kenpo1980

Lawsuit Filed - No Service Yet - What Should I do?

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Hi all,

 

CACH recently filed a suit with me in California. The reason I know this is because someone came to my home on Saturday when I was gone and based on what my wife told me I figured it was probably a process server so I did a dockest search and found the case. The case was filed a couple of weeks ago, and I have no idea what the debt is for, but I am pretty confident it is probably for less than $5000. So what I am wondering is if I should do anything at this point or just wait to be served.

 

I am in the legal industry and I do understand that they can't actually do anything in terms of getting a judgment until they actually have some kind of service so should I just wait until that happens and then respond or should I do something proactive now.

 

My guess is that CACH probably paid a fraction of what my original debt was worth and so my assumption is that if I offer them something that at least covers their costs ,and makes them a little bit  of money, they will go away but I don't want to go down that road if it will open me up to possibly paying more and this does not go away.

 

Just as a side note here, I honesltly would have no problem trying to figure a way to clearing the complete debt down the road, if I can, but my understanding is that once things get to companies like CACH there really is no upside to this in terms of your credit report. Basically you are just providing companies like CACH with a windfall and you stil have this charge off hanging out on your credit report for seven years.

 

Thanks!

 

 

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Things are changing in the credit scoring industry however where settling a debt will make a score look better than if a debt is not settled, even if it sits on your report. This change is in response to the critics (and the collection industry) that rightfully so says that it is stupid to have a system where a settlement looks worse than letting the debt slide.

In any case, you can wait to be served. I am sure the process server must try more than once. I would also think however that your wife could accept service and if so, I would tell her that if the person returns, accept the papers. You can also go to the courthouse and get served yourself through that method.

Once served, you can decide if you want to defend the case or settle. That decision is up to you.

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Look into the arbitration strategy.  It will cost CACH a lot of money and they won't pay for it.

 

If there is an arbitration clause in the OC's cardmember agreement, you can make this go away by paying them nothing, IMO.

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Thanks for the responses. I think I will probably wait for CACH to serve me and just decide what to do then. Just from the research I have been doing it kind of seems that what these JDBs are relying on is that debtors will either not respond, which will result in default judgment,  or panic and try to settle - they are playing a numbers game.

 

Also, I would like to think that the credit industry would start to make some changes that encourage paying back debt because i am one of those people that would actually like to pay back my debt when I right my financial ship. The problem is that once things go south  they make it very hard to justify to trying to make things right again.

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If you start talking to CACH about settling this early it will be like chumming shark infested water. I would not recommend settling with them at all, but if you do; they will only respond well after a fight. Right now they will see it as a weakness and an indicator that you can and will pay. CACH is by far the worst of the bottom feeders and cannot be trusted.

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When I was sued by CACH, it took them five months to serve me. It really makes no sense because I've lived in the same house for 12 years and they know where to find me. LOL! Use this time to draft your answer, discovery requests, demand for bill of particulars (since you live in California!), and possible motions to compel, preclude, etc.

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If you are going to wait for actual service, you could have someone go to the courthouse (make sure they are an uninterested party) for you and get the particulars of the case so that you can start drafting your answer and discovery.

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