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Being sued in Arkansas


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Hello everyone. I have been reading through the forums for a few days now. After coming to the conclusion that arbitration may be in my best interest. I am a complete newbie when it comes to law and legal talk although I have learned a lot looking and reading these forum pages. I have two lawsuits. One has been served and the other has been filed and the processor actually called me to tell me he had papers to serve on the second one. He said it would be a few days and he would be back in town. I went to the court website and found that it has been filed. I am going to start work on the first one from Credit Corp and see what happens. The second suit is from Velocity/ Lending club for approx $11,500. I need as much help as possible with these. I have been reading for hours but i still feel lost 90 percent of the time. Below is the info on the first case. As soon as I'm served i will post the second. Thanks in advance to any that will lend their expertise.

 

 

1. Who is the named plaintiff in the suit? Credit Corp Solutions Inc

2. What is the name of the law firm handling the suit? Llyod &Mcdainel, PLC, Louisville, KY

3. How much are you being sued for? $1000

4. Who is the original creditor? Synchrony Bank

5. How do you know you are being sued? (You were served, right?)  Served by local sheriffs office

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 before

9. What state and county do you live in? Arkansas

10. When is the last time you paid on this account? Approx 2 years

11. What is the SOL on the debt? 5 Years I believe

12. What is the status of your case? Suit served? Motions filed?  No action taken on my part. Trying to figure out how and what info to file with answer

13. Have you disputed the debt with the credit bureaus (both the original creditor and the collection agency?) For some reason this isn't on my credit report

14. Did you request debt validation before the suit was filed? No

15. How long do you have to respond to the suit? 30 days Served on the 7/3/2019 so time is limited

16. What evidence did they send with the summons?

A.Affidavit from book keeper of Credit Corp

B.Bill of sale from Synchrony bank

C.Affidavit of sale By original creditor

D.Credit Card agreement/ with arbitration clause

 

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You have a little homework to do. 

This is a Synchronicity account sold to a JDB (Junk Debt Buyer)

You can probably beat them.  You need to take them into arbitration.  Almost certain they will walk away as soon as you do so.   

Follow these steps:

1.  Look up the arbitration thread on this forum.  Read what you need to do. 

2. Go to the CFPB web site.  Download a copy of the applicable credit card agreement. 

3. Write up a draft of a Motion to Compel arbitration. MTC for short.  If you have questions, post a redacted copy of your draft (your name etc removed) here for others to critique.  There are samples on this forum if you look for them. 

4. Find out the procedure for filing and possibly scheduling a motion in your county. 

5.  File the MTC with the court.  

6.  A few more steps, but that is enough for now.  

Start with steps 1 and 2, ask questions when they pop up. 

 

Good luck!

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Hey thanks for that info. I am gonna start working on an MTC today and hope to have it posted back in a day or so. I am trying to figure out if i should file this with my answer or as my answer. I have read that some states or courts will not let you file arbitration after you file an answer. At leaset that is the way i understood it.

In the Arbitration clause it states: If you ask us to, we will pay all the fees the administrator and arbitrator charges, as long as we believe you are acting in good faith. We will always pay arbitration costs,as well as your legal fees and costs, to the extent you prevail on claims you assert against us in an arbitration proceeding which you have commenced.

Should I ask them to pay for the cost or should I just pay the filing fee myself? What happens if they follow and win? Does that mean i would be stuck with those fees? I am assuming yes.

 

Here is a copy of the MTC. I have read through my agreement and made very little change to the MTC that was posted on the forum. I cant see anything else that would need to be changed. Please let me know what you think.

MOTION TO COMPEL REDACT.docx agreement.pdf

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1 hour ago, Xtreme98 said:

Hey thanks for that info. I am gonna start working on an MTC today and hope to have it posted back in a day or so. I am trying to figure out if i should file this with my answer or as my answer. I have read that some states or courts will not let you file arbitration after you file an answer. At leaset that is the way i understood it.

