Rexedwardsmooney Posted October 19, 2021 Report Share Posted October 19, 2021 I have been studying the robotic nature of debt collection lawyers for original creditors. In NY, the debt collection law firms always use the same affiant/employee of the OC. And when I try to google the affiant, there is nothing present on Linkedin or other sites. Odd given today's social media. 1) These law debt collecting law firms of OCs usually win on Account stated ("AS"). Due to my novice nature, I am trying to poke holes in AS. I read that AS is cause of action. And a cause of action is a condition under which 1 party can sue another. In a credit card case, default occurs when we miss payments. We are not responsible for paying the whole amount hence the interest that is charged. So should not the credit card lawsuits be based on missing the payment and NOT THE whole amount due? The creditor has right to sue for money owed? Owed is interest and the whole balance? So on default, the payment of the full balance is accelerated? So I am asking -Can the Account stated theory be only applied for the MINIMUM owed and not full balance? Is there a way to use this theory or is it just silly? 2) Lack of Standing - Chase Manhattan Bank ("Chase") acquired JPMorgan ("JPM") in 2000 in a stock deal. Chase and JPM remained wholly owned subsidiaries. But in credit card lawsuits, JPM is listed at the entity suing. Stock swap or stock purchase mergers don't not transfer contracts. Only asset acquisitions. New York law bars parent corporations from bringing direct suits aimed at vindicating injuries suffered by their subsidiaries.” Id.,citing NAF Holdings, LLC v. Li & Fung (Trading) Ltd., No. 10 Civ. 5762(PAE), 2013 WL 489020, at *7 (S.D.N.Y. Feb.8, 2013). As noted by the Federal Appeals Court for New York (the Second Circuit), a corporate subsidiary is a “separate corporation,” and the parent company thus does not have any inherent “standing to assert [the subsidiary's] legal rights.” Hudson Optical Corp. v. Cabot Safety Corp., No. 97–9046, 1998 WL 642471, at *3 (2d Cir. Mar.25, 1998) (summary order). Each corporation is a separate legal entity. It must enter into contracts on its own name and it must sue or be sued in its own name https://www.jonathancooperlaw.com/library/subsidiarys-breach-of-contract.cfm So in an Original creditor lawsuit, doesn't the OC like Chase have to show an assignment of contract to JPM? Corporations set up subsidiaries to protect them from liabilities so they should not be able to be enriched???? I think of this like real estate and corporate bankruptcies. So hence, why doesn't corporate credit law apply to consumer debt law? Debt is debt and there is a borrower and creditor... The Affiant in the affidavit is usually from JPM. Chase and JPM employees are not the same. I am still working through my case but noticed many of my friends at startups are going through debt cases too.... Sorry for my dumb questions and thoughts. Quote Link to comment Share on other sites More sharing options...
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