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Sued by Cavalry


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Being sued by Cavalry for $4,000. I'm not even sure what I'm suppose to do at this point, I know I buried my head in the sand, and am scrambling to read as much as possible now. 

I've attached a copy of the complaints, not sure how I'm suppose to answer, and is there a format I need to follow for it?

I've read about arbitration, I looked up my agreement from last time of alleged last payment for Citibank. It says arbitration is through AAA. It also says individual claims filed in small claims court are not subject to arbitration. 

1. Who is the named plaintiff in the suit?

Cavalry SPV I, LLC

3. How much are you being sued for?

4. Who is the original creditor? (if not the Plaintiff)

5. How do you know you are being sued? (You were served, right?)

Served

6. How were you served? (Mail, In person, Notice on door)

In person

7. Was the service legal as required by your state?
Yes

Process Service Requirements by State - Summons Complaint

8. What was your correspondence (if any) with the people suing you before you think you were being sued?

None

9. What state and county do you live in?

10. When is the last time you paid on this account? (looking to establish if you are outside of the statute of limitations)

11. When did you open the account (looking to establish what card agreement may be applicable)?

12. What is the SOL on the debt? To find out:

Statute of Limitations on Debts

13. What is the status of your case? Suit served? Motions filed? You can find this by a) calling the court or B) looking it up online (many states have this information posted - when you find the online court site, search by case number or your name).

I was served papers, I haven't taken any other steps

14. Have you disputed the debt with the credit bureaus (both the original creditor and the collection agency?)

No

15. Did you request debt validation before the suit was filed? Note: if you haven't sent a debt validation request before being sued, it likely won't help create FDCPA violations, but could be useful to show the court that you dispute the debt ('account stated' vs. 'breach of contract').

No.  

16. How long do you have to respond to the suit? (This should be in your paperwork). If you don't respond to the lawsuit notice you will lose automatically. In 99% of the cases, they will require you to answer the summons, and each point they are claiming. We need to know what the "charges" are. Please post what they are claiming. Did you receive an interrogatory (questionnaire) regarding the lawsuit?

There is no questionnaire.

Here is an example of what the summons/complaint may look like: Sued by a Debt Collector - Learn How to Fight Debt Lawsuits

17. What evidence did they send with the summons? An affidavit? Statements from the OC? Contract? List anything else they attached as exhibits.

 


 

 

 

 

 

 

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I can't tell if this is small claims court or not.  

In Illinois, the limit is $10k for small claims.  But this says Circuit Court.  Anyone in Illinois know the answer?

In some states they use different case numbers for small claims, for example starting a case number with SC for Small Claims, for example.  

IF I were in your shoes, I would (A) write up an answer that denies everything, and uses lack of jurisdiction due to arbitration being elected.  (B) write up an MTC arbitration.  

Check the web site for your court about how you need to file this.  If you have questions, maybe go down there and ask.  Do NOT miss the deadline.

 

If you can arbitrate, you will probably win this.  If not, then you probably need to settle.  Fighting this is a way to buy some time to settle.

 

Some people on these forums think that preemptive arbitration is a horrible strategy.  This is exactly the sort of situation in which preemptive arbitration is a great strategy.  I had a small claims case by Citi against me.  I filed in JAMS (which was in the contract in those days), and got the filing in before they filed in small claims.  Oops.  Big mistake for them.  They withdrew the lawsuit immediately after I pointed out their error.   

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It's not small claims, which is good because the cardmember agreement says arbitration doesn't apply there.

I went in today and filed my appearance, no answer was required because it was under 10k. I've spoken to an attorney that was mentioned on these boards often, they would charge me $1k and claimed they can bring a settlement of $500-1000. I'm in the process of doing more research to see if I will go that route, or try for arbitration first.

I obtained the forms to file a MTC, for other people in Cook you need to file a motion notice as well. 

Questions I still have/still researching:

1. Will going for arbitration most likely cause the JDB to drop the case? It would be through AAA as listed on the cardmember agreement. 

2. Do I need to file through AAA first, or do I wait until after filing a MTC?

3. Would trying for arbitration in any way negatively impact my chances going the attorney route? Just in case arbitration was denied, or if they wanted to keeping fighting in AAA.

4. Does anyone have an affidavit example concerning cardmember agreements? I read adding that to the MTC would eliminate any arguments as to the validity of the agreement.

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1 hour ago, konkretekone said:

It's district 1 civil.

Have you investigated the complaint fully to ensure that it is not in the small claims section of circuit court?

I realize that Cook County has unique rules due to its population, but every other thread posted to this forum in IL circuit court turned out to be a small claims case or complaint.

You want to be very sure about this.

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If they argue "small claims" how do I format a reply, because they definitely did not file it in small claims court. That's a different court and form they would have had to use. Also still not sure if I need to file through AAA first, or do I wait until after filing a MTC?

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If it is indeed civil, then the small claims exemption no longer applies. 

File an answer, using lack of venue as a defense.

Also, if this really is civil and NOT small claims, file a MTC arbitration.  There are people who have posted examples on this forum.

Answering the case, and forcing them to fight, at least buys you time to settle. If you get them into arbitration, I have no idea what will happen.  They might walk away, or they might fight it.  This being a JDB, they are more likely to walk away.

 

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9 hours ago, konkretekone said:

Also still not sure if I need to file through AAA first, or do I wait until after filing a MTC?

If you file with the AAA first, before you have a court order, and Cavalry is not currently in good standing with the AAA (see here), then the AAA could refuse to accept jurisdiction of the matter, and send you a rejection letter like this one, which Cavalry could use as an exhibit in their opposition to your motion to compel arbitration.

In order to avoid this possibility, it is probably better to wait to file with the AAA until you have a court order from your granted motion to compel arbitration.  This doesn't apply to JAMS, which may be available in an older version of the account agreement (via a survivability provision), but if you choose JAMS, you will have greater exposure to arbitration cost re-allocation than you would with the AAA.  But also potentially less leverage, because the AAA is less expensive than JAMS.

 

9 hours ago, konkretekone said:

If they argue "small claims" how do I format a reply, because they definitely did not file it in small claims court. That's a different court and form they would have had to use.

Learn what a small claims complaint in circuit court looks like by reading all of the old IL threads on the forum.  Compare that to the complaint in your case in order to describe why you believe that your case or complaint is not small claims.  Draw venn diagrams, if necessary, to demonstrate how your case is excluded from small claims.  Show the features that a small claims case necessarily must have that your case lacks, and vice-versa.

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On 7/15/2018 at 11:47 AM, Pericles said:

If you file with the AAA first, before you have a court order, and Cavalry is not currently in good standing with the AAA (see here), then the AAA could refuse to accept jurisdiction of the matter, and send you a rejection letter like this one, which Cavalry could use as an exhibit in their opposition to your motion to compel arbitration.

In order to avoid this possibility, it is probably better to wait to file with the AAA until you have a court order from your granted motion to compel arbitration.  This doesn't apply to JAMS, which may be available in an older version of the account agreement (via a survivability provision), but if you choose JAMS, you will have greater exposure to arbitration cost re-allocation than you would with the AAA.  But also potentially less leverage, because the AAA is less expensive than JAMS.

 

Learn what a small claims complaint in circuit court looks like by reading all of the old IL threads on the forum.  Compare that to the complaint in your case in order to describe why you believe that your case or complaint is not small claims.  Draw venn diagrams, if necessary, to demonstrate how your case is excluded from small claims.  Show the features that a small claims case necessarily must have that your case lacks, and vice-versa.

Thank you, this is exactly what I needed.

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