FredG.

Received Court Summons from Velocity Investments, Need Help

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Hello all,

this is my first post but I have been reading through the site for a few months trying to find similar cases to help me. But it is all getting a little confusing. I think my case differs from most I have read here because of the amount of my bad debt. It is $10,000 owed to Lending Club, that has been sold to Velocity Investments (I live in South Carolina). So any hopes of arbitration scaring them off due to cost probably doesn't apply to my case because they can still profit off of me. I tried to work with Lending Club in 2016 but was told they could no longer accept my payments and I really don't want to pay a JDB that bought my debt for pennies on the dollar. I wouldn't hesitate to work with Lending Club.

I received a Summons filed by Velocity Investments representing law firm, Clarkson and Hale, delivered by a Sheriff's Deputy. It was the usual respond in 30 days or we will seek a default judgement against you. That was in June and after reading here I responded with a Debt Validation letter, which I also gave a copy of to the Clerk of Court.

The law firm has now responded with Plantiff's First Set of Interrogatories to Defendent, Plantiff's First Requests for Production to Defendent, Plantiff's First Requests for Admissions to Defendent, and Certificates of Mailing. I now have a copy of my contract with Lending Club and have 30 days to respond.

I'm not sure what I need to do next, I have been reading here and I'm still unsure. I think they send all of these forms with legal terminology to intimidate. Do I respond to them with a request for arbitration and file with AAA or Jams for arbitration? I am sure they will accept arbitration in my case due to the amount, should I just try to settle with them and save myself the hassle?

I am getting close to the 30 day response time, I did find a consumer advocacy lawyer on this website they I am going to give a call tomorrow to see if he can review my case. At this point, would it be devastating for me if I go past the 30 days?

Thanks guys for any help.

FredG.

 

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If this were me, I would file a Motion to Compel Arbitration immediately and then respond to discovery with objections due to a jurisdictional issue addressed in the pending MTC.

Any arguments on if it is too late or not is up to the other side to present.  If they don't, then it should be accepted by the court. If they do, it can be addressed when you get their response.

I would absolutely use JAMS if this were my case and I wouldn't expect the amount they sued for to make much of a difference than any other JAMS consumer case.

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3 hours ago, fisthardcheese said:

If this were me, I would file a Motion to Compel Arbitration immediately and then respond to discovery with objections due to a jurisdictional issue addressed in the pending MTC.

Any arguments on if it is too late or not is up to the other side to present.  If they don't, then it should be accepted by the court. If they do, it can be addressed when you get their response.

I would absolutely use JAMS if this were my case and I wouldn't expect the amount they sued for to make much of a difference than any other JAMS consumer case.

Just so I'm clear, when you say discovery that means the debt validation I requested and received?

When I file the MTC with the law firm, do I need to take anything to the Clerk of Court or does my filing with JAMS suffice?

Thanks.

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Discovery was what the Plaintiff sent you: Plantiff's First Set of Interrogatories to Defendent, Plantiff's First Requests for Production to Defendent, Plantiff's First Requests for Admissions to Defendent, and Certificates of Mailing.

I am not up on SC law; in AR, everything has to be filed with the court and served to the Plaintiff

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There was a poster here, don't recall who, who used arb, and the JDB walked on almost $18K.  

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4 hours ago, wernda1234 said:

Discovery was what the Plaintiff sent you: Plantiff's First Set of Interrogatories to Defendent, Plantiff's First Requests for Production to Defendent, Plantiff's First Requests for Admissions to Defendent, and Certificates of Mailing.

I am not up on SC law; in AR, everything has to be filed with the court and served to the Plaintiff

Okay, thanks for the response.

So I need to...

1. Find a template of a MTC, complete and send to the law firm along with a copy of Arbitration Clause in my original contract with Lending Club

2. Go to JAMS website and file a claim with them

3. After those are done, draft answers to the discovery and send to the law firm

Do I need to do anything with the court right now? File any of the above items with them? I did file the Debt Validation with them too.

 

Thanks guys for any and all help received.

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10 hours ago, FredG. said:

Okay, thanks for the response.

So I need to...

1. Find a template of a MTC, complete and send to the law firm along with a copy of Arbitration Clause in my original contract with Lending Club

2. Go to JAMS website and file a claim with them

3. After those are done, draft answers to the discovery and send to the law firm

Do I need to do anything with the court right now? File any of the above items with them? I did file the Debt Validation with them too.

 

Thanks guys for any and all help received.

No.  Read the arbitration link in my signature below.  You have it almost completely backwards.  Do NOTHING with JAMS right now.  You must file the motion with the court and wait for the court to grant your motion.  There may be a hearing involved.  You must respond to their discovery requests in the time allowed.

The debt validation is meaningless once you are in court.

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3 hours ago, fisthardcheese said:

No.  Read the arbitration link in my signature below.  You have it almost completely backwards.  Do NOTHING with JAMS right now.  You must file the motion with the court and wait for the court to grant your motion.  There may be a hearing involved.  You must respond to their discovery requests in the time allowed.

The debt validation is meaningless once you are in court.

