MikeS

Being sued by Midland Credit Management and Portfolio Recovery Associates in Ohio

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7 hours ago, MikeS said:
 

Not that I was expecting it this soon, but the last account I have out there which is a citi bank card owned by Cavalry SPV sent me a letter from a law firm that they placed the debt with.

The letter was the standard: "This debt, owned by Cavalry.......has been placed with our office for collection........ Unless you notify this office within 30 days.......we will assume the debt is valid......"

I'm guessing after that 30 days is up they'll be free to sue so i probably want to, based on reading other threads here, quickly file the demand for arb. The citi card contract only gives me AAA as a choice.

Should I attempt to make any contact with the law office first or just go straight to filing arb and then go from there since I'm potentially working with limited time?

No, you should send a DV/dispute letter within the 30 days.  Hold off on filing arb until you are sued and you file the MTC Arb and that is granted.  Just like you are doing with the other cases.

And, maybe they won't sue. Often they don't.  I think Citi has a small claims exception in their arb clause, but since Cavalry is a JDB you don't have to worry about that.  JDBs can't use small claims court in Ohio.

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59 minutes ago, nobk4me said:
 

No, you should send a DV/dispute letter within the 30 days.  Hold off on filing arb until you are sued and you file the MTC Arb and that is granted.  Just like you are doing with the other cases.

And, maybe they won't sue. Often they don't.  I think Citi has a small claims exception in their arb clause, but since Cavalry is a JDB you don't have to worry about that.  JDBs can't use small claims court in Ohio.

The Citi card does have a small claims exception that is why i was worried. 

I wasnt sure exactly how that worked here in Ohio. In Stow Municipal Court it is called the Small Claims Division. https://stowmunicourt.com/rule-no-35-small-claims-division/

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20 hours ago, nobk4me said:
 

No, you should send a DV/dispute letter within the 30 days.  Hold off on filing arb until you are sued and you file the MTC Arb and that is granted.  Just like you are doing with the other cases.

And, maybe they won't sue. Often they don't.  I think Citi has a small claims exception in their arb clause, but since Cavalry is a JDB you don't have to worry about that.  JDBs can't use small claims court in Ohio.

Is https://www.creditinfocenter.com/forms/sampleletter9.shtml everyone's favorite DV letter? I saw one other here but it looked much shorter.

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2 hours ago, MikeS said:

Is https://www.creditinfocenter.com/forms/sampleletter9.shtml everyone's favorite DV letter? I saw one other here but it looked much shorter.

I would simply reference the collection account number in my letter header and state “I dispute the above-referenced debt and request validation.”  

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22 hours ago, MikeS said:

The Citi card does have a small claims exception that is why i was worried. 

I wasnt sure exactly how that worked here in Ohio. In Stow Municipal Court it is called the Small Claims Division. https://stowmunicourt.com/rule-no-35-small-claims-division/

Ohio muni courts have a small claims division, but also hear cases that are not small claims, if the amount is $15K or less.  Check out the Ohio Revised Code on small claims court. It clearly states assignees (which is what a JDB is) can't use it. I'd link but I'm not sure how with this smartphone.

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22 minutes ago, nobk4me said:

Ohio muni courts have a small claims division, but also hear cases that are not small claims, if the amount is $15K or less.  Check out the Ohio Revised Code on small claims court. It clearly states assignees (which is what a JDB is) can't use it. I'd link but I'm not sure how with this smartphone.

R.C. 1925.02 Jurisdiction: 

(a) A small claims division does not have jurisdiction in any of the following:

(ii) Actions on any claim brought by an assignee or agent, except a claim to recover taxes that is filed by any authorized employee of a political subdivision or any authorized officer or employee of the state or a claim filed by a person designated under section 1925.18 of the Revised Code to act as the representative of a prosecuting attorney;

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1 hour ago, BV80 said:
 

I would simply reference the collection account number in my letter header and state “I dispute the above-referenced debt and request validation.”  

Something more like this?

 

Date

Your Name
Your Address

Debt Collector's Name
Address

RE: Account Number ________________

To Whom It May Concern:

I dispute the above-referenced debt and request validation.

Your Name

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1 hour ago, nobk4me said:

Ohio muni courts have a small claims division, but also hear cases that are not small claims, if the amount is $15K or less.  Check out the Ohio Revised Code on small claims court. It clearly states assignees (which is what a JDB is) can't use it. I'd link but I'm not sure how with this smartphone.

 

55 minutes ago, Robby8900 said:

R.C. 1925.02 Jurisdiction: 

(a) A small claims division does not have jurisdiction in any of the following:

(ii) Actions on any claim brought by an assignee or agent, except a claim to recover taxes that is filed by any authorized employee of a political subdivision or any authorized officer or employee of the state or a claim filed by a person designated under section 1925.18 of the Revised Code to act as the representative of a prosecuting attorney;

Sounds good. I will send my DV letter and then wait to see what happens later. Clearly I've had success with Stow Muni Court compelling arbitration.

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2 hours ago, MikeS said:

Something more like this?

 

Date

Your Name
Your Address

Debt Collector's Name
Address

RE: Account Number ________________

To Whom It May Concern:

I dispute the above-referenced debt and request validation.

Your Name

Yes. 

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I'm very happy to report that the attorney for the Midland case submitted a Notice of Dismissal and the case is now closed.

Since this action was done within the 14 days before the Magistrate's order took effect to compel arbitration does anyone know if them refilling later on would constitute an FDCPA violation? 

I know that under Ohio Civil code 41B i would be able to recoup my costs for motions in this suit if they were to file again and easily be able compel arbitration again and probably better enforce the Rotman case forcing them to have to file but I'm just looking ahead in case they are just kicking the can down the road because of Covid.

