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Sued by paypal despite demanding arbitration caluse in which Paypal owes all the fees


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1 hour ago, jmemn said:

But in their complaint Rausch Straum says they are "attorneys and debt collectors  for its claim against defendant."

 

Debt collection attorneys are considered to be debt collectors.  It doesn’t mean they are ones suing.  Can you please list the allegations (claims) in the complaint.  

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6 minutes ago, BV80 said:

Debt collection attorneys are considered to be debt collectors.  It doesn’t mean they are ones suing.  Can you please list the allegations (claims) in the complaint.  

claims.thumb.png.57a209d217e7202bde67e92e0b143eff.png

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1 minute ago, jmemn said:

Basically that just used boilerplate accusations.

If Synchrony is named as the plaintiff, that is the party suing you.  In the first sentence, replace the word “plaintiff” with “Synchrony”.

”Synchrony, by Rausch Sturm, attorneys and debt collectors, for its (meaning Synchrony) claim”

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9 hours ago, jmemn said:

Yes they sued me  -  but didn't file it  in court because no court no. But what's the point of this?  

Again, In Minnesota, lawsuits are started when the defendant is served, not when the case is filed in court. The process is called Pocket Docket (or Hip Pocket). Please Google that term if you do not believe me. What happens is that the summons and complaint are created and sent out for service. However, the plaintiff puts the court copies into their pocket to be used later.

So no, it has not been filed in court yet but the lawsuit has started and you need to send an answer to Rausch and Straum 20 days from this past Friday. Consider yourself sued. The good news though is that you send your answer to the plaintiff attorney and you too can keep your court copy in your pocket until they go to court which means you just pay the costs of service (which are the USPS costs) and not the court costs until the case gets into court.

As for the reasons behind this, there are many. In the case of JDBs, they use this process because they are not allowed in conciliation court and by doing so, they hope that less people file answers and they can get a default and do a sneak peek garnishment before having to pay the court fees. It also ended up with many people getting arrested and forced to post bail (which they would then garnish, regardless of who posted it) because they had not realized they had been sued. It was worse before the state legislature put in some stops (but the default rate is still about 98% here, even after all the changes). It also will not go away because a certain large organization in the SE part of the state uses these rules to keep their misdeeds from becoming public record.

So yes, you have been sued and you need to file an answer. I told you the process already.

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I would think you qualify for legal aid.  IMO you should call the local legal aid office and make an appointment ASAP (tomorrow Monday). You may qualify for a pro bono attorney to handle your case for you or at least walk you through it.   

As for answer from what you posted,

You can deny claim 1 if you don't live in county otherwise agree. 

You can deny claim 2 if account numbers don't match. 

"Yes, I had a card but it had identity theft charges on it and they refuse to stop harassing me about the debt. They only sent me statements and then sued me automatically despite my telling them I dispute the debt."

How much of the 7K is identity theft? did you send a letter? did you call and get a case number usually if you call they will give you a reference number. Since this is O.C. they will have all the records and someone to testify on them (meaning if this goes to court it will cost you money to defend and you will likely lose . Maybe they keep records of your dispute if you didn't and you can get in discovery to help your case.  

You will use above information to support you denial of #3 and #4. 

but yes claim identity theft and deny claims 3 and 4. 

Most important is to file answer within time limit or you can get default judgement for full amount that last for10 years gaining interest the whole time and can be renewed. They will just sit on it until your credit report looks good shows a job or you paying on accounts and then come after the money. 

Next consider pretrial discovery and see if you can get information about your identity theft claim.  Then get that amount remove and try to get on payment plan without a  stipulated judgment for remainder or less. 

I don't know what county your in but a google search should locate local legal aid office. I think this is your best hope as all the information to respond has been provide and your still having issues getting it executed. 

  

 

 

 

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9 minutes ago, Bulldoger said:

 

I would think you qualify for legal aid.  IMO you should call the local legal aid office and make an appointment ASAP (tomorrow Monday). You may qualify for a pro bono attorney to handle your case for you or at least walk you through it.   

As for answer from what you posted,

You can deny claim 1 if you don't live in county otherwise agree. 

You can deny claim 2 if account numbers don't match. 

"Yes, I had a card but it had identity theft charges on it and they refuse to stop harassing me about the debt. They only sent me statements and then sued me automatically despite my telling them I dispute the debt."

How much of the 7K is identity theft? did you send a letter? did you call and get a case number usually if you call they will give you a reference number. Since this is O.C. they will have all the records and someone to testify on them (meaning if this goes to court it will cost you money to defend and you will likely lose . Maybe they keep records of your dispute if you didn't and you can get in discovery to help your case.  

You will use above information to support you denial of #3 and #4. 

but yes claim identity theft and deny claims 3 and 4. 

Most important is to file answer within time limit or you can get default judgement for full amount that last for10 years gaining interest the whole time and can be renewed. They will just sit on it until your credit report looks good shows a job or you paying on accounts and then come after the money. 

