skydiver32

Advice Needed

Recommended Posts

Looking for advice with respect to the infamous JDB Portfolio Recovery. The amount is $1,580 and the OC sold the account to PRA, so the only one that is reporting is PRA and of course they are reporting on a regular basis. The DOFD is 3/2015 and the SOL is 3 years, so it is still within the SOL for the state that I am in. I am military, so there is no telling what state I will be in next year (maybe new SOL). I sent PRA a GW letter two months ago looking for a PFD (I know I know) or some form of settlement agreement, but haven't received anything. They call regularly, but I don't answer the phone and I will not talk to JDBs. My previous DV that I received awhile back consisted of two account statements, which seems to be the norm. I really want to get this behind me and move on with my life. Recommendations??

Share this post


Link to post
Share on other sites

They are likely to file suit in Magistrate court.  The Dell card agreements have a private arbitration clause in them.  That works in your favor. PRA will not arbitrate because it would cost them 5x what they are trying to get from you to complete the arbitration process and they can't stick you with the costs like they can in court. 

Get a copy of the Dell card agreement from the year that your account was last in good standing.  See what the arbitration clause says.  If they file suit you will file an answer denying their claims and then go to court armed with a Motion to Compel Arbitration and tell the attorney you intend to use the arbitration clause.  They will likely agree to dismiss the case instead.

If you want to be pro-active you can try to catch them in a consumer law violation and file an arbitration claim against them for that.  If they are calling your cell phone, that is a good place to start with TCPA violations.  They aren't supposed to sue in court once you file in arbitration, but they may try.  If they do, that is just another violation to add to your claims against them.  Once you have claims against them filed in arbitration, you can attempt to negotiate a settlement with them that includes you dropping your claims in exchange for a release of all liability and removal of PRA from all credit reports.  That would accomplish your goal of being done with this for good.

Share this post


Link to post
Share on other sites

Thanks for the great information. Unfortunately, I'm not well versed in arbitration and I have never been sued, so really don't want it to go that far. Besides the usual reporting inaccuracies on my CRs and the one time that they called my cellphone while I was at work, I don't feel there is much to go on. It sucks, but I don't see any other options than to wait it out or pay it.

Share this post


Link to post
Share on other sites

No one wants to deal with court or arbitration. Especially the first time.  But it's not going to go away on its own and since you haven't been sued yet, you have time to read about it here and go into with with more knowledge about it than anyone else in court that day (including some of the attorneys).

If they are reporting inaccurate information on your credit reports, then that is a good starting point.  I would send a simple dispute letter to the CRAs to dispute the inaccurate information.  If they respond saying the information is verified by PRA, then I would file an arbitration claim against them asking for $1,000 per incorrect information per report.  I would add another $1500 claim for calling my cell phone in violation of the TCPA.

When they are facing your claims of about $3500 plus arbitration fees of at least another $5k and are only trying to collect $1500 from you, odds are very good that they will agree to a mutual walk-away (you drop your arbitration and they agree to wipe out your alleged debt).

This is essentially beating them to the punch and "Suing" them (in JAMS arbitration) before they can sue you.  This gives you the negotiation leverage to make it all go away in the end with you paying $0.

Of course, you have the option to wait until they sue you and still force them to go to arbitration, where they will likely still drop everything instead of actually paying for the arbitration anyway.

Share this post


Link to post
Share on other sites
On ‎10‎/‎16‎/‎2017 at 5:48 AM, fisthardcheese said:

No one wants to deal with court or arbitration. Especially the first time.  But it's not going to go away on its own and since you haven't been sued yet, you have time to read about it here and go into with with more knowledge about it than anyone else in court that day (including some of the attorneys).

If they are reporting inaccurate information on your credit reports, then that is a good starting point.  I would send a simple dispute letter to the CRAs to dispute the inaccurate information.  If they respond saying the information is verified by PRA, then I would file an arbitration claim against them asking for $1,000 per incorrect information per report.  I would add another $1500 claim for calling my cell phone in violation of the TCPA.

When they are facing your claims of about $3500 plus arbitration fees of at least another $5k and are only trying to collect $1500 from you, odds are very good that they will agree to a mutual walk-away (you drop your arbitration and they agree to wipe out your alleged debt).

This is essentially beating them to the punch and "Suing" them (in JAMS arbitration) before they can sue you.  This gives you the negotiation leverage to make it all go away in the end with you paying $0.

Of course, you have the option to wait until they sue you and still force them to go to arbitration, where they will likely still drop everything instead of actually paying for the arbitration anyway.

In the OC charge card agreement, it states "Arbitration clause does not apply to active duty service members". Being an active duty service member, how does that affect the situation either way?

Share this post


Link to post
Share on other sites

Lots of great advice here that generally works with PRA on their low dollar suits. What I'd like to add as you eluded to moving often, it's YOUR job to check for suits being brought against you. PRA is notorious for mailing to known bad addresses (experienced first hand) and I've read about them going as far to using incorrect spellings or maiden names. Their trying to get a default judgement against you, that's the end game. They'll do whatever they can to get there so you just need to watch your back. Every month, until that alleged debt is time-barred it's your job to check.

On 10/19/2017 at 1:19 PM, skydiver32 said:

In the OC charge card agreement, it states "Arbitration clause does not apply to active duty service members". Being an active duty service member, how does that affect the situation either way?

That's more about forced arbitration.. You'll be the one requesting arbitration here.

Share this post


Link to post
Share on other sites
On 10/19/2017 at 1:19 PM, skydiver32 said:

In the OC charge card agreement, it states "Arbitration clause does not apply to active duty service members". Being an active duty service member, how does that affect the situation either way?

I would have to read the full agreement to be sure, but if you filed arbitration first, I dont think it would come into play. I doubt they are doing to do a background check to see if you are active duty or not.  They MAY try to raise that issue if it goes to court first and you are trying to push them into arbitration, as we see them try every trick they can come up with to worm out of going to arbitration (including lying and suggesting things like arbitration doesn't apply when it does, etc).

If it gets to Magistrate Court in GA, then filing your counter claims for TCPA and FCRA violations against them instead of pushing arbitration usually works just as well.  They would likely agree to a mutual dismissal when you get to court and have pending counter claims against them.

Share this post


Link to post
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.