dennyA Posted February 11, 2019 Report Share Posted February 11, 2019 Hello everyone, hoping to get some advice on my following case. Was served by Suttell and Hammer for a Discover Card debt on the 28th of January, and have been trying to research as much as possible before taking next steps (have a couple weeks left to respond). Details of case as follows: Named Plantiff: Discover Bank Name of Law Firm: Suttell and Hammer Amount sued for: $13,xxx.xx Original creditor: Discover Bank Was served on 1/28/2019 Served by person coming to my residence No correspondence before being served/sued Live in Orange County, CA Last time paid account: around 1.5 years ago Opened account more than 4 years ago SOL on account: For CA, believe it is 4 years Status on case: served 1/28/2019, nothing on my end has been filed or done as of yet Would like to ask for some advice on how to proceed with this case. If I should contact Suttell and Hammer to discuss a settlement offer or, as I’ve read in other posts, follow through with the case, ask for evidence from Discover and then try to fight it to the end? Thank you in advance! Quote Link to comment Share on other sites More sharing options...
BackFromTheDebt Posted February 11, 2019 Report Share Posted February 11, 2019 Discover really will fight to the end. This is not necessarily and either/or situation. If you don't work out a settlement, you will almost always lose the case, and be forced to pay everything. Your options are: 1. Settle now. 2,. Fight the case and settle later. 3. Lose Some people have used the tactic of filing for arbitration in order to try to get a better settlement. It works for some, but not for others. Generally, there are several good windows for settlement. Many of those windows have passed. Some of the remaining windows for settlement are: A. Right now. B. After you file in JAMS. You can *sometimes* get a better settlement between the time they get their first bill and when they pay the bill. Not always, but sometimes. C. Between the time when they get the bill for the initial hearing, and when they have to pay it. This is a bit further along the way. A number of people, including myself, have seen them accept settlements at this point which were the same as what they rejected earlier. D. After you lose the hearing, between the time you file for a 3-judge appeal and when they pay the bill. Again, they are looking at a large bill, so they are more apt to settle. E. Between the time they get the initial bill for the 3-judge hearing and when they pay it. F. After you lose the case in the second hearing. This will NOT be as good a settlement as the other times. This is your last gasp. My particular case won't help you at all. Discover and their attorneys made some serious mistakes along the way, so I was able to get a much better settlement than I have ever heard of anyone else getting from Discover. Be warned. Discover will generally go to the bitter end. They will spend unbelievable amounts of money to keep you from walking away from a $13k debt. I mean, they will spend tens or hundreds of thousands of dollars. Quote Link to comment Share on other sites More sharing options...
dennyA Posted February 11, 2019 Author Report Share Posted February 11, 2019 @BackFromTheDebt Thank you for the response. Yep, Discover went to serving a summons and didn't even offer the typical settlement offer letters that other OC have debt collectors send out. So I figure might be best to try to work out a settlement offer now to avoid the inevitable. However, to your point about arbitration, I have heard that might work in my favor by attempting to rack up costs on their end. I believe with JAMS that only incurs a $250 fee on my end for the entire duration of the case, with a high likelihood of dismissing any demands to pay arbitration fees from the other side if they demand. With that being said, would it result in a much different settlement offer if I try after submitting JAMS vs starting communications now? In regards to your case, what did you eventually settle at, %-wise of the total amount? Any advice on settlement communications, and did you deal with Suttel and Hammer as well? Quote Link to comment Share on other sites More sharing options...
Clydesmom Posted February 11, 2019 Report Share Posted February 11, 2019 22 minutes ago, dennyA said: With that being said, would it result in a much different settlement offer if I try after submitting JAMS vs starting communications now? MAYBE. There is no guarantee. We have had some defendants who tried this and were met with a stone wall of silence from Discover. There is no way to predict how Discover will act. Given that they have not made a settlement offer prior to suing I would not hold out too much hope that they will offer a settlement now. 25 minutes ago, dennyA said: I have heard that might work in my favor by attempting to rack up costs on their end. Key word is MIGHT. We have seen Discover hang in there and go to the bitter end refusing to even discuss settlement because the demand for arbitration ticked them off royally. Discover has already determined what number they will accept for settling if it is one less than the entire amount. If your offer does not meet that number or is ridiculously low they will either not respond or reject it. It is also possible they have already decided that nothing less than the entire balance is sufficient. The problem you have is you have NO defense either in court or arbitration. They know it. Settling is about leverage and it is possible you have already lost yours. You have nothing to lose by trying as settlement talks are not admissible in court as evidence but be realistic about what you can and cannot do. Quote Link to comment Share on other sites More sharing options...
dennyA Posted February 11, 2019 Author Report Share Posted February 11, 2019 8 minutes ago, Clydesmom said: Settling is about leverage and it is possible you have already lost yours. You have nothing to lose by trying as settlement talks are not admissible in court as evidence but be realistic about what you can and cannot do. Thanks for the response, what did you mean when you said it's possible that I've already lost my leverage. What leverage might I have had for this case? Quote Link to comment Share on other sites More sharing options...
