Being sued in Colorado for old Prosper account

[Baddog]

Just got served for a Prosper/Web Bank account almost 6 years old for $5000 that was bought by CACH 5 years ago. The summons has not been filed in court yet but it does have a date to answer by. The law firm handing this is Machol & Johannes. This is the 3rd time over the past 5 years they have served me with one of these for this same account, the other two they never filed the actual suit. My guess is they are using these as scare tactics, this one though I think they will file since the SOL is up in 2 months. The previous 2 times I called them and told them I am on SSDI and both times they said that they wouldn't file because I was 'uncollectable'. This time I emailed them and told them once again I was on SSDI, am recovering from cancer surgery and had no other income. A few hours later someone called from their office and said she was not an Attorney but wanted to let me know they received the email and to make sure I respond to the court before the date on the summons.

I am not planning on ignoring this but I have a few questions. 

Since they have not yet filed the suit should I still file an answer with the court including a MTC for arbitration? I am assuming if/when they do file I will not receive any other notification. Does the fact that they have previously sent these to me violate FDCPA? I'm guessing not but it doesn't seem right to me that they can keep serving me over the course of years with suits that have not been filed, it feels like harassment.

Any help would be appreciated!

 

 

 

[Clydesmom]

2 hours ago, Baddog said:

Since they have not yet filed the suit should I still file an answer with the court including a MTC for arbitration?

Double check Colorado's rules of civil procedure.  It may be a "pocket docket" state which means the suit is not considered officially filed until you answer.

If you are collection proof due to being on SSDI and that will not change I would not worry about a MTC.  Simply file a general denial and show up to the hearing if they follow through this time.  The reality is even if they get a judgment they cannot levy your bank account as long as you don't keep more than 2 months of SSDI benefits in the account or co-mingle it with non-exempt funds.

2 hours ago, Baddog said:

I am assuming if/when they do file I will not receive any other notification.

Depends on what the rules of your court are.  DO NOT assume anything when it comes to being sued.

2 hours ago, Baddog said:

Does the fact that they have previously sent these to me violate FDCPA? I'm guessing not but it doesn't seem right to me that they can keep serving me over the course of years with suits that have not been filed, it feels like harassment.

No it isn't.  It is frustrating and irritating by they can dismiss their own case and refile as long as the SOL is not expired.

[WhoCares1000]

I would send an answer back to them as a general denial and then as affirmative defense, put in "Lack of jurisdiction due to private contractual arbitration." At that point, you can see if they go further or not. Especially since they know you are collection proof. They might try and file anyways in the hope of getting a judgement and you winning the lottery 5 years down the road. If they do file, you then file the MTC arbitration and see how much money they are willing to spend for a maybe able to collect someday. My bets is that the minute you file the MTC, they will run. You can even call them after you know they received your answer and tell them what you are going to file an MTC with the court.