File your answer within the time limit.  Include the affirmative defense of "Lack of subject matter jurisdiction due to a private arbitration agreement between the parties that Defendant is invoking".  Mentioning arbitration in your answer prevents any type of waiver issues, which in my opinion, too many people put unnecessary focus and stress on to begin with.  The answer is important to file on time.  The MTC can be filed afterwards if you need time to work on it more.

1 hour ago, Xtreme98 said:

In the Arbitration clause it states: If you ask us to, we will pay all the fees the administrator and arbitrator charges, as long as we believe you are acting in good faith. We will always pay arbitration costs,as well as your legal fees and costs, to the extent you prevail on claims you assert against us in an arbitration proceeding which you have commenced.

Should I ask them to pay for the cost or should I just pay the filing fee myself? What happens if they follow and win? Does that mean i would be stuck with those fees? I am assuming yes.

This is mostly irrelevant at this point.  You need to break everything down into small steps.  You have been sued.  Step one is to file an answer on time.  Just do that for now and forget everything else.  You will not be responsible for any arbitration fees in this case regardless.

Read my link about arbitration below. It covers all of this and more.

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I am reading over the arbitration strategy again but I am working on my answer first and will get that filed by Friday at the very latest. I just want to say i am very appreciative for the help. Will post back when i have my answer filed and or when i am served the second suit.

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@BackFromTheDebt and @fisthardcheese have given you great advice.   As they said, the first step is to file your timely answer including your affirmative defense for arbitration, and then file the MTC. 

I dealt with this law firm and made the mistake of beginning discovery with them.  After I filed my answer, the sent their discovery request, and I sent mine.  Part of what they sent was my card agreement, and with the help of the great minds and generous souls on this site, determined the card agreement had an arbitration clause.  Filed the MTC, they never responded, and the Circuit Court judge in Little Rock dismissed the case under Rule 41 over a year from my motion.

 

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They never responded to my MTC, and after a year with no activity from the plaintiff, the court can dismiss the lawsuit for lack of prosecution under Arkansas Rules of Civil Procedure - Rule 41.  My opinion is that this law firm goes after the easy kill (defendants that fail to provide a timely answer and then a default judgment) vs. investing time with defendants that purse arbitration.

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Did you ever post the original complaint?  It would be helpful to see that to ensure you addressed everything they had in there.

Also, you need to add a Certificate of Service statement after your signature.

Example:

CERTIFICATE OF SERVICE

The undersigned certifies that I have on the 26th day of July 2019 served <insert law firm name and address> with the foregoing Response by placing the same in the U.S. Mail, certified, return receipt requested with sufficient postage attached

Your Signature, pro se

I do recommend that you use certified mail, return receipt requested for ANYTHING you send to the Plaintiff via their law firm in case you need to prove they got it.

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47 minutes ago, wernda1234 said:

I do recommend that you use certified mail, return receipt requested for ANYTHING you send to the Plaintiff via their law firm in case you need to prove they got it. 

Generally the court doers not require you show proof they RECIEVED it, only proof that you SENT it.  The Certificate of Service is that proof.  The entire point of it is that you are essentially 'certifying' under oath to the court that you took the action of mailing them a copy.  IMO, mailing it certified is overkill.

3 hours ago, Xtreme98 said:

I am a bit confused as to what questions exactly I am answering

YOu go line by line down their complaint and answer everything they have alleged in it.

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Here is what I would suggest, using an answer template that I found out on the Arkansas Legal Service website.   I used that template when I answered my lawsuit.

Again, I am NOT an attorney.  These are just my ideas and I defer to the superior wisdom of the group.

You would reply to each paragraph.  If everything in the paragraph is true, you admit.  If everything is false, you deny.  If you don't know, then you have insufficient knowledge to admit or deny.  And you can do combinations.

Use the same header information on the complaint (centered in your document).  Your Answer should be double spaced.

Please do NOT cut and paste this.  I came up with this based on reading the Complaint - you need to make sure each answer is correct based on your understanding, not mine.

