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Elena

OC deleted account from CR, but JDB/attorney tries to collect

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Hello, everyone :)

I've been reading your forum for over a year and I am forever grateful to everyone posting useful info as it helped me a lot (can't go into details, signed NDA).

But here's what I am dealing with today:

I received a letter from CA on the account I last paid in 2012.

OC sold the account and this is JDB#4 I am dealing with with. Others went away after my first DV letters,

but this one decided to stick around and answered my letter providing OC name, account balance, last payment date, etc.

New "creditor" is JH Portfolio, letter is from a law firm acting on their behalf.

I pulled my credit report today and found that OC deleted the account JDB is trying to collect on. It does not exist on my CR (all three agencies).

Question: does the fact that account was deleted by OC change how I deal with JDB?

This is something I've never dealt with before, so I need your advice.

What would you, guys and gals, do?

 

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no, it has no bearing even if the OC is no longer reporting.  What is the  SOL in your state?  How much is it for? And who was the OC?

If you want them to go away, and your OC account has an arbitration agreement, I would send them a letter back stating "I dispute this debt. I have elected priviate contractual arbitration in relation to  this debt.  If any action is to be taken, pleas file with JAMS per the credit card agreement"

If they then sue you in court, you have good affirmative defenses, a refusal by them to arbitrate, and can elect arbitration then.  They won't go--unless the debt is upwards of 20K, and even then that is iffy.

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13 hours ago, Elena said:

Question: does the fact that account was deleted by OC change how I deal with JDB?

No but it isn't unusual that this happens.  One of the best consumer weapons in the past was filing counter claims when a JDB sues over the account.  Now when a creditor sells a bad debt portfolio many creditors are requiring that the OC delete the trade line to reduce those potential claims.  

 

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Thank you, ladies.

My initial thought was to reply to their letter and file with JAMS right away, but I like shellieh98's suggestion of putting the ball in their court and waiting to see if they react.  I'll do that.

Amount owed is about 20K, OC - Citi, SOL - 6 years, two more years until it expires.

P.S. I just thought of something else: the card agreement says "...party filing the arbitration must chose the arbitration firm".

If I don't file, but wait to see if JDB does, would they be able to file with AAA instead of JAMS?

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Yes, so you might be better off to file in Jams.  If they don't play, and Jams closes the case, I think you would be safe from a suit.  Study up, they might bite for 20k.  Read ways that will let you drag it out.  Most jdbS that do go to Arb will quit soon after, or they all end up settling.

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If this were me and they were sending letters from a law firm, I would go ahead and file in JAMS.  As it sits right now, they are on auto pilot.  They sent a letter, you DV and they send their response.  They probably have an automated computer system that may send out another letter or may auto-dial your phone number a few times and then, whenever the timer goes off (for however long they set theirs for), the computer system likely automatically e-files a case in court.  Which means, it's possible that just waiting to see what they do next could mean you are served a lawsuit from them next.  As long as you are aware and still are okay waiting, then that's perfectly fine.  Personally, if I have a heads up on an account that large, I would just file in JAMS to avoid the hassle of having to get a MTC filed and granted, plus, as a bonus it also likely gives you a nice FDCPA violation when you file in JAMS and they let the auto pilot continue and sue you anyway.

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9 hours ago, shellieh98 said:

If they don't play, and Jams closes the case

Citi like AMEX is one of the few creditors that will follow a consumer into arbitration no matter what the cost.  They stopped suing for some time after being busted on their documentation but that has changed and they are back to pursuing the debt claims.  On a debt this high I would expect them to arbitrate.  

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1 hour ago, Clydesmom said:

Citi like AMEX is one of the few creditors that will follow a consumer into arbitration no matter what the cost.  They stopped suing for some time after being busted on their documentation but that has changed and they are back to pursuing the debt claims.  On a debt this high I would expect them to arbitrate.  

a JDB#4 owns the debt, not the OC.

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Just now, shellieh98 said:

a JDB#4 owns the debt, not the OC.

Then I would file with JAMS because they will likely cave.

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Thank you all, very much, for the advice.

Fisthardcheese, thanks for the tip.

I am going to file with JAMS.

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