In California Being Sued by Cavalry SPV I LLC as Assignee of Citibank NA

[MouseRabbit]

Hi Everybody,

I am being sued by Cavalry SPV I, LLC for a Citibank credit card account I defaulted on while I was having a very rough few years (depression, divorce, joblessness, underemployment, homelessness, loss of family member, etc.). Things have turned around since - credit score recovering and thankfully, never had to file bankruptcy.

I believe in paying back my debts but Citibank got too greedy and lost me. Had their terms not have kept changing, they'd probably still be reaping the minimum payments off me (that is, of course their whole purpose as an institution?).

I had gotten the card while in college to use for emergencies and to build credit. I used the card for about 9 years, usually paying it off entirely but occasionally racking up a big debt following a vacation, for instance, or when I had to buy a new computer, buy a suit for a wedding, etc. I should have known better than to just make the minimum payments on it as the debt never got any smaller. They got greedy and hiked the interest rate from its initial 11.99% or 14.99% to 29.99% suddenly, which was a shock as I had never been late on a payment and was always utilizing below 50% of my limit. I called to see if they could lower it but their response was "that's just how it is - but we can reduce it to 27.99% for a month since you're a valued customer etc". This happened about 3 times. 

My wife and I separated and I moved back to California where I changed careers and started working freelance resulting in unreliable income and sleeping on couches. My income became too scant to make those minimum payments. After 9-ish years of always paying on time, I defaulted one month. I called Citibank and asked if I could postpone the $250 min payment for a month due to financial difficulty and they simply said no. An overdue paycheck finally landed and I was ready to make that minimum payment but when I logged in to do so, the minimum payment had now jumped to $600 (late fee and previous minimum payment). I defaulted another month and again when I got paid and was keen to make a payment the new minimum had jumped again to a figure that was even further out-of-reach.

I called Citibank to see about options I had - whether I needed to close the account or create a repayment plan but they wanted a huge chunk right upfront to even initiated something, plus a commitment to pay another large chunk the next month. I was effectively buried. And meanwhile they kept adding late fees and accruing interest. The amount owed ballooned to a figure nearly double what I had ever spent on the card in the first place.

Had I been smarter, maybe I would have tried to get a loan with lower interest to pay off the account or something but the priority of this Citibank thing began to be lower as I started facing some other real problems. It's all been a very valuable lesson on interest rates and credit cards and it's unfortunate I wasn't able to keep paying it before they sent it to collections. Cue the sad violins.

I've been reading tons of posts and am hoping to beat this. Here's my answers to the standard questions - I hope to get all my questions answered as well as keep you all posted on how I do...

1. Who is the named plaintiff in the suit? Cavalry SPV I, LLC, as Assignee of Citibank, N.A.

2. What is the name of the law firm handling the suit? (should be listed at the top of the complaint.) Mandarich Law Group, LLP.

3. How much are you being sued for?  ~$8,500.

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

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.

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? Los Angeles, CA.

10. When is the last time you paid on this account? (looking to establish if you are outside of the statute of limitations) 3 years, 4 months ago.

11. When did you open the account (looking to establish what card agreement may be applicable)?  2006.

12. What is the SOL on the debt? To find out: 4 years.

13. What is the status of your case? Suit served? Motions filed?  "Pending"

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 disputing after being sued 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?  30 days to respond. Did not receive an interrogatory. Here's what they are claiming: Cavalry is the owner of the debt I owed to Citibank and I have to pay them. 1. The damages and money in the sum of  [$8,500]; 2. Cost of suit incurred; 3. Other such relief as the Court deems just and proper; 4. Plaintiff remits all damages in excess of the jurisdictional amount of this Court.

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

Just statements from the OC.

Exhibit A: Account Stated (a statement from when I first defaulted);

Exhibit B: Open Book Account (a statement from a few months later)

That's it.

