GetClearOfDebt

Response to anticipated lawsuit

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So...as of recently I believe the debt (disputed) a JDB...Portfolio Recover Associates...has been trying to collect is time-barred.  Periodic correspondence over the past year (!) has requested PRA provide proof of origination of claimed debt, a full payment history, etc.  Each communication has stated clearly that the debt was in dispute and not acknowledged as valid.  At one point a complaint was also filed with the CFPB for misleading correspondence from PRA.  It was also made clear that the response to any type of filing would be a request for arbitration per the alleged agreement.  Whatever has been happening on the other end of this...the clock appears to have run out.

I'm curious about tactics from here.  I assume PRA is likely to still file an action...and I'd need to respond.  Based on what I've read I'd assert an affirmative defense that the debt is is now time-barred.  But would I first respond that court was an improper venue and the action should be taken to arbitration...then point out that the debt is time-barred there? It seems like I'd want to do that, to get into the venue the agreement they contend I'm party to stipulates as the proper forum, then call out the time-barred status there.

Comments/thoughts?  TIA!

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It would be almost unheard of for them to sue you on a debt that is truly beyond the statute of limitation.  If they do, I would file a motion to dismiss on the grounds that the debt is beyond the statute of limitations.  If that doesn't work and you have to subsequently file an answer, state arbitration as an affirmative defense in your answer and file a motion to compel private contractual arbitration.

Have you already verified that arbitration is a viable option?  Not all OCs include it in their agreements, and some OCs put exceptions for small claims courts in their arbitration provisisons.

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Thanks for the response.  I have indeed double-checked the agreement (I'm assuming OC is Original Creditor) PRA contends I'm subject to...arbitration is in there, no exceptions that I can see.  I just took another look...it seems very consumer-friendly (relatively speaking).  The only clause it contains Re: small claims court says (paraphrasing) that the creditor will not file for arbitration if the consumer elects to take action in small claims, there's nothing at all about the creditor filing there.

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Ok, you should be good to go then.  Like I said, it would be very surprising if they actually filed a lawsuit on a time barred debt, but keep an eye out just in case.

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