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being sued by junk debt collector


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We owed about $1,500 on a credit card account.  We fell on hard times and got behind, but honestly intended to continue paying.  When we attempted to get caught up, we learned that our account had been sold.  Attempted to negotiate a smaller amount and the account was sold again.  Again attempted to settle, starting at a very small offer, but fully expecting they would counter.  Not as smart as I thought I was...we are being sued in small claims court for $2,100.  I don't have $2,100.  I am in Iowa.  What should I do and what is likely to happen?  I'm scared.  Is it too late now to negotiate?  Should I call them?  Can anyone give me advice?  Thanks.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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1.  Plaintiff if CACH LLC

2.  John Bonewicz, P.C. is the lawyer

3.  Amount they claim owed $2,118.40

4.  Original creditor is HSBC Nevada N.A. & Affil.

5.  I was served in-person by deputy sheriff.

8.  I attempted to settle the debt.  Received a cure of default, which I ignored.

9.  I am in Polk County, Iowa

10.  Last time paid 6/13 (I believe)

13.  Asked for and received debt validation, at which time I made an offer, which was ignored.

15.  No interrogatory questionnaire.

16.  Documents received:  Case has been filed..., verification of account, affidavit of assignment, last statement, copy of letter from attorney

 

I assume I'm screwed.  Honestly, I am not questioning that I owe this money, but thought they would take a settlement since I just don't have it and figured they would see that something is better than nothing. So what do I do now?  Just answer it admitting to everything?  What will happen if I don't come up with the money?  I always expected to have to give them something, but wasn't expecting a lawsuit so suddenly without them even answering my offer or negotiating.

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I am new to this forum but have recently been sued myself. I'm in California so laws are different but hopefully someone who is familiar with Iowa law will chime in on this. I will say this tho…THe very first thing you absolutely must do is answer the summons. You prob'ly have 20 -30 days..it will say on your summons.  If you have a General Denial in Iowa that is the simplest way to answer. (Your complaint can"t be verified tho.) Most complaints are not verified. You can tell if it is verified because it will typically say so in the caption or there will be a verification statement at the end of the complaint. If you are willing to learn and put some work into this you can either win your case..(yes it happens a lot..read the winners Hall of Fame on this forum.) or actually get CACH to take much less than is owed.

 

​Just do some reading here.ask questions and try to find someone who is familiar with Iowa law on this forum. I hate to give you any specifics that wouldn't apply to your state. Most of all..don't freak out.

There is a way to handle this without just giving up and getting a judgement.

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1.  Plaintiff if CACH LLC

2.  John Bonewicz, P.C. is the lawyer

3.  Amount they claim owed $2,118.40

4.  Original creditor is HSBC Nevada N.A. & Affil.

5.  I was served in-person by deputy sheriff.

8.  I attempted to settle the debt.  Received a cure of default, which I ignored.

9.  I am in Polk County, Iowa

10.  Last time paid 6/13 (I believe)

13.  Asked for and received debt validation, at which time I made an offer, which was ignored.

15.  No interrogatory questionnaire.

16.  Documents received:  Case has been filed..., verification of account, affidavit of assignment, last statement, copy of letter from attorney

 

I assume I'm screwed.  Honestly, I am not questioning that I owe this money, but thought they would take a settlement since I just don't have it and figured they would see that something is better than nothing. So what do I do now?  Just answer it admitting to everything?  What will happen if I don't come up with the money?  I always expected to have to give them something, but wasn't expecting a lawsuit so suddenly without them even answering my offer or negotiating.

 

Clarification on #4:  Did Cach purchase this from HSBC or from Capital 1?  There may be some chain of ownership issues there that may allow you to beat this.

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You are absolutely correct.  Someone else had the  before these people.  We received a few letters from a law office (Allan C. Smith, P.C.), but they didn't say exactly who Mr. Smith represented.  Then when I tried to negotiate, we started getting letters from these people.  How to proceed?  Thanks for any help.

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I would recommend the arbitration strategy.  Check here:

 

http://www.creditinfocenter.com/community/forum/199-arbitration/

 

and also look on Debtorboards.com, in their arb section.

 

IMO, it's the best weapon against JDBs.  It's way too expensive for them, so they will give up rather than pay JAMS fees. 

 

Don't try to settle with them, don't talk to them, don't admit to the debt.  Look here for an appropriate card member agreement:

 

www.cardmemberagreements.org

 

Answer the summons, denying everything except your name and address.  Then file a Motion to Compel Arbitration with the court.   I know for a fact that CACH will not pay for arb.

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Thanks. I will look into arbitration.

 

I looked closely at all the items I was served.  The most alarming is an affidavit signed by HCBS stating that they are selling the debt to cach and it has the account number, as well as the amount on it.