18.  How did you find out about this site? Googled "Sued by Cavalry SPV"

 

After reading a lot of threads, I'm planning on doing a General Denial and asking for BOP. Just wondering, anybody else that is dealing with this (or has before) what did you put on your General Denial form?

[sadinca]

14 hours ago, MouseRabbit said:

After reading a lot of threads, I'm planning on doing a General Denial and asking for BOP. Just wondering, anybody else that is dealing with this (or has before) what did you put on your General Denial form?

how long do you have to file your answer? 

how far away is the SOL on the alleged account? 

 

[MouseRabbit]

It was served to me on December 2nd. The SOL would be late August 2019.

[sadinca]

Bill of Particulars request.doc

You can send a BOP request even before you file your answer. 

Of the complain is not verified (most likely) a simple gd will suffice. It generally denies all the allegations within the complain; you don't have to include and affirmative defenses. 

What is the cause of action?

[MouseRabbit]

 

On 12/22/2018 at 11:23 PM, sadinca said:

Bill of Particulars request.doc

You can send a BOP request even before you file your answer. 

Of the complain is not verified (most likely) a simple gd will suffice. It generally denies all the allegations within the complain; you don't have to include and affirmative defenses. 

What is the cause of action?

Thanks Sadinca,

I will use use this great example of a BOP request. 

As for "cause of action", as follows:

Quote

First Cause of Action (Account Stated)

24. Plaintiff refers to and incorporates paragraphs 1 through 23. 

25. Within the past 4 years, an account was stated in writing in which it was agreed that Defendant were indebted in the amount previously referenced herein. Although demand has been made upon Defendant, said amount of [$8,500] has not been paid and it is now due, owing and unpaid from Defendant to Plaintiff, as successor in interest.

Second Cause of Action (Open Book Account)

26. Plaintiff refers to and incorporated paragraphs 1 through 25.

27. Within the past 4 years, Defendant and each of them became indebted in the amount of the previously mentioned herein for a balance due on a book of accounts for goods sold and delivered and/or services rendered by Citibank, N.A.. Although demand has been made upon Defendant, said amount of [$8,500] has not been paid, and it is now due, owing and unpaid including attorney's fees from Defendant to Plaintiff as successor in interest.

 

I am happy to type up paragraphs 1 thru 23 as well if you think they're necessary.

Should I be worried about how much info I am putting on here? any chance that Mandarich Lawyers come on here? Thanks for the help.

 

 

[1stStep]

OK - this is textbook... there are hundreds of cases like yours on here.

1. Send them the Bill of Particulars - in your cover letter, note that the cause of action "Open Book Account" subjects them to answer the Bill. Tell them you expect a response within 30 days, or you will file a motion to preclude any evidence they plan to introduce. 

2. File a General Denial. The CA Judicial Council has the appropriate forms you can use to file the answer (I don't remember the form # off the top of my head).

To be a a*hole, I have filed my responses on Day 29. I love seeing their motion for clerk's default being denied because the answer was filed.

[sadinca]

On 12/24/2018 at 10:02 AM, MouseRabbit said:

I am happy to type up paragraphs 1 thru 23 as well if you think they're necessary.

Should I be worried about how much info I am putting on here? any chance that Mandarich Lawyers come on here? Thanks for the help.

 

there is no need to include those paragraphs. as to the amount of identifiable information you post, just keep it as vague as possible. if theres ever a need to be specific, you can always DM. 

as far as the BOP goes, i would leave it the way it is, replacing only the red fonts. you dont have to note the Open Book Account, if they want to object based on on the Account Stated and act as if there is no Open Book Account cause of action, let them do it. 

 

[sadinca]

forgot to mention CCP 454 allows for only 10 days. 

 California Code, Code of Civil Procedure - CCP § 454   "...but he must deliver to the adverse party, within ten days after a demand thereof in writing, a copy of the account, or be precluded from giving evidence thereof."

