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Advice regarding Midland/WWR lawsuit in Michigan

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My wife co-signed a Best Buy CC for her daughter in 2010 thru HSBC.  That account was purchased by Capital One in May 2012 and subsequently purchased by Citibank in September 2013.


The daughter claims to have paid the card in full in August 2013, but has no records or evidence of that payment and no account statements to prove the account was paid.  She also claims that she received no communication from Citibank in any form - no notice of purchasing the account, nor account statements.


The account was purchased from Citibank by Midland in June 2014.  My wife received an inquiry from Midland in Feb 2015 and we responded by requesting validation of debt.  They provided an account statement dated April 2014 showing the alleged outstanding balance, but no further documentation.  We responded by reiterating our request for supporting detail and received a response from WWR with minimal additional detail and threatened legal action.


In mid June, we received an additional letter from WWR notifying us of their intent to file a lawsuit.  They attached an unflied complaint which I have scanned, redacted and attached.  According to our local legal aid group, the lawsuit was filed on June 24, 2015 and a case number was assigned, but we have not yet been served.


I am trying to choose a best path of defense and prepare in advance of being formally served.  I would appreciate any suggestions and have a few specific questions -



1) We have had no interaction with Citibank - no payments, no charges, no statements or communications.  I found a Best Buy Citibank CC agreement online and it has an arbitration provision.  Should I request arbitration?  If so, would that be part of response to their complaint or a separate motion?


2) I am considering filing a Motion to Dismiss alleging a Lack of Standing based on failure to produce complete Bill of Sale, etc.  I won't know fully what they have submitted until we are actually served.  Thoughts?


3) Between the origination of the account (2010) and the current complaint, my wife and I married and she changed her name.  The materials to date have been in her prior last name.  Do we need to do anything regarding the name change?


4) Should I have any concern about the delay between the date of filing and no service yet?


Any advice on best path of defense would be appreciated.  Thank you







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They have everything they need to pursue.  If you have an agreement that states JAMS, I would elect now.  BUT read your agreement carefully, if they are filing in small claims court, then arb is out, they have in their agreements if it is in small claims, there is no right to arbitration.  If that is the case you would have to fight this the old fashioned way.


They don't need a bill of sale from HSCB to citi, they did not buy those accounts, it was an acquisition, they took them over.  Since you never paid anything to citibank, you may be able to use an arb agreement that was from HSCB if they have one.  If it is survivable, it won't have the small claims exception in it.

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