RR2HTX

Pending suit from PRA-haven't been served yet

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I have received several letters from different attorney's stating that Portfolio Recovery Associates has filed in civil court against me.  I have not been served yet, but I think the process server tried to do so earlier.  I work from home so I do not answer the door when it is someone I do not know especially when I am home alone.  They are suing me for a care credit account that was assigned to them for collections in Jan of 2014 for $928.  I looked at my credit report and last date of payment to care credit  was 5/2013.   Can you please tell me how I need to proceed?   I live in Harris County, TX (Houston).  Do I need to send them a debt validation letter?

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1 hour ago, RR2HTX said:

Do I need to send them a debt validation letter?

It is too late for that.  They have filed suit, once that happens DV is pointless they can ignore it.

1 hour ago, RR2HTX said:

Can you please tell me how I need to proceed?

Get a copy of the care credit agreement and see if arbitration is an option.  If it is file a Motion to Compel private contractual arbitration.

 

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15 minutes ago, Clydesmom said:

Get a copy of the care credit agreement and see if arbitration is an option.  If it is file a Motion to Compel private contractual arbitration.

 

Here is the information on arbitration from the agreement I found online it is from 2014.  So do I file the motion for private contractual arbitration with care credit or with PRA??

 

RESOLVING A DISPUTE WITH ARBITRATION
PLEASE READ THIS SECTION CAREFULLY. IF YOU DO NOT REJECT IT, THIS SECTION WILL APPLY TO YOUR ACCOUNT, AND MOST DISPUTES BETWEEN YOU AND US WILL BE SUBJECT TO INDIVIDUAL ARBITRATION. THIS MEANS THAT: (1) NEITHER A COURT NOR A JURY WILL RESOLVE ANY SUCH DISPUTE; (2) YOU WILL NOT BE ABLE TO PARTICIPATE IN A CLASS ACTION OR SIMILAR PROCEEDING; (3) LESS INFORMATION WILL BE AVAILABLE; AND (4) APPEAL RIGHTS WILL BE LIMITED.
• What claims are subject to arbitration
1. If either you or we make a demand for arbitration, you and we must arbitrate any dispute or claim between you or any other user of your account, and us, our affiliates, agents and/or providers that accept the card or program sponsors if it relates to your account, except as noted below.
2. We will not require you to arbitrate: (1) any individual case in small claims court or your state’s equivalent court, so long as it remains an individual case in that court; or (2) a case we file to collect money you owe us. However, if you respond to the collection lawsuit by claiming any wrongdoing, we may require you to arbitrate.
3. Notwithstanding any other language in this section, only a court, not an arbitrator, will decide disputes about the validity, enforceability, coverage or scope of this section or any part thereof (including, without limitation, the next paragraph of this section and/or this sentence). However, any dispute or argument that concerns the validity or enforceability of the Agreement as a whole is for the arbitrator, not a court, to decide.
• No Class Actions
YOU AGREE NOT TO PARTICIPATE IN A CLASS, REPRESENTATIVE OR PRIVATE ATTORNEY GENERAL ACTION AGAINST US IN COURT OR ARBITRATION. ALSO, YOU MAY NOT BRING CLAIMS AGAINST US ON BEHALF OF ANY ACCOUNTHOLDER WHO IS NOT AN ACCOUNTHOLDER ON YOUR ACCOUNT, AND YOU AGREE THAT ONLY ACCOUNTHOLDERS ON YOUR ACCOUNT MAY BE JOINED IN A SINGLE ARBITRATION WITH ANY CLAIM YOU HAVE.
If a court determines that this paragraph is not fully enforceable, only this sentence will remain in force and the remainder will be null and void, and the court’s determination shall be subject to appeal. This paragraph does not apply to any lawsuit or administrative proceeding filed against us by a state or federal government agency even when such agency is seeking relief on behalf of a class of borrowers, including you. This means that we will not have the right to compel arbitration of any claim brought by such an agency.
• How to start an arbitration, and the arbitration process
1. The party who wants to arbitrate must notify the other party in writing. This notice can be given after the beginning of a lawsuit or in papers filed in the lawsuit. Otherwise, your notice must be sent to Synchrony Bank, Legal Operation, P.O. Box 29110, Shawnee Mission, KS 66201-5320, ATTN: ARBITRATION DEMAND. The party seeking arbitration must select an arbitration administrator, which can be either the American Arbitration Association (AAA), 1633 Broadway, 10th Floor, New York, NY 10019, www.adr.org, 1-800-778-7879, or JAMS, 620 Eighth Avenue, 34th Floor,
New York, NY 10018, www.jamsadr.com, 1-800-352-5267. If neither administrator is able or willing to handle the dispute, then the court will appoint an arbitrator.
2. If a party files a lawsuit in court asserting claim(s) that are subject to arbitration and the other party files a motion with the court to compel arbitration, which is granted, it will be the responsibility of the party asserting the claim(s) to commence the arbitration proceeding.
3. The arbitration administrator will appoint the arbitrator and will tell the parties what to do next. The arbitrator must be a lawyer with at least ten years of legal experience. Once appointed, the arbitrator must apply the same law and legal principles, consistent with the FAA, that would apply in court, but may use different procedural rules. If the administrator’s rules conflict with this Agreement, this Agreement will control.
4. The arbitration will take place by phone or at a reasonably convenient location. If you ask us to, we will pay all the fees the administrator or arbitrator charges, as long as we believe you are acting in good faith. We will always pay arbitration costs, as well as your legal fees and costs, to the extent you prevail on claims you assert against us in an arbitration proceeding which you have commenced.
• Governing Law for Arbitration
This Arbitration section of your Agreement is governed by the Federal Arbitration Act (FAA). Utah law shall apply to the extent state law is relevant under the FAA. The arbitrator’s decision will be final and binding, except for any appeal right under the FAA. Any court with jurisdiction may enter judgment upon the arbitrator’s award.

