skipperd Posted June 29, 2019 Report Share Posted June 29, 2019 Hello, I would really appreciate some thoughts on a situation I am in with a debt collection/law firm who is suing me in Arizona justice court on behalf of a card issuer (original creditor). Some background: The amount claimed owed is approximately $5000 (likely correct). I am within the statute of limitations. I have been served recently by alternate means. The venue is incorrect. I am within the answer window and change of venue motion window. There is no arbitration agreement The main problem that I am facing right now is that I thought the matter had been settled BUT over a month after reaching a settlement agreement over the telephone with the firm's rep and making 2 of 12 agreed upon direct debit payments (full amount owed over 12 payments), I was served by the firm and they are pressing forward in justice court. The rep that I was negotiating with told me originally that I would be mailed settlement paperwork that I needed to sign, notarize, and return. I have spoken with the rep two times since then about not getting the paperwork. He has my correct address, says he'll resend and that "I'm all set." but the lawsuit presses on, I now realize I shouldn't have paid anything until getting the agreement in writing. I think the problem is that I "settled" with the firm's debt collection arm and not their legal arm. Apparently they don't talk whatsoever? Or, this is a ploy to also get a judgment so they can also tack on some legal fees and extra interest? I can't get in touch with their legal arm at all. My plan is to file for a change of venue ASAP. The things I'm wondering about are: Is this a common tactic? Should I send them a letter saying to cease all debits since the matter apparently isn't settled like I thought? I don't know if I file my answer right away or if I have to wait for the judge's decision on the change of venue and then answer to the appropriate court? Should I also file a complaint with the court in my answer about them not honoring the settlement (except they're honoring the taking my payments part of the agreement just fine) Thank you very much for any assistance. Quote Link to comment Share on other sites More sharing options...
WhoCares1000 Posted June 30, 2019 Report Share Posted June 30, 2019 If it is not in writing. it did not happen. I would however get proof that the first 2 payments had been made and bring that to court if it goes to trial. You can also try to redo the agreement with the attorney but realize they will probably want a stipulated judgement so that if you miss a payment, they don't have to go to court again. This is why you don't pay anything until you get the paperwork for any agreement. Quote Link to comment Share on other sites More sharing options...
Harry Seaward Posted July 1, 2019 Report Share Posted July 1, 2019 Agree with @WhoCares1000 that an agreement not in writing is no agreement. And making payments doesn't prevent them from exercising their right to sue for the full amount. It's crappy business model, but they are within their rights. If you are not located within the jurisdictional boundaries of the specific JC where they filed the suit, you should file a motion to dismiss based on lack of personal jurisdiction. They will have to pay the filing fee and costs of service again so, while it probably totals less than $200, it gives you a little bit of leverage to negotiate a settlement, but get it in writing this time. Quote Link to comment Share on other sites More sharing options...
fisthardcheese Posted July 1, 2019 Report Share Posted July 1, 2019 Additionally, suing in the wrong venue is an FDCPA violation. I would call a couple consumer attorney who does FDCPA work in your area and inform them you were sued in the wrong venue and see if one of them wants to use that violation to work out an even better settlement deal for you. Quote Link to comment Share on other sites More sharing options...
skipperd Posted July 2, 2019 Author Report Share Posted July 2, 2019 Thank you all so much for the advice. It is incredibly helpful! Quote Link to comment Share on other sites More sharing options...
Harry Seaward Posted July 3, 2019 Report Share Posted July 3, 2019 @skipperd I didn't make this very clear, but you want to file the motion to dismiss instead of an answer. Quote Link to comment Share on other sites More sharing options...
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