[MouseRabbit]

Thank you for the help Sadinca and 1stStep.

Just want to make sure this is correct - when serving my answer, a copy must be mailed to all the lawyers of the plaintiff? (in this case there are 5)

[MouseRabbit]

Also, I was wondering about the cover letter for the BOP. Is the cover letter the doc file?

Also, I was wondering about this:

http://www.courts.ca.gov/partners/documents/DemandBillParticulars.doc

Is this a relevant document to fill out and include?

 

[sadinca]

7 hours ago, MouseRabbit said:

Thank you for the help Sadinca and 1stStep.

Just want to make sure this is correct - when serving my answer, a copy must be mailed to all the lawyers of the plaintiff? (in this case there are 5)

you just need to serve one. I never address it to any particular lawyers attention, but @calawyer has recommended to serve the lawyer signing the document, in this case the summons.

as a reminder, do not file the BOP in court, do keep a copy for your records. with every document you serve, you must include a proof of service; serving must be completed by an adult, not a party to the case. 

http://www.courts.ca.gov/documents/pos030.pdf

[sadinca]

7 hours ago, MouseRabbit said:

Also, I was wondering about the cover letter for the BOP. Is the cover letter the doc file?

Also, I was wondering about this:

http://www.courts.ca.gov/partners/documents/DemandBillParticulars.doc

Is this a relevant document to fill out and include?

 

i would not send document you attached. i would send the document i posted on Dec 22, and the proof of service. 

[MouseRabbit]

Updating. So, I had my neighbor sign the POS-030 and drop off several letters at the post office, certified mail. There was one letter for each named lawyer, but all the same contents:

- PLD-050 (general denial (sans affirmative denials))

- PLD-050(p) list of lawyers I had sent to

That's all I put in those. I retained the certified mail receipts. And made two copies of the signed POS-030.

I then made my way to the courthouse, found the appropriate filing window, paid $225 fee and had filed the originals of:

- PLD-050

- PLD-050(p)

- POS-030

And had my two copies of each document stamped for my records.

 

Did I do anything incorrect? Was I supposed to include an unsigned POS-030 in each letter sent?

[RyanEX]

2 hours ago, MouseRabbit said:

Did I do anything incorrect? Was I supposed to include an unsigned POS-030 in each letter sent?

Technically, yes. The POS that is sent should be unsigned, the other copy of it is then signed and filed along with your answer. Not a big deal though, just something to know for next time. You don't need to send to each named lawyer, just one; you can go with the lawyer that signed the complaint.

I personally wouldn't bother doing certified mail for the answer; the most important thing about the answer is filing it with the court. But just about everything else you end up sending to plaintiff should be certified.

[MouseRabbit]

So, I sent the Demand for BOP fourteen days ago and no response yet. However, yesterday I received the interrogatories and discovery from plaintiff's lawyers. It was three documents total... Wish I had the packet with me so I could be more specific about it. It looks about the same as the other ones I've seen on here: "Admit you had an agreement with Citibank... Etc." 

I'm wondering what I do if I don't see a response to my BOP by the end of this week? I send a meet and confer letter stating the items I requested are now precluded?

Also, wondering if I file the POS of my BOP with the courthouse or just hold on to it? 

[sadinca]

16 minutes ago, MouseRabbit said:

So, I sent the Demand for BOP fourteen days ago and no response ye

the code allows for 10 days, plus 5 days if served by mail. so technically they still have until tomorrow to place their response in the mail. if i were you, i would give it another week before you start answering the discovery questions. 

 

24 minutes ago, MouseRabbit said:

I send a meet and confer letter stating the items I requested are now precluded

unfortunately, you cannot meet and confer and state the requested evidence is precluded. for that to be precluded you will first have to move the court to compel further bill of particulars. If plaintiff still refuses to comply with the Bill of Particulars demand, the court may bar plaintiff from introducing evidence at trial. .