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41 minutes ago, RR2HTX said:

So do I file the motion for private contractual arbitration with care credit or with PRA??

You file with PRA.  CareCredit is no longer in the picture.  PRA basically as an assignee has to abide by the terms of the account agreement for the account(s) they bought.

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Howdy,

The agreement that OP posted says:

 

16 hours ago, RR2HTX said:

• What claims are subject to arbitration
1. If either you or we make a demand for arbitration, you and we must arbitrate any dispute or claim between you or any other user of your account, and us, our affiliates, agents and/or providers that accept the card or program sponsors if it relates to your account, except as noted below.
2. We will not require you to arbitrate: (1) any individual case in small claims court or your state’s equivalent court, so long as it remains an individual case in that court; or (2) a case we file to collect money you owe us. However, if you respond to the collection lawsuit by claiming any wrongdoing, we may require you to arbitrate.

I think they crafted this cleverly on purpose, because while it says "we will not  REQUIRE you to....", it does not actually say that you are not permitted to arbitrate that. 

Wheels up,

Stick

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@stick&rudder

The section to which you referred may be the class action exception.   In other words, if you file a claim just for yourself (not for a class) in small claims and it remains in small claims, they can't require you to arbitrate.

 

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8 hours ago, BV80 said:

@stick&rudder

The section to which you referred may be the class action exception.   In other words, if you file a claim just for yourself (not for a class) in small claims and it remains in small claims, they can't require you to arbitrate.

 

No, the underlined text specifies that if the creditor sues the consumer for money that the consumer owes the creditor, that the creditor will not require the consumer to go through arbitration.  This simply means that the creditor agrees NOT to invoke arbitration themselves if they sue you to recover a debt you have not paid them.  That's not class action.  If you file a claim yourself in small claims court, they cannot require you to arbitrate, but this also says that if THEY sue YOU to recover an unpaid debt, they also cannot require you to arbitrate.  But that does not mean that you cannot use arbitration in that case, it only means they cannot force you to.  I suspect they did that because they would rather sue the consumer and save themselves the money of arbitration.  But the OP can still use arbitration according to that wording, in my opinion.

Wheels up, 

Stick

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Okay I was served  my papers on March 11th.  I have also contacted the lawyer who is suing me and worked out a payment schedule for  a settlement offer.  How do I file an answer to the suit and what do I say in regards to the payment plan????

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