Jump to content

Call from attorney RE: Rapid Cash


tiger0912
 Share

Recommended Posts

Ashamed to say I was foolish and desperate enough a few years ago to get into the PDL cycle. I thought I had either paid or settled with everyone over the past couple of years, but I must have missed one to Rapid Cash. I started with a payday loan cycle with them but they offered me an installment loan. Balance is almost $2500 based on what I've found in my emails.

My daughter picked up a call on our house line Friday from a local attorney. Said he was calling regarding Rapid Cash, that it was very important I call him back ASAP. I tried looking online to see if anything had been filed but the court's website is down. Worried I'm about to be sued, especially since the SOL will be up in less than a year.

Any ideas on what to do? Arbitration? Offer to settle for a smaller amount? I can't afford $2500 in a lump sum and don't want to get garnished.

Thanks for any advice you can give!

Link to comment
Share on other sites

"Any ideas on what to do? Arbitration? Offer to settle for a smaller amount? I can't afford $2500 in a lump sum and don't want to get garnished."

 

First and foremost google the name of the lawyer and see if he even exists.  The PDL collection scams abound.  Second: is this a store front PDL or internet?  The reason is the internet companies rarely if ever sue because they often are not in compliance with state laws.

 

As for arbitration:  not all contracts have that as an option and if the loan agreement you signed does not they don't have to arbitrate and you cannot force them to.

 

If they can still sue you they are unlikely to settle for less than 80% or the full amount.  Why would they if they can sue you for the entire amount and post judgment interest?

Link to comment
Share on other sites

I googled the attorney's name and it is a legitimate firm. This was a storefront PDL. Still looking for my copy of the agreement (I know I have it; just haven't been able to locate it among my boxes) but I did find on their website their arbitration agreement. If arbitration is an option for me, would that be better than trying to negotiate a settlement out of court? I'm not looking to avoid paying my debt - just trying to avoid a garnishment.

Link to comment
Share on other sites

First thing you do is DV the attorney. They must validate prior to going to court so that should buy you some time. Odds are, they will answer but it still gives you a chance to scrape some money together. Once they answer the DV, then you demand arbitration according to the agreement. If you have to get it started, prepare the filing and show it to them. Give that about 1 week and then send a 3rd letter saying that in the interest of time and expense, you are willing to settle with a lump sum settlement offer you can do.  The worst is they won't accept it BUT I am betting they will because it will cost them more than $2500 to go through JAMS and I bet the original debt was no where near $2500.

Link to comment
Share on other sites

 I'm not looking to avoid paying my debt - just trying to avoid a garnishment.

 

I would be totally ok with it if you were simply trying to avoid paying a debt.  Companies - especially big banks - do this all the time, so why shouldn't you?  Aside from that, I am sure you have already paid back more than double or tripple the initial loan amount anyway and most of the PDL places charge an interest rate that could be considered illegal or unconsionable at best.

 

If the contract lists JAMS as an arbitration option, I would file with JAMS and pay the $250 JAMS filing fee (or less if the contract says they will pay some or all of your filing fees).  This is likely the only amount you will need to pay.  After that, I would be looking for their attorney to agree to drop this completely in exchange for you dropping the arbitration claim.

Link to comment
Share on other sites

Yes, the amount is now much higher than the initial amount. I made payments for months before defaulting, and the interest rate was 400% on this loan (I know, I know...)

I would be totally ok with it if you were simply trying to avoid paying a debt.  Companies - especially big banks - do this all the time, so why shouldn't you?  Aside from that, I am sure you have already paid back more than double or tripple the initial loan amount anyway and most of the PDL places charge an interest rate that could be considered illegal or unconsionable at best.

 

 

 

 

Well, I was served this morning so I know it's too late to DV now. Do I file a Motion to Compel Arbitration as my response? I definitely do not want them to file a SJ against me. I've reviewed the arbitration clause some more, and it states that there is a pre-dispute resolution procedure. I am supposed to give them a claim notice "providing at least 30 days' written notice of the claim and explaining in reasonable detail the nature of the claim and any supporting facts, and a reasonable good faith opportunity to resolve the claim on an individual basis without the necessity of a proceeding." So I suppose that means I need to notify them in writing in addition to the Motion to Compel that I am going to file a claim with JAMS and that I am open to settling this claim out of court? 

 

Again, I just want to avoid a summary judgment and garnishment. I looked up some of their other cases in my county online and it looks like everyone who had a closed case either had a default judgment against them or they had a stipulated judgment for an amount higher than what Rapid Cash had even sued for (roughly $600-700 more). How would that even work - does that still involve a garnishment? And of course, that's ignoring the fact that it seems like highway robbery. There were a few cases (less than 5) which showed that they had been served with the summons, and then a dismissal filed within about 30 days give or take, and I'm not sure if those were people who were able to negotiate it down, or if it was people who paid the debt in full to make it go away. I definitely can't afford to pay the amount they've sued me for in full in 30 days.

Link to comment
Share on other sites

If it was me, I would file with JAMS ASAP and then tell them that you have applied for arb with JAMS. They will throw a fit and try to stop you, in the least to get it through AAA instead. So, get on it and then inform them in the reply that you have done so. You may have to file an MTC, so be aware of that.

Link to comment
Share on other sites

I would forget the 30 days notice for these reasons:  Some contracts specifically say that if a lawsuit has been filed, then a motion or response through court serves as the arbitration notice.  If your contract does not specifically say this, I would argue that the reasoning still applies.  Your MTC to the court will be their 30 days notice of arbitration.  I would just go ahead and answer their complaint with my MTC and then file with JAMS as soon as I could.

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

 Share

×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.. For more information, please see our Privacy Policy and Terms of Use.