 

I was served yesterday, 11/24.  At that time, the deputy stamped the papers.  Today I notice she stamp says "received 11/19."  I am unsure whether that means she received them on 11/19, or that she was serving them to me on that day.  I seems to make a difference because we are given only 20 days to respond and that would cut us down by almost a week.  Should I call her and question this?  Or would it be helpful as a technicality to just let it go?  My co-worker was there at the time (lovely) and I asked her to make a notation on her calendar of the date, just it case I needed to prove when we were served. 

 

I don't know anything about Capitol, but I admit I am confused.  All I know is they sold the debt and then I began receiving letters from several different law offices.  I requested validation and then attempted to negotiate with two of them; no response and now this.

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Since they were recieved after the transfer of owenership, they can easily use that fact to establish acknowledgment of the debt after sale which would remove any standing defenses.  SOL is obviously out, so yeah....unless you have an FDCPA violation somewhere, not good.

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I second the arbitration tactic.

 

You need to file an answer with the court within the correct time limit.  In your answer deny everything listed on the complaint (except for your correct name and address).

 

Above all, NEVER admit to anything at this time.  They will just steamroll you.

 

After your answer is filed, you will want to prepare and file a Motion to Compell Private Contractual Arbitration.  There are examples in the link posted above by @nobk4me

 

If the judge grants your motion, you have a 99%  change that CACH dismisses your case.  They hate to pay for arbitration.  It will cost them $5k minimum to arbitrate an account that they maybe paid $20 to HSBC for.

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Ok, my husband, and this debt is actually in his name, wants to go with arbitration and I am clueless.  Can you tell me what the following terms mean?

 

AAA

JAMS

MTC

 

Considering our naivete, do we need a lawyer?  Would a lawyer cost more than just paying this?  If we lose, about how much would the court costs be?  And how fast would we have to come up with this money?  Is it too late to try to settle this for a lower amount out of court?  If we agreed to pay and didn't have the money, what happens then?  After reading the arbitration items on this website, I am feeling that I am just not smart enough to do this. Help?

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AAA and JAMS are acronyms for two arbitration firms.  AAA typically will no longer do credit card cases because the creditors do not pay or cooperate.  JAMS is VERY expensive.  The goal by filing for JAMS is that you make it so expensive they drop the whole thing not that you actually arbitrate.  It may or may not work.  

 

MTC = Motion to Compel 

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  • 2 weeks later...

Read through my letter to a (JDB). Read every communication very carefully. My came with the letter head "The Law Offices of" none of those listed are licensed attorney's first voilation there. Second, in my letter they did not state my 30 days to validate second violation. Third the proof they sent did not include them as owning the debt and also states it is not essentially transferable third violation. Sent just an old statement which not the correct proof to prove i owed the debt. Fourth violation. Besides the cover letter they sent what looks like a judgment or future judgement but was not signed by a judge. Just watch and do not commicate by phone with them and consult with someone.They are snakes and will befriend you and give you advice and lie to you and use scare tactics. est.jdb letter..docx

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Third the proof they sent did not include them as owning the debt and also states it is not essentially transferable third violation. Sent just an old statement which not the correct proof to prove i owed the debt. Fourth violation. 

 

NOTHING in the FDCPA requires they send you proof of anything as part of DV with a consumer.  It is NOT a violation.  ALL they are required to provide is the name/address of the original creditor and the amount they allege you owe.  If the statement copy contains that information then they are NOT in violation at all.

 

You MIGHT have a violation if they did not include language stating you have the right to dispute the debt.  They are NOT required to prove you owe the debt as part of validation.  They are only required to provide that if they sue you AND the court requires it.  PERIOD.

 

I read that letter you sent them and quite frankly it is nothing short of a white hot mess and likely was ignored because it makes no sense. If you accomplished anything with it, it was convincing them you have no clue what you are doing.  I would not recommend sending a letter like that to anyone.

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  • 8 years later...
On 11/26/2014 at 11:37 AM, fisthardcheese said:

I second the arbitration tactic.

 

You need to file an answer with the court within the correct time limit.  In your answer deny everything listed on the complaint (except for your correct name and address).

 

Above all, NEVER admit to anything at this time.  They will just steamroll you.

 

After your answer is filed, you will want to prepare and file a Motion to Compell Private Contractual Arbitration.  There are examples in the link posted above by @nobk4me

 

If the judge grants your motion, you have a 99%  change that CACH dismisses your case.  They hate to pay for arbitration.  It will cost them $5k minimum to arbitrate an account that they maybe paid $20 to HSBC for.