Clydesmom Posted February 11, 2019 Report Share Posted February 11, 2019 42 minutes ago, dennyA said: Thanks for the response, what did you mean when you said it's possible that I've already lost my leverage. What leverage might I have had for this case? As the other response said there are several opportunities to settle that have already passed. That was when you had more leverage. It is possible some of the others he listed MIGHT happen but there is no guarantee. Quote Link to comment Share on other sites More sharing options...
Harry Seaward Posted February 11, 2019 Report Share Posted February 11, 2019 If you don't have a minimum $8,000 cash on hand, don't bother trying to settle until you do. A lot of times people think they are going to woo their creditors with 10-15% settlement and it never works. If you don't see yourself having $8,000 in the next 6-8 months, best to work on Plan B. Quote Link to comment Share on other sites More sharing options...
dennyA Posted February 11, 2019 Author Report Share Posted February 11, 2019 Just now, Harry Seaward said: If you don't have a minimum $8,000 cash on hand, don't bother trying to settle until you do. A lot of times people think they are going to woo their creditors with 10-15% settlement and it never works. If you don't see yourself having $8,000 in the next 6-8 months, best to work on Plan B. In regards to settling, I was definitely not going to request 10-15%, especially since it is with Discover, but was hoping for more in the range of 30-40%. Unless dragging this on would get me less than that, that's how much i'd be willing to settle this for. Everything I've read makes it sound like a more reasonable settlement is obtainable after a response to the summons has been sent and the process is put in motion? Quote Link to comment Share on other sites More sharing options...
Harry Seaward Posted February 11, 2019 Report Share Posted February 11, 2019 12 minutes ago, dennyA said: Everything I've read makes it sound like a more reasonable settlement is obtainable after a response to the summons has been sent and the process is put in motion? Possibly. The reason is you have prevented them from getting a default judgment. The value of this is relatively low, however. Especially on a $13k debt. It's probably going to cost them another $500, and possibly a higher chance of them losing in court. The other factor is how well these attorneys know the judge. If it's a judge they have won with before, they know they will win again and they'll want 100%. If it's a judge that is known to side with consumers, you'll get a screamin' deal, and you might get them to accept 40%. If it's a new or pro-tempre judge, it's more of a wild card, and they might go as low as 50% but probably more like 60%-70%. Quote Link to comment Share on other sites More sharing options...
Clydesmom Posted February 12, 2019 Report Share Posted February 12, 2019 33 minutes ago, dennyA said: In regards to settling, I was definitely not going to request 10-15%, especially since it is with Discover, but was hoping for more in the range of 30-40%. My opinion is you have ZERO chance that you would ever get a settlement of 30-40% from an original creditor with a debt that high. Discover has ALL the records they need to prove their case and they are well within the SOL for suit. I disagree with Harry that they might lose this case. They do not need a live witness or affidavit to admit their own records into evidence. It doesn't even take knowing the judge's tendencies but it helps. As for costs to them it isn't going to be that expensive. Suttell and Hammer is probably a law firm that is on a fixed retainer with Discover to handle a specific amount of cases from start to finish at a fixed rate. In addition, if you go to trial they get awarded expenses and you get to foot that bill in the end. Keep that in mind. 34 minutes ago, dennyA said: Everything I've read makes it sound like a more reasonable settlement is obtainable after a response to the summons has been sent and the process is put in motion? Again, MAYBE. There is absolutely NO guarantee and it is wise to remember that Discover is one creditor that has dug in for the long haul on not settling for less when irritated or angered by a consumer/defendant. Quote Link to comment Share on other sites More sharing options...
Harry Seaward Posted February 12, 2019 Report Share Posted February 12, 2019 2 minutes ago, Clydesmom said: I disagree with Harry that they might lose this case. I'm not saying it's a good, or even remote possibility, but unless we know for certain the judge in this case doesn't favor consumers, there's always a sliver of a possibility that he/she could. Quote Link to comment Share on other sites More sharing options...
dennyA Posted February 12, 2019 Author Report Share Posted February 12, 2019 Just reached out to Suttell themselves and the case manager I spoke to gave me a "bottom line" settlement offer of 61% on the total amount. So @Harry Seaward you were pretty on the dot with that $8k amount. He sounded pretty confident about that offer and said if I didn't settle then it would automatically default. Any advice regarding if I should respond to the case to try for lower? Or try to counter offer? Quote Link to comment Share on other sites More sharing options...