After all, you are the one signing it :)

ANSWER

     COMES NOW the Defendant, <your name>, pro se, and for his Answer to the Complaint filed herein against him, respectfully states as follows:

  1. Defendant has insufficient knowledge to admit or deny the allegations contained in the first paragraph of the Complaint
  2. Defendant admits he is a resident of Stone County, Arkansas.  Defendant has insufficient knowledge to admit or deny the remaining allegations contained in the second paragraph of the Complaint.
  3. Defendant has insufficient knowledge to admit or deny the allegations contained in the third paragraph of the Complaint.
  4. Defendant objects to the allegations stated in the fourth paragraph of the Complaint in that they call for a legal conclusion.  In so much as a response is required, Defendant denies.
  5. Defendant has insufficient knowledge to admit or deny the allegations contained in the fifth paragraph of the Complaint.
  6. Defendant objects to the allegations stated in the sixth paragraph of the Complaint in that they call for a legal conclusion.  In so much as a response is required, Defendant denies.
  7. Defendant denies the allegations stated in the seventh paragraph of the Complaint.
  8. Defendant denies the allegations stated in the eight paragraph of the Complaint.
  9. Defendant denies the allegations stated in the ninth paragraph of the Complaint.
  10. Defendant specifically denies each and every allegation of the complaint not specifically admitted herein.
  11. Defendant specifically pleads the follow affirmative defenses:  arbitration and award and lack of subject matter jurisdiction - the underlying contract and terms and conditions contain a private arbitration clause which the Defendant has elected to exercise.  Therefore, this Court does not have jurisdiction to hear this matter.
  12. Defendant reserves the right to plead further and reserves objections on the basis of lack of jurisdiction over the subject matter, lack of jurisdiction over the person, failure to state facts upon which relief can be granted and failure  to join a party under Rule 19, if any.

WHEREFORE, pleading affirmatively, Defendant prays that the Complaint filed herein against him be dismissed, for his costs herein expended, and for any and all other just and proper relief.

DATED this <date>

Respectfully submitted,

<your signature>, pro se

<your address and phone number>

And the Certificate of Service from my other email

 

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2 hours ago, wernda1234 said:

Here is what I would suggest, using an answer template that I found out on the Arkansas Legal Service website.   I used that template when I answered my lawsuit.

Again, I am NOT an attorney.  These are just my ideas and I defer to the superior wisdom of the group.

You would reply to each paragraph.  If everything in the paragraph is true, you admit.  If everything is false, you deny.  If you don't know, then you have insufficient knowledge to admit or deny.  And you can do combinations.

Use the same header information on the complaint (centered in your document).  Your Answer should be double spaced.

Please do NOT cut and paste this.  I came up with this based on reading the Complaint - you need to make sure each answer is correct based on your understanding, not mine.

After all, you are the one signing it :)

ANSWER

     COMES NOW the Defendant, <your name>, pro se, and for his Answer to the Complaint filed herein against him, respectfully states as follows:

  1. Defendant has insufficient knowledge to admit or deny the allegations contained in the first paragraph of the Complaint
  2. Defendant admits he is a resident of Stone County, Arkansas.  Defendant has insufficient knowledge to admit or deny the remaining allegations contained in the second paragraph of the Complaint.
  3. Defendant has insufficient knowledge to admit or deny the allegations contained in the third paragraph of the Complaint.
  4. Defendant objects to the allegations stated in the fourth paragraph of the Complaint in that they call for a legal conclusion.  In so much as a response is required, Defendant denies.
  5. Defendant has insufficient knowledge to admit or deny the allegations contained in the fifth paragraph of the Complaint.
  6. Defendant objects to the allegations stated in the sixth paragraph of the Complaint in that they call for a legal conclusion.  In so much as a response is required, Defendant denies.
  7. Defendant denies the allegations stated in the seventh paragraph of the Complaint.
  8. Defendant denies the allegations stated in the eight paragraph of the Complaint.
  9. Defendant denies the allegations stated in the ninth paragraph of the Complaint.
  10. Defendant specifically denies each and every allegation of the complaint not specifically admitted herein.
  11. Defendant specifically pleads the follow affirmative defenses:  arbitration and award and lack of subject matter jurisdiction - the underlying contract and terms and conditions contain a private arbitration clause which the Defendant has elected to exercise.  Therefore, this Court does not have jurisdiction to hear this matter.
  12. Defendant reserves the right to plead further and reserves objections on the basis of lack of jurisdiction over the subject matter, lack of jurisdiction over the person, failure to state facts upon which relief can be granted and failure  to join a party under Rule 19, if any.

