Sign in to follow this  
Casper

Attorney Referral Pending on your Discover Card Account

Recommended Posts

I got this e-mail from Discover:

 

This is a reminder that we are prepared to refer your account to an attorney to bring a lawsuit against you to collect the entire balance on the above referenced Discover Card account if payment arrangements are not made by 8:00pm Eastern time on 02/29/2020.
 
It is imperative that you contact us today to resolve this issue.
 
The transactions making up your account balance have been sent to you in your monthly statements.
 
If you have already made payment arrangements, please disregard this notice.
 
Hours: Monday-Friday 8:00 am to 9:00 pm, and Saturday 8:00 am to 12:00 pm Eastern time or at Cardmembersupport.com
 
.
 

We’re here to help.

 

 

So how do you defend an original creditor suit?  $13K

From my county court records, it looks like either Zwicker or Nathan & Nathan will get the case.  (Tennessee)

How would you go about getting any affidavit or CC statements stricken?

I already have a BK attorney I've met with a couple of times, so it looks like I will have to end up going that route.

 

Share this post


Link to post
Share on other sites
1 hour ago, Casper said:

So how do you defend an original creditor suit?  $13K

It's too early to tell, since we don't know for sure what records they will bring to court, but based on past reports about Discover, you likely have no shot at beating them in court.  Some have reported success in using arbitration to leverage more favorable settlement terms, but this means you have to be able to bring something to the bargaining table - somewhere in the neighborhood of 40% of the debt amount.  Otherwise arbitration is a complete waste of time for everyone.

Share this post


Link to post
Share on other sites

I'll update the thread as soon as I get the summons.  

I want to chapter 7 everything, but the personal property exemption in TN is $10K, and my truck is worth $13K.  I paid it off recently with an inheritance i got.  Iw ould have gone chapter 7 last year if it wasn't for the inheritance.

My BK lawyer said I would basically be forced into a Chapter 13, which I'd rather not do.

Share this post


Link to post
Share on other sites
5 hours ago, Casper said:

I'll update the thread as soon as I get the summons.  

I want to chapter 7 everything, but the personal property exemption in TN is $10K, and my truck is worth $13K.  I paid it off recently with an inheritance i got.  Iw ould have gone chapter 7 last year if it wasn't for the inheritance.

My BK lawyer said I would basically be forced into a Chapter 13, which I'd rather not do.

Well, in hindsight it might have been better to use the inheritance money to settle with Discover.  But that is in the past.

At this point, is there any way you can raise 40% of $13k?  Perhaps take out a loan at a bank or credit union with your truck as collateral?  Better still if you can get a pre-approval, or some sort of line of credit.  That way, if you can get a settlement, you can raise the money quickly.  

If that is the case, then you may well want to take them into arbitration.  Arbitration is used as leverage for the settlement.  

Share this post


Link to post
Share on other sites

I don't recall Discover ever making a deal, but I could be wrong. Their business model was to extend credit to higher risk customers and back it up with hyper-aggressive collection methods. Weren't they the first to spend thousands in arb to chase a $300 debt?

 

Share this post


Link to post
Share on other sites
14 hours ago, Goody_Ouchless said:

I don't recall Discover ever making a deal, but I could be wrong.

This guy reported getting a decent deal with Discover on a hybrid payment plan, but it was pre-suit, and he apparently spent a lot of time working with them. 

https://www.creditinfocenter.com/community/topic/330797-my-debt-settlement-275k-journey-ongoing/

 

Share this post


Link to post
Share on other sites

I can't remember the exact thread, but -- 

I do remember a thread where the debtor initiated in JAMS.  He made an offer (not sure if it was 40% or not), but Discover refused.  Later on in the arbitration, between the time when Discover got the bill for the hearing and the actual hearing, Discover accepted exactly the same deal they had rejected earlier.  

My case was a bit different.  In my case there was a legitimate SOL question.  I initiated in JAMS (NO underlying court case, I initiated just before they were going to sue) a few months before the SOL in my state, but 2+ years after the Delaware SOL.  The arbitrator hadn't ruled if we were gong to use Delaware SOL or my state's SOL.  So Discover accepted exactly the same settlement between the time they got the bill for the hearing and the actual hearing as they had rejected earlier.  In my case, the settlement was one I was very, very happy with.  

So there are at least two known cases in which arbitration was used to get a better settlement with Discover.  

 

YMMV.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this