I read through the arbitration link.

I'm now wondering why they sent the discovery to me after my debt validation request and gave me 30 days to reply. According to what I read, isn't it kind of pointless now? So my response to the discovery should just state, "Objection due to jurisdictional issue addressed in pending MTC" to every question?

I looked up SC law when it comes to filing motions and had a question about the 3 parts below: 

[ (c) Form and Content of Motions and Petitions. All motions or petitions filed in an appellate court shall be in writing, shall state the grounds thereof, and shall comply with the requirements of Rule 267. The pages of the motion or petition and all supporting documents shall be consecutively numbered. Each motion or petition shall include the following:

(1) A certificate or affidavit of service reflecting the date of service upon all parties. The original certificate or affidavit of service must be filed with the original motion or petition.

(2) A memorandum with citation of authorities in support of the motion.

(3) Where the Record on Appeal or Appendix has not been filed, or where the facts relied upon in support of the motion are not contained in the Record on Appeal or Appendix, the parties shall file affidavits and other documents in support of their positions.]

No. 1 is asking for an affidavit to be written and notarized showing the date all parties have been served with the MTC right? Not sure what 2 and 3 are asking. I was going to use the example MTC and take a copy of the contract showing the arbitration clause to court and file both. Do I need an affidavit?

Thanks again.

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2 minutes ago, FredG. said:

I'm now wondering why they sent the discovery to me after my debt validation request and gave me 30 days to reply. According to what I read, isn't it kind of pointless now? So my response to the discovery should just state, "Objection due to jurisdictional issue addressed in pending MTC" to every question?

What they sent you had absolutely nothing to do with any debt validation.  They are simply going through the required court procedures.  You must respond to each and every question they ask in the discovery filing.

A certificate of service does not need to be notarized.  I would suggest you find and read other motions filed in your court by attorneys.  Find any other case - debt collections would be best but any case will do.  Look at how the attorneys wrote and filed their motions.  The certificate of service will be the last page and simply state that you mailed a copy to the other side's attorney.

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9 hours ago, fisthardcheese said:

What they sent you had absolutely nothing to do with any debt validation.  They are simply going through the required court procedures.  You must respond to each and every question they ask in the discovery filing.

A certificate of service does not need to be notarized.  I would suggest you find and read other motions filed in your court by attorneys.  Find any other case - debt collections would be best but any case will do.  Look at how the attorneys wrote and filed their motions.  The certificate of service will be the last page and simply state that you mailed a copy to the other side's attorney.

I found my case online and noticed that it listed my status as, " Pending/ADR/Alternative Dispute Resolution (Workflow)." Date for completion is like 210 days from the original filing by the lawfirm, it's dated due 12/06/19. 

Also while searching for examples of motions filed in South Carolina, I found one form used that states, " Effective January 1, 2016, Alternative Dispute Resolution (ADR) is mandatory in all counties, pursuant to Supreme Court Order dated November 12, 2015." That is referring to a South Carolina Supreme Court ruling. Does that mean I should not have a hard time being approved for arbitration?

The motion form I found is attached.

Any thoughts?

Thanks!

SCCA234.pdf

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11 hours ago, fisthardcheese said:

I would suggest you find and read other motions filed in your court by attorneys.  Find any other case - debt collections would be best but any case will do.  Look at how the attorneys wrote and filed their motions.  The certificate of service will be the last page and simply state that you mailed a copy to the other side's attorney.

I have been searching for hours, can't find a motion from an attorney that does not look like my summons type format. The one I attached in my post above is actually a cover letter.

I have to file tomorrow.I guess I will use the example in your arbitration link. In paragraph 6 of your example there are 4 blanks, do I need to fill in something there?

Thanks.😟

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Just wanted to come back and update my particular case. I don't want to be one that asks repeatedly for help, get it, and never provide updates as to what happened.

I filed the MTC with the Clerk of Court on 8/30/19. Have not heard anything back yet, nothing from the lawyer or anything from the court.

Guess now I sit and wait for a response.

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On 8/29/2019 at 10:24 PM, FredG. said:

I found my case online and noticed that it listed my status as, " Pending/ADR/Alternative Dispute Resolution (Workflow)." Date for completion is like 210 days from the original filing by the lawfirm, it's dated due 12/06/19. 

Also while searching for examples of motions filed in South Carolina, I found one form used that states, " Effective January 1, 2016, Alternative Dispute Resolution (ADR) is mandatory in all counties, pursuant to Supreme Court Order dated November 12, 2015." That is referring to a South Carolina Supreme Court ruling. Does that mean I should not have a hard time being approved for arbitration?

The motion form I found is attached.

Any thoughts?

Thanks!

SCCA234.pdf 252.46 kB · 1 download

Court ADR is NOT private arbitration according to the loan contract.  You may have to go through a court mandated mediation (or arbitration) but that is not the arbitration you are asking for.  If you have to go through this process, simply deny all allegations and state that you want to move the case to JAMS arbitration per the contract.  This should end the mediation ADR meeting and then the judge can decide on your MTC.

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