Winrich7173

Being sued by midland in Iowa, small claims

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Served with a small claims summons, $600 to midland funding. They attached an affidavit and a couple generic looking bill of sales that do not have my name or any identifying information that could be traced back to me on them. Midland funding is the 3rd debt collection company to be assigned this debt, and I’ve never been notified of the prior assignments. They also included billing statements from the original creditor. I feel that the affidavit, and the statements are hearsay and I should be able to get them dismissed, but would like some advice before I answer the complaint 

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33 minutes ago, Winrich7173 said:

I feel that the affidavit, and the statements are hearsay

They are but fall under the business records exemption to hearsay. Several years ago it was a 'thing' to argue these records were inadmissible hearsay but pretty much every jurisdiction has acknowledged that the modern world would cease to function if Company A couldn't rely on the records of Company B.

Who is the OC? If it's not Citi, Cap1 or Credit One, you can probably make this go away with arbitration. 

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14 hours ago, Winrich7173 said:

Midland funding is the 3rd debt collection company to be assigned this debt, and I’ve never been notified of the prior assignments.

They are not the third buyer.  Credit One is a Sherman Group company and they "move" the debt around from one sub-company to another a few times.  Each time they issue a collection letter but it is really only a move to shuffle debt around and make profit/loss statements look better.  It has zero affect on the consumer.  Unless Iowa has a law that requires they notify you of assignment then it also doesn't matter you were never notified.

2 hours ago, Winrich7173 said:

But like I said, the bill of sales don’t have my name on them or any identifying information.

It doesn't have to.  The affidavit attesting to the records will be sufficient for the court.  You need to get a grip that the hearsay defense on the records no longer stands because of the adopted business records laws.  

2 hours ago, Winrich7173 said:

Credit one is the OC.

That rules out arbitration.  You need to either settle or be prepared to defend the suit.

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If this were me, I would just motion to move the case out of small claims, to the next higher court and then use the arbitration method.  Or, I would check my court rules and see if the small claims court allows for a De Novo appeal and then take my chances with arbitration in small claims but be prepared to be defeated and then use the DeNovo appeal to restart the case in a higher court and file a Motion to Compel Arbitration in that new court.

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