Clydesmom Posted February 12, 2019 Report Share Posted February 12, 2019 12 minutes ago, dennyA said: Any advice regarding if I should respond to the case to try for lower? What is your leverage to get them to accept less? 61% is a gift from an OC on a debt that high. 13 minutes ago, dennyA said: Or try to counter offer? When you make a counter offer you have to have the cash ready immediately. Do you have it? Quote Link to comment Share on other sites More sharing options...
Clydesmom Posted February 12, 2019 Report Share Posted February 12, 2019 44 minutes ago, Harry Seaward said: I'm not saying it's a good, or even remote possibility, but unless we know for certain the judge in this case doesn't favor consumers, there's always a sliver of a possibility that he/she could. Well, there is always a puncher's chance. Quote Link to comment Share on other sites More sharing options...
dennyA Posted February 12, 2019 Author Report Share Posted February 12, 2019 1 minute ago, Clydesmom said: What is your leverage to get them to accept less? 61% is a gift from an OC on a debt that high. When you make a counter offer you have to have the cash ready immediately. Do you have it? Could do a $5k lump sum payment if they'd agree to that. You think they'd accept that if I wait a few days and then call back, or is 61% going to be hard to sway from? Figured there'd be at least some wiggle room now that discussions have now started, and bigger picture, if I went through the whole process of a case I probably wont be able to get that much less. Unless a miracle.... Quote Link to comment Share on other sites More sharing options...
Harry Seaward Posted February 12, 2019 Report Share Posted February 12, 2019 10 minutes ago, dennyA said: You think they'd accept that if I wait a few days and then call back, or is 61% going to be hard to sway from? I personally don't see it happening, but no harm in trying. I'd be working on your backup plan. Quote Link to comment Share on other sites More sharing options...
Goody_Ouchless Posted February 12, 2019 Report Share Posted February 12, 2019 Didn't Discover start as a card that targeted slightly higher risk customers, which they balanced with a very aggressive in-house collections arm? 61% does seem like a gift, considering that we've seen them pursue arbitration for tiny debts. Perhaps they'd take your 5K and do a stipulated judgement with a generous no-interest payment plan for the balance. Hard to see them taking less, but worth a shot. At least you called - we see many people not even take that step to find out where they stand. Quote Link to comment Share on other sites More sharing options...
dennyA Posted February 12, 2019 Author Report Share Posted February 12, 2019 3 minutes ago, Goody_Ouchless said: Didn't Discover start as a card that targeted slightly higher risk customers, which they balanced with a very aggressive in-house collections arm? 61% does seem like a gift, considering that we've seen them pursue arbitration for tiny debts. Perhaps they'd take your 5K and do a stipulated judgement with a generous no-interest payment plan for the balance. Hard to see them taking less, but worth a shot. At least you called - we see many people not even take that step to find out where they stand. Yea I'd to settle for 5k lump sum if possible, will wait a day or two and then try calling back to see if I can get something lower than 61% Quote Link to comment Share on other sites More sharing options...
BackFromTheDebt Posted February 12, 2019 Report Share Posted February 12, 2019 To answer, or rather avoid answering, a question asked earlier about what % I settled for -- 1. There was an NDA. I can't tell you. 2. My situation was completely different from yours. My Discover account had bounced among 4 different law firms, not all in the correct state. In the last firm, the only debt collection attorney quit the firm while handling my case, and it sat in a drawer for over a year. When they finally got a new debt collection attorney, the case was barely withing the SOL in my state, but outside the SOL in Delaware or wherever Discover is chartered. That created a very interesting choice of law issue. If the arbitrator used the Delaware law, I win. If not, Discover wins. And, Discover would have to win twice, since I could appeal to a 3-arbitrator panel. So Discover would have to convince 1 judge once, and 3 judges a second time, that they really didn't mean it when they said all disputes in arbitration should use Delaware law. 3. There were a number of problems with their documents. Discover doesn't make that kind of mistake anymore. To make a long story short, I got a better settlement than you could possibly get, because Discover didn't want to have to deal with these issues in arbitration, at great expense. Discover is willing to pay any price to win an arbitration case. When it is a case they might lose, they aren't as willing. Quote Link to comment Share on other sites More sharing options...
Light & Burden Posted February 16, 2019 Report Share Posted February 16, 2019 The Importance of Resolving Debt, I too was taken to court and have a deadline to meet, which I am trying to meet. However, Sutmiller & Hammer also have an error on their letterhead for bill collection. So, if you do not clarify with the Post Office or their website you will be nailed for sending it to the wrong address. Quote Link to comment Share on other sites More sharing options...
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