WHEREFORE, pleading affirmatively, Defendant prays that the Complaint filed herein against him be dismissed, for his costs herein expended, and for any and all other just and proper relief.

DATED this <date>

Respectfully submitted,

<your signature>, pro se

<your address and phone number>

And the Certificate of Service from my other email

 

When did you receive this complaint, it was filed beginning of June, and your just answering it.

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I was served July 3rd. So yeah my time is getting close but if I mail it today then everything should be OK.

@wernda1234 Thank you so much. I too found that same site but some of the questions didn't seem to really be questions. I guess that is just law. I will continue with the layout you provided.

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OK So I got my answer filed at the court house and certified it to the attorney that filed the complaint. I just wanna say how appreciative I am of the members that helped with this. I know its likely far from over but one step down.

@fisthardcheese Thanks on the advice of taking one step at a time. I am doing my best to follow that.

 

OK so the next step is to get an MTC ready. But I should have 30 days at least to get that ready if i understand correctly.

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I think so.  As I understand it, now that you have filed your Answer with the court and served plaintiff's attorneys with their copy, you are now in the discovery/pleading part of the civil process. 

You can file your MTC at any time, and @fisthardcheese has the all the information you need here:

I'd suggest getting the MTC done since you mentioned there is a second lawsuit pending, and once served with that, will need to focus on filing a timely Answer.

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44 minutes ago, Xtreme98 said:

@wernda1234 Is there anything i should know about filing an MTC here in Arkansas? I am looking at the sample the @fisthardcheese has and I'm not really sure what should be changed. It seems for the most part to fit but maybe that's because I don't know any better.

Every state, and sometimes every county within a state, has slightly different procedures for filing.  That is, in some places you file a motion and the court schedules a hearing.  In every county in my state except mine the person filing the motion schedules the hearing.  

You need to look up the Arkansas rules of civil procedure on the internet.  In addition, check the web site for your county courthouse.  In some cases the clerks can help you with procedural issues but NEVER legal issues.  In some courts the clerks are very helpful.  In others they are useless.  

Long story short, you need to do your homework on this one.  

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1 hour ago, Xtreme98 said:

@BackFromTheDebt Thanks for the info. I will contact the court and see if they can help with filing. I will also see if I can find the Arkansas rules of civil procedure you are talking about.

Xtreme98, among other places, you can find the 'Arkansas Rules of Civil Procedure' right here:

https://www.arcourts.gov/rules-and-administrative-orders/rules-of-civil-procedure

You can find a LOT of information here.  However, in many cases, if you want to find out what a certain rule means -- such as when the Plaintiff says they are "authorized to do business... according to 'Arkansas Code Annotated 4-27-1501," you can just 'Google' Arkansas Code 4-27-1501, and generally find a link directly referencing that section.  Of course, that's just an example.

Good luck!

Jimmy

 

 

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@Jimmy E Thanks for the information. I was typing this when i noticed your post. I will take a look at that site also and see what I can learn from it as well.

Talked to the ladies at the civil court office. They have no idea how to file a motion. Awesome! Im wondering about circuit court, if the filing would be the same since its the same county. I will be calling shortly to see what they have to say.

I did find the Arkansas Civil Procedures for motions.

Arkansas Judiciary - Rule 7. Pleadings And Motions. - 2018-08-31.pdf

 

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