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What next after DV


Flirtykumquat
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Back in December a collection office has turned over my account to a law office. I got the standard letter from them about trying to collect a debt. I sent a DV letter. I received a notice from them yesterday and all it is, is a 1 page copy of a statement. I dont know if its the last statement or what. I am pretty sure they will sue me but is there a follow-up I can send?

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9 hours ago, Flirtykumquat said:

Back in December a collection office has turned over my account to a law office. I got the standard letter from them about trying to collect a debt. I sent a DV letter. I received a notice from them yesterday and all it is, is a 1 page copy of a statement. I dont know if its the last statement or what. I am pretty sure they will sue me but is there a follow-up I can send?

Does the balance on the copy of the statement match the balance they claim you owe?  Is it a credit card debt?

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2 hours ago, Flirtykumquat said:

Okay so from here do I send a letter about settlement or what is my next step

Calling is quicker, and you can have a discussion.  I would not admit to liability for the debt or agree to anything before receiving specific details in writing.  

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3 hours ago, Flirtykumquat said:

Okay so from here do I send a letter about settlement or what is my next step

You could settle, if the amount you settle for is low enough.

You have several options at this point, some of them very good, some of them very bad. 

Realize, since this is a Synchrony Card, you could go to arbitration, and usually pay no more than $250.  You would have to take some time.,

1. You can settle.  Knowing that you will only be out about $250 plus your time if you arbitrate, you can try to settle for an amount not much more than $250.  Good side:  This gets the matter taken care of once and for all, for an amount of money you are comfortable with.  Bad side:  MOST of the time it will be marked on your credit report as paid off for less than the full amount.  

2. Pay For Delete (PFD).  In this case, you generally work out an arrangement to pay the entire amount, and they delete it from your credit report.  Good side:  This is the best for your credit rating.  Bad side: You pay off the entire debt.

3.  Pre-emptive arbitration.  Generally you only do this for a very good reason.  For example, if you are in a situation where it would be very bad for you to have a law suit on your record, OR you could not possibly handle this in court, but you have a spouse who could handle it in arbitration.  Good side:  You get the case taken care of quietly, off of any public records.  Bad side: in a few cases, pre-emptive arbitration has come to bite people badly, in that the other side winds up seeing the whole thing through when normally they wouldn't.  One possibility is to immediately send a settlement offer for $250 or less as soon as you send the arbitration papers.  

4. Wait for them to sue; file an MTC.  This is usually the cheapest way to settle the case.  You generally win this way, and generally pay no more than $250.  Good side:  often the cheapest option, and sometimes they never sue.  Bad side: The case is on your record, and it may not be the best for your credit rating.

5. Wait for them to sue, fight in court.  Good side: sometimes they walk away when challenge, and you win completely. Occasionally they never sue.   Bad side: the vast majority of the time you lose 100% of what they sue for.

6. Do absolutely nothing.  This is the worst option by far.  Good side:  there is no good side.  Bad side:  You lose.  

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On 1/25/2021 at 1:32 PM, BackFromTheDebt said:

You could settle, if the amount you settle for is low enough.

You have several options at this point, some of them very good, some of them very bad. 

Realize, since this is a Synchrony Card, you could go to arbitration, and usually pay no more than $250.  You would have to take some time.,

1. You can settle.  Knowing that you will only be out about $250 plus your time if you arbitrate, you can try to settle for an amount not much more than $250.  Good side:  This gets the matter taken care of once and for all, for an amount of money you are comfortable with.  Bad side:  MOST of the time it will be marked on your credit report as paid off for less than the full amount.  

2. Pay For Delete (PFD).  In this case, you generally work out an arrangement to pay the entire amount, and they delete it from your credit report.  Good side:  This is the best for your credit rating.  Bad side: You pay off the entire debt.

3.  Pre-emptive arbitration.  Generally you only do this for a very good reason.  For example, if you are in a situation where it would be very bad for you to have a law suit on your record, OR you could not possibly handle this in court, but you have a spouse who could handle it in arbitration.  Good side:  You get the case taken care of quietly, off of any public records.  Bad side: in a few cases, pre-emptive arbitration has come to bite people badly, in that the other side winds up seeing the whole thing through when normally they wouldn't.  One possibility is to immediately send a settlement offer for $250 or less as soon as you send the arbitration papers.  

4. Wait for them to sue; file an MTC.  This is usually the cheapest way to settle the case.  You generally win this way, and generally pay no more than $250.  Good side:  often the cheapest option, and sometimes they never sue.  Bad side: The case is on your record, and it may not be the best for your credit rating.

5. Wait for them to sue, fight in court.  Good side: sometimes they walk away when challenge, and you win completely. Occasionally they never sue.   Bad side: the vast majority of the time you lose 100% of what they sue for.

6. Do absolutely nothing.  This is the worst option by far.  Good side:  there is no good side.  Bad side:  You lose.  

 

 

 

 

1. Settling is about $7500 unless they bring it down. I did a consult with a lawyer who literally said (Oh Frank I know him..I can settle it for about 50% and I will charge you 1000 but arbitration is not the way to go)

2. Its not even on my credit report and it was deleted off my credit report back in 2018

4. I am in Florida so is it still a MTC or something else

 

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15 hours ago, Goody_Ouchless said:

Ha - yea, he hates arbitration because he and "Frank" don't make squat.

 

To be clear;

Very few consumer attorneys like arbitration because:

1.  They don’t understand it. 
2.  They don’t have experience with it. 
3. It goes against their normal way of making money.  
 

One would guess that this attorney and Frank know each other and have worked with each other quite a bit.  If the consumer attorney gets involved in the case, he knows he and Frank can work out a deal of 50% over lunch, and he can bill you $1000 for the money you save.  
 

If you take it into arbitration, you are in terra incognita for these attorneys.  If Frank can get extra money from his client, he may fight it tooth and nail to rack up his fees.  This could cost tens of thousands for his client.  If Frank doesn’t have the time, or the client isn’t willing to spend tens of thousands — the most usual case — then they walk away and you win for the $250 filing fee. 

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