Ragan & Ragan, Velocity, and Prosper

[Nola D 1]

@BV80
 

Reposting after reading the forum rules.

1. Who is the named plaintiff in the suit? No one yet

2. What is the name of the law firm handling the suit? (should be listed at the top of the complaint.) Ragan and Ragan

3. How much are you being sued for? 12K

4. Who is the original creditor? (if not the Plaintiff) Prosper

5. How do you know you are being sued? (You were served, right?) not served yet

6. How were you served? (Mail, In person, Notice on door) not served yet

7. Was the service legal as required by your state? 

Process Service Requirements by State - Summons Complaint

8. What was your correspondence (if any) with the people suing you before you think you were being sued? Yes

9. What state and county do you live in? GA

10. When is the last time you paid on this account? (looking to establish if you are outside of the statute of limitations) 2 years ago 

11. When did you open the account (looking to establish what card agreement may be applicable)? 2016

12. What is the SOL on the debt? To find out: 2022

Statute of Limitations on Debts

13. What is the status of your case? Suit served? Motions filed? You can find this by a) calling the court or  looking it up online (many states have this information posted - when you find the online court site, search by case number or your name). Not served yet

14. Have you disputed the debt with the credit bureaus (both the original creditor and the collection agency?) no

15. Did you request debt validation before the suit was filed?   yes!!!! Note: if you haven't sent a debt validation request before being sued, it likely won't help create FDCPA violations, but disputing after being sued could be useful to show the court that you dispute the debt ('account stated' vs. 'breach of contract').

16. How long do you have to respond to the suit? (This should be in your paperwork). If you don't respond to the lawsuit notice you will lose automatically. In 99% of the cases, they will require you to answer the summons, and each point they are claiming. We need to know what the "charges" are. Please post what they are claiming. Did you receive an interrogatory (questionnaire) regarding the lawsuit?

Here is an example of what the summons/complaint may look like: Sued by a Debt Collector - Learn How to Fight Debt Lawsuits

17. What evidence did they send with the summons? An affidavit? Statements from the OC? Contract? List anything else they attached as exhibits. None yet 

18.  How did you find out about this site? Google

 

 

Edited August 9 by Sophias143
Incomplete info

[BV80 2,763]

11 hours ago, Sophias143 said:

 

An attorney for Ragan & Ragan representing Velocity sent a document to my home address about the debt I owed Prosper. I reached back out requesting a debt validation letter. The attorney replied via mail confirming the debt. She stated to call her to repay. The Prosper debt was charged off for $12000.  What should I do? I have access to a lawyer via prepaid legal from my employer. Should I wait? Ask for an arbitration? Try to settle? 

Please copy and answer the questions in the following thread in order for us to more adequately assist you.  

https://www.creditinfocenter.com/community/topic/242744-qs-to-answer-when-posting-in-this-forum-please-read/

 

[BV80 2,763]

13 hours ago, Sophias143 said:

Who is the named plaintiff in the suit? No one yet

The attorney letter didn’t name the company for which the law firm is collecting?

[Nola D 1]

@BV80 Velocity LLC. Basically 2 letters came: one to verify my address by the postmaster and 2nd a letter stating I owed them money, to call to pay in 30 days or else legal action would be taken.

I responded with a debt validation letter. 

They responded with the details of buying the debt. The attorney asked me to call to resolve.

These are the only choices I know of:

A. I could lay low and wait to get sued (I have access to an attorney)

B. I could call - to see if they will settle, pay arrangement? 

C. I  could start a the arbitration process in advance of being sued

Is there a 4th option? What do you suggest?

[BV80 2,763]

1 hour ago, Sophias143 said:

 

@BV80 Velocity LLC. Basically 2 letters came: one to verify my address by the postmaster and 2nd a letter stating I owed them money, to call to pay in 30 days or else legal action would be taken.

I responded with a debt validation letter. 

They responded with the details of buying the debt. The attorney asked me to call to resolve.

These are the only choices I know of:

A. I could lay low and wait to get sued (I have access to an attorney)

B. I could call - to see if they will settle, pay arrangement? 

C. I  could start a the arbitration process in advance of being sued

Is there a 4th option? What do you suggest?

Before you can consider arbitration, you would need to determine if your cardmember agreement contains an arbitration provision.   Go to the following site to get a copy of the agreement for the year you stopped paying.  It might be in the archives.

https://www.consumerfinance.gov/credit-cards/agreements/

 

[Nola D 1]

@BV80

Here is the arbitration clause. This was for a personal loan not a credit card.

[BV80 2,763]

@Nola D

You have a choice to make.  Considering you have access to an attorney, I might speak to him/her first.   If you are not satisfied with the attorney’s advice, you could go with arbitration. 

Hopefully, @fisthardcheesewill chime in on initiating arbitration with a JDB before a lawsuit has been filed.  

[fisthardcheese 1,466]

Can you show us the other page for the arbitration section.  You have JAMS as an option which is good.  Now we need to know what it says in terms of if they pay your filing fee and if there is any small claims exceptions in the arbitration section.

They have not sued you yet, correct?

[BV80 2,763]

47 minutes ago, fisthardcheese said:

Can you show us the other page for the arbitration section.  You have JAMS as an option which is good.  Now we need to know what it says in terms of if they pay your filing fee and if there is any small claims exceptions in the arbitration section.

They have not sued you yet, correct?

The OP said that the balance is $12,000.   She needs to look up the small claims limit in her court.

[Nola D 1]

@fisthardcheese please see attached. @BV80 the county where I live it’s $15K limit for small claims court

[Nola D 1]

@fisthardcheese and no they’ve not yet sued me

[fisthardcheese 1,466]

16 hours ago, BV80 said:

The OP said that the balance is $12,000.   She needs to look up the small claims limit in her court.

Georgia Magistrate Court (which works as a small claims court) has a limit of $15k.

On 8/9/2020 at 12:48 PM, Nola D said:

A. I could lay low and wait to get sued (I have access to an attorney)

B. I could call - to see if they will settle, pay arrangement? 

C. I  could start a the arbitration process in advance of being sued

Okay, eliminate C.  You never want to start arbitration before being sued unless you have one of the two card agreements that make small claims court difficult.  You don't have that.  So you have 2 options.  You fight them in court with arbitration which will ultimately cost you $250 or you can hire an attorney.  Most of the GA attorneys I know of will charge probably $600 for this case and make it go away. (And if you decide to go that route and you are in one of the counties surrounding Atlanta, I would suggest going with Skaar & Feagle, they have worked several great deals for me previously).

If you want to spend more and use an attorney, it basically means a phone call and a payment sent in right away, then sitting back and waiting for the dismissal of the lawsuit.  If you decide to use arbitration to save some money it will be a bit of work and you won't have to pay the $250 for likely 2 months after you are served with the lawsuit.

Which ever you choose, do NOT contact the collector's attorney.  That will never help you and at this stage they will not take less than almost 100% payment to end this.

[Nola D 1]

@fisthardcheese Thank you. I will heed your advice.