32 minutes ago, MouseRabbit said:

Also, wondering if I file the POS of my BOP with the courthouse or just hold on to it? 

Just hold on to the BOP and POS . those do not get filed with the courthouse

[MouseRabbit]

Thanks Sadinca, I'll stand-by for a week or so and await a response to my demand for BOP.

Court date is way far in the future (around Thanksgiving) so I know I have a lot of time. Wondering if you ever went ahead and watched some collections court trials before you had yours? If so, do you recommend it?

[sadinca]

i did. from my place of work it takes 5 minutes walking to the courthouse. so i did go a few days. most of the times i went it was wasted time; defendants did not show up to court or cases were settled prior to trial. of the several times i went to court i think i witnessed, maybe two cases. during one of those i did witness a pro se defendant getting shredded, not by the lawyer, but by the judge. defendant was not prepared for trial. he objected to the evidence based on hearsay. the judged stated he was allowing the evidence to be introduced due to plaintiff's witness ccp98 declaration. defendant doubled down on his hearsay objection, thus irritating the judge who had to explain the ccp 98 rules, and how the defendant should've subpoena the witness signing the ccp 98 declaration. the defendant again stated that the evidence was hearsay and should not be allowed into evidence. that made the judge upset, he berated the defendant, stating he should stop believing everything he reads online. 

if you do have the time to visit your courthouse and witness a few cases, i would definitely recommend it. perhaps your courthouse is more busy that mine. the more familiar you get with the process, the arguments, objections, and caselaws, the better you will be in case this goes all the way to trial. 

 

[MouseRabbit]

Thanks, that's great advice and that's the type of thing that it'd be helpful to see played out in front of me. So far, I've never been at a trial except for that one time I almost got selected for jury duty.

My courthouse is about a 30min drive (if there's no traffic). But free street parking and since I'm a freelancer, I can even squeeze some work in during idle time.

Thanks for the advice.

[MouseRabbit]

No response yet to my BOP sent 28 days ago. Still have over a week to respond to admissions, interrogatories and discovery... what do you think my next move should be? Thanks so much for your help.

[sadinca]

So you served the BOP and received no response. 

Time to answer their Discovery questions

[sadinca]

can you post the questions or DM.

[MouseRabbit]

On 2/14/2019 at 10:23 AM, sadinca said:

can you post the questions or DM.

Thanks for the help, I really appreciate it. I was very busy the last few days on a project with long hours.

I finally received an answer to my BOP - it was served a full 28 days after I had served the request. It comprised of an "Exhibit A" which was a card agreement (not the original and not signed), a reprint of a 2 year old letter from Cavalry (which I've never seen until now) stating they were assigned my debt and giving me 30 days to request validation, a Bill of Sale signed by representative of Citibank, a redacted "asset schedule", and 12 month of statements. In accordance with CCP 454, as they didn't make the 10 day deadline, can these be barred from admission of evidence?

And below are the Request for Admissions, Special Interrogatories and Request for Production. 

 

Request For Admissions

1. Admit that ORIGINAL CREDITOR issued to YOU the ACCOUNT (for purposes of the Request for Admissions, "ORIGINAL CREDITOR" means Citibank, N.A., "YOU" and "YOUR" mean and refer to [MouseRabbit] your agents, attorneys, representatives or anyone acting on your behalf, and "ACCOUNT" means the Citibank, N.A. account number XXXXXXXXXXXX#### which is the subject of this lawsuit).

2. Admit that YOU used said ACCOUNT (e.g., for purchases and/or cash advances).

3. Admit that YOU and ORIGINAL CREDITOR entered into an agreement regarding the ACCOUNT.

4. Admit that YOU agreed to pay ORIGINAL CREDITOR and its successors and assigned all outstanding balances owed on the ACCOUNT.