 

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I'm on disability! we'll 1st a process server trespassed on my land I had signs up. it is on video .. I got the summons .. replied not guilty. and they said u worked at john deere and that I was not disabled ..so they lied. I am disabled from working at deere .since 2016. they had all the paperwork except originals .. all copies. I watched videos on how to beat them. I sent lots  of documents . telling them I was on disability. and wanted Arbitration.. judge said no because I was to late summons s was filed. she was impatient with me . didn't care about any  documents . said they are there to see if it is my debt or not . she said they had papers with my name and address that's enough she said ..didn't care that I was now on disability. my credit card was through elon financial sold to absolute resolution. she didn't care that to give me summons they trespassed and broke iowa law.. so don't believe all those videos .. it's not quite like that. I have another junker collector now sent me letter so I am going to deny first and then ask for proof. and then arbitration before the year is up on right to cure. because waiting after summons does no good .judge also awarded them full amount even though I could prove they were wrong. plus 6% interest and all court costs  . make sure you don't get a ..... that is on the rag that day.get a lawyer if your going to court. the creditor was one the phone in court and I could not understand anything they said ... next there are places you can complain to against collectors.  use them.. and look up any lawsuits that collector may have or their lawyer too. and file against them. next   get ahold of state officials like grassley , renyolds and Ernst.  and have laws changed that bans junk debt collectors to buy a debt for  .40 cents and make hundreds of dollars off people who are poor or on disability. this is unmoral. and unamerican.

 

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un-American. think if the collector has a good case against you, he would not resell it to another collector. if he don't have much info on your debt then he may want to sell it and dump it with another collector .  not sure but that would be logical.

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1 hour ago, ciy said:

I'm on disability! we'll 1st a process server trespassed on my land I had signs up. it is on video .. I got the summons .. replied not guilty. and they said u worked at john deere and that I was not disabled ..so they lied. I am disabled from working at deere .since 2016. they had all the paperwork except originals .. all copies. I watched videos on how to beat them. I sent lots  of documents . telling them I was on disability. and wanted Arbitration.. judge said no because I was to late summons s was filed. she was impatient with me . didn't care about any  documents . said they are there to see if it is my debt or not . she said they had papers with my name and address that's enough she said ..didn't care that I was now on disability. my credit card was through elon financial sold to absolute resolution. she didn't care that to give me summons they trespassed and broke iowa law.. so don't believe all those videos .. it's not quite like that. I have another junker collector now sent me letter so I am going to deny first and then ask for proof. and then arbitration before the year is up on right to cure. because waiting after summons does no good .judge also awarded them full amount even though I could prove they were wrong. plus 6% interest and all court costs  . make sure you don't get a ..... that is on the rag that day.get a lawyer if your going to court. the creditor was one the phone in court and I could not understand anything they said ... next there are places you can complain to against collectors.  use them.. and look up any lawsuits that collector may have or their lawyer too. and file against them. next   get ahold of state officials like grassley , renyolds and Ernst.  and have laws changed that bans junk debt collectors to buy a debt for  .40 cents and make hundreds of dollars off people who are poor or on disability. this is unmoral. and unamerican.

 

No lawsuit against any creditor, collector or their attorney is going to matter in anyones case. You can't use any of that as a basis for suing any of them.

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5 hours ago, ciy said:

I'm on disability!

As far as I know, SSDI benefits cannot be garnished by creditors including credit card companies to satisfy a debt. Thanks to federal regulations, two months of Social Security funds that are directly deposited into your account usually get automatic special protection from garnishment by judgment creditors.

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5 hours ago, ciy said:

we'll 1st a process server trespassed on my land I had signs up. it is on video ..

Delivering a summons or subpoena is a function of the court and not subject to trespassing warnings or charges.  The video of them delivering the summons does not help you at all in claiming "trespassing" but it does serve to confirm service.

5 hours ago, ciy said:

I am disabled from working at deere .since 2016. they had all the paperwork except originals .. all copies. I watched videos on how to beat them. I sent lots  of documents . telling them I was on disability. and wanted Arbitration.. judge said no because I was to late summons s was filed. she was impatient with me . didn't care about any  documents . said they are there to see if it is my debt or not . she said they had papers with my name and address that's enough she said ..didn't care that I was now on disability. my credit card was through elon financial sold to absolute resolution. she didn't care that to give me summons they trespassed and broke iowa law..

Being on disability IS NOT A LEGAL DEFENSE to a lawsuit.  It prevents them from levying your bank accounts if the only funds in there are disability funds and don't exceed the exempted amount but it does not prevent the court from entering a judgment against you.  You can't just stand in court and demand arbitraiton you have to file the proper motion with the court.  The judge is 100% correct that the only purpose of the trial is to determine if it is your debt.  If it is she is legally bound to enter a judgment.  End of discussion on that.  Not going to explain again that it isn't trespassing to serve you with a summons.

5 hours ago, ciy said:

I have another junker collector now sent me letter so I am going to deny first and then ask for proof. and then arbitration before the year is up on right to cure.

They don't have to provide you with proof of anything until court or arbitration.  There is only one state with a "right to cure" and that is South Carolina.  They will likely just go ahead and sue you.  Good luck.  Based on your post(s) you don't know what you are doing and will get steam rolled again.

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