Or do you think this would likely be the end of it?

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21 minutes ago, MikeS said:

I'm very happy to report that the attorney for the Midland case submitted a Notice of Dismissal and the case is now closed.

Since this action was done within the 14 days before the Magistrate's order took effect to compel arbitration does anyone know if them refilling later on would constitute an FDCPA violation? 

I know that under Ohio Civil code 41B i would be able to recoup my costs for motions in this suit if they were to file again and easily be able compel arbitration again and probably better enforce the Rotman case forcing them to have to file but I'm just looking ahead in case they are just kicking the can down the road because of Covid.

Or do you think this would likely be the end of it?

Well, since the judge did not specify that the plaintiff is the party that must commence arbitration proceedings, an FDCPA claim could be iffy.  In any case, they’d be stupid to refile because they know you would MTC again, and you have the previous order that would show they chose to dismiss rather than file in arbitration   


 

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11 minutes ago, BV80 said:

Well, since the judge did not specify that the plaintiff is the party that must commence arbitration proceedings, an FDCPA claim could be iffy.  In any case, they’d be stupid to refile because they know you would MTC again, and you have the previous order that would show they chose to dismiss rather than file in arbitration   


 

Good to know, thanks for all the help. Now to get rid of PRA and hopefully keep Cavalry from filing.

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Need some opinions.

I received an email from the attorney of the PRA case. Just as a quick recap, the debt they sued for is $1,800 and the court has compelled arbitration. I'm filed with JAMS.

In his email, he has offered $400 to settle the matter and avoid arbitration. Settlement would include a mutual release. 

Does this sound like a good deal or should I hold out for less?

It seems like this is missing some important details like stipulating that this would close the account and that no further balance is due. Also how they would report this to credit agencies.

Thoughts?

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Depends if you think it's worth it to put the matter to rest. PRA has been paying arb fees in some cases posted here.

Get the settlement details in writing.  Include any additional issues like those you mentioned.  Also be aware of tax consequences of a settlement.  You will get a Form 1099 C for the remainder of the debt.

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49 minutes ago, nobk4me said:

Depends if you think it's worth it to put the matter to rest. PRA has been paying arb fees in some cases posted here.

Get the settlement details in writing.  Include any additional issues like those you mentioned.  Also be aware of tax consequences of a settlement.  You will get a Form 1099 C for the remainder of the debt.

That was certainly my concern as well. I dont want to press my luck too much and have them decide they will see the arb process through. I'm not too concerned about the tax implications. It's still better than paying the entire amount to PRA.

Am I forgetting about anything I should be asking for in writing? Showing 0 balance, account closed, reported to 3 major credit reporting agencies as closed or deleted from credit report? 

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I thought about it some more and the following are my terms for the settlement:

IN WRITING on company letter head.

$400

Case dismissed WITH PREJUDICE in Stow Municipal Court

I will notify JAMS that I am withdrawing my claim.

The account would reflect having a ZERO balance and NO additional amount would be owed

I will have no further obligation to this account

The account will be closed

The account will be removed from credit reporting agencies.

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And, upon your payment of $400, the debt is settled in full and PRA will not sell the account.

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36 minutes ago, nobk4me said:

And, upon your payment of $400, the debt is settled in full and PRA will not sell the account.

Would the stipulation that the balance shows as zero and the account closed not cover that? Trying not to be redundant but also dont want to miss something.

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On 7/14/2020 at 9:30 AM, MikeS said:

I thought about it some more and the following are my terms for the settlement:

IN WRITING on company letter head.

$400

Case dismissed WITH PREJUDICE in Stow Municipal Court

I will notify JAMS that I am withdrawing my claim.

The account would reflect having a ZERO balance and NO additional amount would be owed

I will have no further obligation to this account

The account will be closed

The account will be removed from credit reporting agencies.

I hate all of it.

It's their first offer.  I would counter.  Tell them you are confident in your claims you are bringing against their client in arbitration, but in the interest of time and further expense, you are willing to accept a mutual release for no exchange of money.

A mutual release is a contract stating that you have NO LIABILITY regarding the account.  So your laundry list of crap is already included.  Don't over complicate it.

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On 7/14/2020 at 7:57 PM, MikeS said:

Would the stipulation that the balance shows as zero and the account closed not cover that? Trying not to be redundant but also dont want to miss something.

My feeling is it never hurts to be thorough and cover all the bases.   I have seen some cases where a person settles with one JDB and the account is sold to another one. Which then tries to collect the balance.

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15 hours ago, nobk4me said:

My feeling is it never hurts to be thorough and cover all the bases.   I have seen some cases where a person settles with one JDB and the account is sold to another one. Which then tries to collect the balance.

If I have a settlement agreement that states I am released of all liability and another JDB comes collecting on it, do you know how thrilled I would be to have that bonus $1k check on it's way to me shortly thereafter?

Same goes for any CRA that verifies the account upon my dispute.  Another $1k bonus to me.  Not my fault they can't read or comply with a contract that states I have NO LIABILITY.

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On 7/7/2020 at 9:13 PM, MikeS said:

 

Sounds good. I will send my DV letter and then wait to see what happens later. Clearly I've had success with Stow Muni Court compelling arbitration.

I got a response back from the attorneys office for managing the Citi card with Cavalry. Their cover letter states the current balance is $2118.47 but on the most recent statement that they actually sent me, the balance is listed as $1687.31. 

Can they legally report to credit reporting agencies a balance that is higher than what they have sent me statements for in their DV response?

What is my next move here?

Should I dispute the amount of the debt with credit reporting agencies? Or would that not do any good here?

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