5. Admit that ORIGINAL CREDITOR mailed monthly statements to YOU regarding YOUR ACCOUNT.

6. Admit that YOU received a final statement on or around ##/##/#### from ORIGINAL CREDITOR with an outstanding balance of $####.##

7. Admit YOU never disputed, with any person or entity including the ORIGINAL CREDITOR, the statement with an outstanding balance of $####.##.

8. Admit that YOU have not paid the outstanding balance on said ACCOUNT.

9. Admit that YOU owe the Plaintiff the amounts prayed for in the Complaint.

10. Admit that YOU have no facts which would vary the amounts owed to Plaintiff.

11. Admit that YOU have no affirmative defenses against the Plaintiff's Complaint. Executed at XXXX, California on XX/XX/2019.

 

Special Interrogatories Set #1

1. State all facts upon which YOU base YOUR contention that YOU owe nothing on the ACCOUNT (for purposes of these Special Interrogatories, "YOU" and "YOUR" mean and refer to [MouseRabbit], your agents, attorneys, representatives or anyone acting on your behalf, and "ACCOUNT" means the Citibank, N.A. account XXXXXXXXXXXX#### which is the subject of this lawsuit). If YOU make no such contention, do not answer this interrogatory.

2. Describe each document that YOU believe supports YOUR contention that YOU owe nothing on the ACCOUNT. If YOU make no such contention, do not answer this interrogatory.

3. State all facts upon which YOU base YOUR contention the YOU owe less than the amount prayed for in the Plaintiff's Complaint on the ACCOUNT. If YOU make no such contention, do not answer this interrogatory.

4. Describe each document that YOU believe supports YOUR contention that YOU owe less than the amount prayed for in Plaintiff's Complaint on the ACCOUNT. If YOU make no such contention, do not answer this interrogatory.

5. Sate each of YOUR affirmative defenses.

6. State all facts upon which YOU base YOUR affirmative defense(s).

7. State each mailing address, if different from YOUR residence addresses, for the last ten years.

8. State all facts regarding payments made on the ACCOUNT.

9. Describe each document evidencing payments made on the ACCOUNT.

10. If YOU have ever been married, state the name of YOUR spouse(s).

11. State all details regarding the length of YOUR marriage(s)(i.e., from what date until what date).

Executed at XXXX, CA XX/XX/2019.

 

Request for Production of Documents Set #1

Documents to be Produced

1. Copies of any and all correspondence between YOU (for the purposes of this Request for Production, "YOU" and "YOUR" mean and refer to [MouseRabbit] your agents, attorneys, representatives or anyone action on your behalf) and ORIGINAL CREDITOR (for purposes of this Request for Production, "ORIGINAL CREDITOR" means Citibank, N.A.) relating to the CREDIT ACCOUNT (for purposes of this Request for Production, "CREDIT ACCOUNT" means the Citibank, N.A. credit card account XXXXXXXXXXXX#### which is the subject of this lawsuit).

2. Copies of any and all correspondences between YOU and Plaintiff relating to the CREDIT ACCOUNT.

3. Copies of any documentation evidencing any payments make to ORIGINAL CREDITOR on said CREDIT ACCOUNT.

4. Copies of any and all documents that support the affirmative defenses raised by YOU in this action.

5. Copies of all correspondences from YOU regarding false or factually incorrect claims or statements that YOU believe were made to various credit reporting bureaus or services about YOUR Credit Account.

Executed at XXXX, California on XX/XX/2019.

 

 

[sadinca]

wish we had responded the discovery questions last week before you received the response. whats the dateline for your to answer?

where there any objections included in their response?

 

[MouseRabbit]

Deadline is Sunday for it to be in the mail but as they don't collect mail on Sunday, I guess I've gotta have it in there Saturday. Yikes! 

No objections were in their response. 

Why would it have been preferable to respond to discovery before they responded? 

Working on reworking some answers I've seen. Been on this hectic work  project but I wanna post my answers here tonight to see your thoughts. Again, thanks for all the help SadinCa!