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Bellona

Filed Answer & Counterclaim against LVNV FUNDING (Credit One Bank), now what?

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My husband had a credit card with Credit One Bank, couldn’t make the min. payments anymore because he worked for my company which was financially defrauded twice in 2015. I contacted Credit One by phone, followed up with a Company letter stating what had happened, included the FBI, FTC and several other report numbers, informed them that we both (I had a cc also) couldn’t make the payments for several months, that I may lose my business. Credit One wrote back, they didn’t have a program for hardship times and for me to get help from nonprofit organizations. Soon later I noticed that we had credit protection with Credit One for up to 6 month, where the protection would take over and make the min payments, late payments and membership payments were waived.

 I wrote Credit One how disappointed I was that they sent me to nonprofit agencies when I had insurance with them, for them to apply the insurance for the six months, close both accounts and to send me the ending statements with any paperwork I needed to fill out. I had lost my business.

 I never heard from them, I lost everything, had to move, they sold our debt with late charges, interest, etc., etc.

I received collection letters from May 2016 to January 2019 from 5 different collection agencies, then yesterday I receive this 1 inch package with all the statements which show deductions for credit protection,  5 different „Bill of Sale and Assignment of Accounts from Credit One Bank to X“, none matches the creditors which wrote me letters.

On some of the Bill of Sale letters, it states that this is a „charged-off“ Credit-Card Account, others state:  The Receivables transferred...were transferred prior to the „charge-off“. They do have the monthly statements, not any of the correspondence from/to Credit One.

Prior to filing the Answer and Counterclaim we called the attorney telling him we had insurance, we were willing to settle for something, he really didn’t want to listen.

He filed a Motion to dismiss Counterclaim because it fails to state a claim upon which relief can be granted. 

I have no clue what he is talking about, they filed in Justice Court and I am told if I make a mistake I could get a judgment up to $10k.

Any help would be appreciated, thank you.

 

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12 hours ago, Bellona said:

Soon later I noticed that we had credit protection with Credit One for up to 6 month, where the protection would take over and make the min payments, late payments and membership payments were waived.

Did you actually file to use the benefit?  It is not automatic and not all financial losses qualify for the coverage.  You have to apply and they approve or disapprove the coverage.

12 hours ago, Bellona said:

He filed a Motion to dismiss Counterclaim because it fails to state a claim upon which relief can be granted.

What exactly is your counter claim?

 

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I am in AZ, & I have dealt with LVNV before. Their lawyers are usually bottom of the barrel borderline incompetent but extremely aggressive & deceptive. LVNV will fold quickly when a MTC arbitration is granted & Credit One does have the arbitration option. However, if you filed an Answer & Counterclaim without a MTC arbitration or even electing it as an affirmative defense, don't be surprised if you try to use it after the fact & the lawyers are successful in arguing that you waived your right to arbitration by moving forward with the Counterclaim.  

Still, at this point, I would amend my Answer & file a MTC arbitration. Which Justice Court are you in? Some are better than others about following the laws on arbitration. If you are denied the MTC arbitration, your last remaining option then would be to file an Interlocutory Appeal to Superior Court. Be advised that this is not a guaranteed win or an inexpensive endeavor.  

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I also agree with the arbitration route. I know you feel swindled by them not applying the insurance coverage, but the reality is, clydesmom is probably right (especially with a bottom of the pool creditor like CreditOne) in that there is almost certainly a procedure for triggering the payments. You can read your card agreement if you're that interested in it, but honestly, i wouldn't bother. You said you could end up with a judgment against you if you "make a mistake". Honestly, you could do everything exactly right in court and still end up with a judgment. 

Getting the case out of court and in to arbitration is going to be your best bet at getting though this unscathed. 

You said they are asking for $10,000 judgment? Anything $10,000 or more is supposed to be filled in Superior Court. If the judgment they are asking for (minus court costs and legal fees) is less than $10,000 then justice court is the right venue. 

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I would file a Motion to Compel Arbitration (MTC). Information on this is in the arbitration link below in my signature.  Getting the judge to grant your MTC is key here.  Once this happens, you file an arbitration case against LVNV and if this were me, I would claim the unpaid insurance amount as a claim against them.  It won't get that far since LVNV does not arbitrate, but it is a good backup to have the arbitrator comb through the papers regarding the insurance and decide if they wrongly never applied it to your account.

But moving this out of court and into arbitration by filing that MTC is important and I would do that ASAP.

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1 hour ago, fisthardcheese said:

I would claim the unpaid insurance amount as a claim against them.

Agreed. IMO, this is a solid claim, in terms of getting over the already low frivolous bar. 

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_ first time in July, that was when the last pmt was made to the card, new bal=$598, my husband was unemployed. I borrowed money for my company, really got taken to the cleaners (id-Theft/fraud validated by FTC) We were in constant contact with Credit One, verbally and written correspondence, I wrote them to apply the insurance to both of our cards for the 6 month, send me the forms, close the cards and send me the ending statements. Instead, at the end of March 2016, they sold the debt standing at $996 to LVNV.

My husband made his CDL last year at age 71, he works out of Montana, lives in Arizona. He will lose up to 3 days work @300/day to be present at court. The attorney did not want to settle for less than $700 and that is not fair. I just pulled my husbands credit reports about 3 weeks ago because we like to straighten out his remaining debts and move along. We have never really recovered from what happ in court. The Plaintiffs attorney did not want to settle for less than $700 and that is not fair. I just pulled my husbands credit reports about 3 weeks ago because we like to straighten out his remaining debts and move along. We have never really recovered from what happened in 2015

P.S. there is something wrong with this window where I type in, it moves up, down, letters get erased, my entire answer was erased half an hour ago, not sure what‘s up

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I like to tkank for all these answers, I don‘ t know what OP is.

I will have to study some of the content I received from all of you, sincerely, I truly appreciate it.

I will have to get back to this site in a bit.

Bellona

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On 8/11/2019 at 3:32 PM, Clydesmom said:

Did you actually file to use the benefit?  It is not automatic and not all financial losses qualify for the coverage.  You have to apply and they approve or disapprove the coverage.

What exactly is your counter claim?

 

Yes, I wrote the bank to apply 6 month insurance , send me the forms, close the card and send me ending statements. My husband was involuntarily unemployed since I believe June or July 2015, his last pmt was 07/27/15. Statement balance then was $598, he never used the card again.

Counterclaim was 3 days lost wages, he made his CDL, works out of Montana, makes about $300/day when working; claim=$900. He had discussed the case with Plaintiffs attorney, attorney wanted minimum $700.

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I would forget everything about that for now and focus on getting an MTC filed immediately.

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