Next consider pretrial discovery and see if you can get information about your identity theft claim.  Then get that amount remove and try to get on payment plan without a  stipulated judgment for remainder or less. 

I don't know what county your in but a google search should locate local legal aid office. I think this is your best hope as all the information to respond has been provide and your still having issues getting it executed. 

  

 

 

 

I just filed a JAMS demand and want to try a motion to compel arbitration. Do you think  that will work?

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THIS IS NOT LEGAL ADVICE THIS IS WHAT I THINK YOU ASKED WHAT I THINK. 

 I think the JAMS demand will not be responded until after they get default judgment when you don't answer (this is what they are waiting for). Then they will respond to your demand that is has been adjudicated in court and the demand is moot. 

   If you answer lawsuit now that you filed a demand with JAMS they may just pay the JAMS fees and go to arbitration and try to get your case ruled as frivolous and try to recover the cost of arbitration. 

Or they may just file the case in court and still not respond to JAMS Demand at this point you will have to file a MTC showing you filed JAMS per contract and you request case be stayed and adjudicated in JAMS.    

You will be out of pocket $600 in court cost plus $250 in JAMS fees. If you succeed and move case to JAMS at which point they may pay all fees as OC have been known to do and at the end you may have a 7-20K judgment instead of 7K judgment.  

    Since you are being sued by OC it will be hard to win in either court. 

It would be best file answer avoided default judgment and then try to remove amount of identify theft charges and get on payment plan for remainder amount or lump settlement if you got it.  

THIS IS NOT LEGAL ADVICE THIS IS WHAT I THINK YOU ASKED WHAT I THINK. 

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50 minutes ago, Bulldoger said:

THIS IS NOT LEGAL ADVICE THIS IS WHAT I THINK YOU ASKED WHAT I THINK. 

 I think the JAMS demand will not be responded until after they get default judgment when you don't answer (this is what they are waiting for). Then they will respond to your demand that is has been adjudicated in court and the demand is moot. 

   If you answer lawsuit now that you filed a demand with JAMS they may just pay the JAMS fees and go to arbitration and try to get your case ruled as frivolous and try to recover the cost of arbitration. 

Or they may just file the case in court and still not respond to JAMS Demand at this point you will have to file a MTC showing you filed JAMS per contract and you request case be stayed and adjudicated in JAMS.    

You will be out of pocket $600 in court cost plus $250 in JAMS fees. If you succeed and move case to JAMS at which point they may pay all fees as OC have been known to do and at the end you may have a 7-20K judgment instead of 7K judgment.  

    Since you are being sued by OC it will be hard to win in either court. 

It would be best file answer avoided default judgment and then try to remove amount of identify theft charges and get on payment plan for remainder amount or lump settlement if you got it.  

THIS IS NOT LEGAL ADVICE THIS IS WHAT I THINK YOU ASKED WHAT I THINK. 

Just wanted to clarify so why would the fees be more with JAMS instead of court? You are giving a range of 7-20K for JAMS instead of court.

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5.  What About an OC? - If you are dealing with an Original Creditor (not a JDB)  they may take the arbitration all the way through to the final hearing. Money is far less of an issue with the big banks, and unlike a JDB, these banks are not counting on collections as their sole source of income. Therefore, the OC banks will proceed with arbitration with much less trepidation than a JDB, so you must modify your strategy and expectations. With some OC's, they will never agree to a mutual walk away, however, using arbitration may help you get a much cheaper settlement offer than you would by staying in court.  My goal with an OC would be to use the long, slow arbitration process to buy some time to save up a lump sum to offer them for settlement. You can use the same settlement opportunity points as yo would with a JDB, but instead of "mutual dismissal", your offer may be to pay 50% of the debt, for instance (or what you can realistically offer as a lump sum payment) in exchange for a dismissal of their court case against you.  If you can't come to an agreement and go to the hearing and "lose" the final hearing with an OC, check your card agreement for any arbitration appeal language.  Some OCs like Discover and AmEx have an appeal option written into the contract.  The appeal is before a 3-arbiter panel. This means the arbitration process starts all over again, only this time you have 3-arbitrators which triples the bank's costs.  This is where arbitration costs can skyrocket well over $100,000.  After you file an appeal and get 3 arbitrators appointed, this is likely the best settlement opportunity with an OC. (when they are staring at a new $20k initial arbitrator retainer bill after just paying around $10k - 20k for the first arbitration in total). 

