to. 1 Link to comment Share on other sites More sharing options...
Torden Posted September 7, 2013 Report Share Posted September 7, 2013 Smart collectors would work with you and accept what you can pay, even if it doesn't cover the interest, just to keep you on the hook, and get something instead of nothing. Then once you've paid whatever for a while, sell the account as "actively paid so no SOL". Smart collectors? Oh wait, that's a contradiction. Link to comment Share on other sites More sharing options...
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