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Hi everyone, I am new to the board and this is my first post.  I am looking for some advice on how to proceed with two debts being collected on by Portfolio Recovery Associates.  The first debt was originally owned by HSBC before they were bought by Capital One and the account balance is $1,900.  The last payment was made sometime during 2013 and was later charged off.  The other debt was originally owned by Comenity Bank, the last payment was also in 2013 before it was charged off and the balance is $1,400.  I was not aware of what the debts were at first so I sent a debt validation letter to PRA.  So far they have "validated" only the Comenity Bank debt by sending me copies of 3 credit card statements, one showing the balance that they are requesting.  I am now worried sick that they will attempt to sue me for the debt as I am now trying to rebuild.  I have been reading a lot about junk debt buyers, settling, and arbitration but I am unsure as to what steps I need to take next or if I do nothing at all and just wait to see what they do.  I'm hoping someone can offer advice on what my options are and what I should do to attempt to protect myself from a judgement being placed on my CR.   Any advice?  Thank you in advance!:)

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9 hours ago, Rebuilder78 said:

I have been reading a lot about junk debt buyers, settling, and arbitration but I am unsure as to what steps I need to take next or if I do nothing at all and just wait to see what they do.

I would wait.  Your fears they will sue are well grounded.  TN has a 6 year SOL on credit card debt and with a very recent default PRA is likely to sue soon.  They have been aggressively filing as of late.    

The problem with arbitration is Capital 1 removed it from their card agreements in 2010.  Unless you opened the account prior to that with a survivability clause you won't be able to use arbitration against PRA on that account.

9 hours ago, Rebuilder78 said:

 I'm hoping someone can offer advice on what my options are and what I should do to attempt to protect myself from a judgement being placed on my CR.

There are only 3 ways to prevent a judgment from affecting you and your credit.  1)  you settle the matter before they sue.  2)  they never sue at all  and 3)  you defeat them in court or arbitration.

9 hours ago, Rebuilder78 said:

Any advice?

Yes, sit tight and in the mean time get a free consult with the one consumer attorney in TN:  http://www.barnettelawoffices.com/

He posts here as @TNConsumerLawyer and has a good track record of dealing with JDBs and the local law firms in TN that they use.  I would discuss what the cost would be of handling both cases so you are not fighting 2 different battles.  Statistics have shown that when a consumer hires a good consumer attorney that 70% or better of the time the JDB folds not wanting to have to prove their case in court.

If they sue you have already consulted him and can decide whether to pull the trigger and hire him.

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26 minutes ago, Clydesmom said:

I would wait.  Your fears they will sue are well grounded.  TN has a 6 year SOL on credit card debt and with a very recent default PRA is likely to sue soon.  They have been aggressively filing as of late.    

The problem with arbitration is Capital 1 removed it from their card agreements in 2010.  Unless you opened the account prior to that with a survivability clause you won't be able to use arbitration against PRA on that account.

There are only 3 ways to prevent a judgment from affecting you and your credit.  1)  you settle the matter before they sue.  2)  they never sue at all  and 3)  you defeat them in court or arbitration.

Yes, sit tight and in the mean time get a free consult with the one consumer attorney in TN:  http://www.barnettelawoffices.com/

He posts here as @TNConsumerLawyer and has a good track record of dealing with JDBs and the local law firms in TN that they use.  I would discuss what the cost would be of handling both cases so you are not fighting 2 different battles.  Statistics have shown that when a consumer hires a good consumer attorney that 70% or better of the time the JDB folds not wanting to have to prove their case in court.

If they sue you have already consulted him and can decide whether to pull the trigger and hire him.

My Capital One account was originally owned by HSBC but was later sold after my account was charged off.  I was not aware that Capital One was the provider until I received the verification from PRA.  My account was opened in 2003.  

Thank you for the advice and I will consult the consumer attorney as well as attempt to reach out to @TNConsumerLawyer for help as well.

As for the Comenity Bank debt, do you propose the same thing?  In their validation PRA sent me a copy of the credit card agreement that does include arbitration and JAMS is an option.  Do I wait to see what they do on this as well?  They seem to have more information on this account as they have sent me a few copies of statements and the credit card agreement, while they have not sent any support documentation for the HSBC account...at least not yet.

Thank you again!  I am a nervous wreck and have been thinking about this constantly.  

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@Rebuilder78

This is the website to  TNConsumerLawyer that Clydesmom  referenced.  He stays quite busy,   I would call him, and keep doing so until he or someone on his staff responds. A consultation is free and you are under no obligation.   He has helped many members here.  Yes, you can arbitrate these lawsuits, but it is easier and quicker to let a lawyer handle it for you.  From what I gather, his fees are reasonable.  But arbitration remains an option and it's free, but you will have to work at it, with help from the members here.

http://www.barnettelawoffices.com/

 

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2 minutes ago, Rebuilder78 said:

@debtzapper thank you for the response.  No lawsuit has been filed yet but I think I may have poked a beehive with the debt validation letter.  I did send @TNConsumerLawyer a message but I will give him a call tomorrow morning as you suggested.  

You definitely need to call.  He doesn't always have time to hang out here and answer PMs and often it can be weeks before those "contact us' email boxes are checked.

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Thank you @Clydesmom!  I have never had a lawsuit.  Capital One sued me a couple of years ago and I contacted the law office and paid the agreed settlement before the case went to trial.  The lawsuit was later dismissed with prejudice once I paid the last agreed installment.

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Ha! I fooled you all, I answered the PM the very same day I got it, lol!  Seriously, PRA is out of control and I just rarely even bother with them in a General Sessions Court. Rather, I sue them in Circuit Court (because it's cheaper than filing in USDC) for violating the Consent Order they entered into with the CFPB. If a prespective client has disputed the account trade line directly through the credit reporting agencies, then I can assert FCRA claims as well as additional FDCPA counts. I tend to stay away from TCPA claims because they then through the entire case in the abyss of MDL in California. 

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9 minutes ago, TNConsumerLawyer said:

Ha! I fooled you all, I answered the PM the very same day I got it, lol!  Seriously, PRA is out of control and I just rarely even bother with them in a General Sessions Court. Rather, I sue them in Circuit Court (because it's cheaper than filing in USDC) for violating the Consent Order they entered into with the CFPB. If a prespective client has disputed the account trade line directly through the credit reporting agencies, then I can assert FCRA claims as well as additional FDCPA counts. I tend to stay away from TCPA claims because they then through the entire case in the abyss of MDL in California. 

Excellent!  Nice to know you are still lurking around.  I try to point TN posters in your direction every chance I get.  Go get em!  I can't think of anyone more than PRA (okay, maybe Midland and LVNV; oh and maybe my boss) that needs to be put in their place.  

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1 hour ago, TNConsumerLawyer said:

Ha! I fooled you all, I answered the PM the very same day I got it, lol!  Seriously, PRA is out of control and I just rarely even bother with them in a General Sessions Court. Rather, I sue them in Circuit Court (because it's cheaper than filing in USDC) for violating the Consent Order they entered into with the CFPB. If a prespective client has disputed the account trade line directly through the credit reporting agencies, then I can assert FCRA claims as well as additional FDCPA counts. I tend to stay away from TCPA claims because they then through the entire case in the abyss of MDL in California. 

Jason,

I am glad you are still alive and well on this board.  We try to refer clients to you whenever we can.

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Thank you all for the referrals!  PRA is the absolute worst.  Very difficult to deal with.  Midland used to be fairly easy, but now I must sue them before they'll even speak to me.  Absurdity insofar as the results are the same before they made me sue them each and every time now.

Hope all is well and God bless!

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