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1 minute ago, Bulldoger said:

5.  What About an OC? - If you are dealing with an Original Creditor (not a JDB)  they may take the arbitration all the way through to the final hearing. Money is far less of an issue with the big banks, and unlike a JDB, these banks are not counting on collections as their sole source of income. Therefore, the OC banks will proceed with arbitration with much less trepidation than a JDB, so you must modify your strategy and expectations. With some OC's, they will never agree to a mutual walk away, however, using arbitration may help you get a much cheaper settlement offer than you would by staying in court.  My goal with an OC would be to use the long, slow arbitration process to buy some time to save up a lump sum to offer them for settlement. You can use the same settlement opportunity points as yo would with a JDB, but instead of "mutual dismissal", your offer may be to pay 50% of the debt, for instance (or what you can realistically offer as a lump sum payment) in exchange for a dismissal of their court case against you.  If you can't come to an agreement and go to the hearing and "lose" the final hearing with an OC, check your card agreement for any arbitration appeal language.  Some OCs like Discover and AmEx have an appeal option written into the contract.  The appeal is before a 3-arbiter panel. This means the arbitration process starts all over again, only this time you have 3-arbitrators which triples the bank's costs.  This is where arbitration costs can skyrocket well over $100,000.  After you file an appeal and get 3 arbitrators appointed, this is likely the best settlement opportunity with an OC. (when they are staring at a new $20k initial arbitrator retainer bill after just paying around $10k - 20k for the first arbitration in total). 

Does Jams charge those kinds of arbitration fees realistically? 

 

I attached the relevant arbitration agreement.

arbitration clause.pdf

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“9….The parties will bear the fees and costs of their attorneys, witnesses and experts. However, the arbitrator will have the authority to award fees and costs of attorneys, witnesses and experts to the extent permitted by the Agreement, (Against your favor)the administrator’s rules or applicable law.” 

“10. The arbitration will take place by phone or at a location reasonably convenient to you. If you ask, we will pay all the fees the administrator or arbitrator charges if you cannot obtain a waiver of fees from the administrator and are acting in good faith (against your favor). We will always pay arbitration costs required by the administrator’s rules or that are necessary for this Arbitration section to be enforced.” (in your favor)

 

Cost can get high if you run them up. 

 

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1 minute ago, Bulldoger said:

“9….The parties will bear the fees and costs of their attorneys, witnesses and experts. However, the arbitrator will have the authority to award fees and costs of attorneys, witnesses and experts to the extent permitted by the Agreement, (Against your favor)the administrator’s rules or applicable law.” 

“10. The arbitration will take place by phone or at a location reasonably convenient to you. If you ask, we will pay all the fees the administrator or arbitrator charges if you cannot obtain a waiver of fees from the administrator and are acting in good faith (against your favor). We will always pay arbitration costs required by the administrator’s rules or that are necessary for this Arbitration section to be enforced.” (in your favor)

 

Cost can get high if you run them up. 

 

So you  quoted However, the arbitrator will have the authority to award fees and costs of attorneys, witnesses and experts to the extent permitted by the Agreement,  But  what  agreement  does that mean? Does  that  apply  to  JAMS?  I  heard some arbitration places don't award those kinds of costs.

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The credit card agreement which states 

the law will be:

Except as provided in the Resolving a Dispute with Arbitration section, this Agreement and your account are governed by federal law and, to the extent state law applies, the laws of Utah without regard to its conflicts of law principles. This Agreement has been accepted by us in Utah.

check what law is in Utah for far as awarding fees. 

Collection Costs
If we ask an attorney who is not our salaried employee to collect your account, we may charge you our collection costs. These include court costs and reasonable attorneys’ fees.

JAMS Rules

“(f) The Award of the Arbitrator may allocate attorneys' fees and expenses and interest (at such rate and from such date as the Arbitrator may deem appropriate) if provided by the Parties' Agreement or allowed by applicable law. When the Arbitrator is authorized to award attorneys' fees and must determine the reasonable amount of such fees, he or she may consider whether the failure of a Party to cooperate reasonably in the discovery process and/or comply with the Arbitrator's discovery orders caused delay to the proceeding or additional costs to the other Parties.”

 

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Unfortunately there is no such thing as legal aid in Minnesota when it comes to civil cases. Hell, even the public defenders office is way over worked and underfunded for criminal cases (it is not unusual for a public defender in Minnesota to be required to be in court in 2 or 3 different counties on the same day and time).

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1 minute ago, WhoCares1000 said:

Unfortunately there is no such thing as legal aid in Minnesota when it comes to civil cases. Hell, even the public defenders office is way over worked and underfunded for criminal cases (it is not unusual for a public defender in Minnesota to be required to be in court in 2 or 3 different counties on the same day and time).

 You got me,  I would have thought every state bar association would have set one up.  

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I hope you have not send your JAMS demand yet. You need to wait until the court orders that the plaintiff follow the contract into arbitration. I outlined the process that you need to do. If you choose not to follow that process, that is up to you.

I have a feeling however that you are collection proof (and in fact might even be homeless). I don't know if you get public assistance but if you do, odds are they cannot collect a dime from you while you get public assistance. The worse they can do to you is send a financial deposition to you and hope you do not answer but even then, odds are you will take the 3 meals and shelter at the county jail rather than pay the bail and in the end, that leaves them with a huge expense and nothing to collect. Not only that but judgements last only 10 years in Minnesota and are very expensive to renew. Most creditors do not renew a judgement.

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