Being Sued by LVNV in Texas

[calfan415]

I've seen a lot of LVNV postings on here and I've tried to read up on it as much as possible.

 

It's a loan I had from Lending Club in 2019 that I was making on-time montly payments, but unfortunately 2020 hit and I was laid off and hit some hard times.

 

I got serve in January with the lawsuit and I tried to respond, but i don't think I did so successfully.

 

I now have a trial before the court date on May 12, 2022. This is the first time I've ever had anything like this happen, curious if there's a way to beat LVNV at this point.

 

Here's the info of the lawyer they're using:

• Plaintiff
   
  LVNV Funding, LLC
   
  Matthew W Cooper
   
  Scott & Associates, P.C., PO Box 115220, Carrollton, TX 75011-5220

 

 

What can I do and how should I handle court representing myself?

[nobk4me]

@texasrocker, any advice here?

[Bulldoger]

posting redacted copies of the loan contract, (see if arbitration is an option) your county I assume your in Justice court. Did you or Plaintiff request discovery?

 

[texasrocker]

22 hours ago, nobk4me said:

@texasrocker, any advice here?

What amount are you being sued for? 

Scott & Associates are second only to Rausch Sturm Israel & Hornik in Texas about not wanting to get up off their lazy butts to do anything besides file lawsuits in anticipation of default judgments.  They will likely fold when they see that you have merely submitted an answer.

[LaneBlane]

On 3/25/2022 at 11:04 AM, calfan415 said:

I've seen a lot of LVNV postings on here and I've tried to read up on it as much as possible.

I recently helped a friend who received a collection notice concerning a LendingClub account.   The account was eventually sold to a JDB.  Both the collection agency and the JDB provided her with a copy of a Borrower Agreement that includes an Exhibit A - Loan Agreement and Promissory Note.  Exhibit A contained many blank lines where information such as the principal amount of the loan and interest rate should have been written.

According to the first paragraph of the Borrower Agreement, the loan in question is governed by the terms of the Loan Agreement and Promissory Note.   The Loan Agreement and Promissory Note was signed electronically by LendingClub Corporation as the attorney-in-fact.  Section 6 of the Borrower Agreement reads, “Once the Loan Agreement and Promissory Note is signed by LendingClub or its designee acting as your attorney-in-fact, it is deemed executed on your behalf and shall be your valid and binding obligation thereafter.”  Also, Section 4 of the Borrower Agreement reads, “Your obligations, including your obligation to repay principal and interest, are set forth in the Loan Agreement and Promissory Note.”  If the Loan Agreement and Promissory Note fail to describe any principal or interest owed, I don't believe they can prove a debt exists.

I'm not sure if your particular agreement is similar to my friend's.  Did LVNV provide you with a copy of the agreements on your account?

 

[calfan415]

 

On 3/25/2022 at 9:25 PM, Bulldoger said:

posting redacted copies of the loan contract, (see if arbitration is an option) your county I assume your in Justice court. Did you or Plaintiff request discovery?

 

County Court. No neither I or Plaintiff has requested discovery

[texasrocker]

The best time to have sent discovery would have been when you filed your answer.  Send them this immediately via certified mail.

Edit to reflect your case and personal information and send to the attorney's office that filed the law suit.  Do not file with the court.

[calfan415]

On 3/25/2022 at 9:25 PM, Bulldoger said:

posting redacted copies of the loan contract, (see if arbitration is an option) your county I assume your in Justice court. Did you or Plaintiff request discovery?

 

Here's a copy of the arbitration clause in the borrower agreement:

[calfan415]

Might bea simple answer, but how do I fill ou the certificate of service?

 

[calfan415]

Also, what's the best way to send since I only have a PO box for them? certified mail? email?

[Flyingifr]

On 3/25/2022 at 9:04 AM, calfan415 said:

I've seen a lot of LVNV postings on here and I've tried to read up on it as much as possible.

It's a loan I had from Lending Club in 2019 that I was making on-time monthly payments, but unfortunately 2020 hit and I was laid off and hit some hard times.

I got serve in January with the lawsuit and I tried to respond, but i don't think I did so successfully.

I now have a trial before the court date on May 12, 2022. This is the first time I've ever had anything like this happen, curious if there's a way to beat LVNV at this point.

Here's the info of the lawyer they're using:

• Plaintiff
   
  LVNV Funding, LLC
   
  Matthew W Cooper
   
  Scott & Associates, P.C., PO Box 115220, Carrollton, TX 75011-5220

What can I do and how should I handle court representing myself?

I think a better question to ask might be "what can they do to collect on any judgement they might get?" Texas is one of the most debtor-friendly States in the country. It has a large Homestead exemption (unlimited), the entire value of one motor vehicle per licensed driver and a wildcard exemption of $50,000 for a single person and $100,000 for a family. In addition, Texas does not allow wage or salary garnishment.

So.... even if they do get a Judgment against you, the Judgment is more useful as wallpaper than as a collection tool.

[calfan415]

3 minutes ago, Flyingifr said:

I think a better question to ask might be "what can they do to collect on any judgement they might get?" Texas is one of the most debtor-friendly States in the country. It has a large Homestead exemption (unlimited), the entire value of one motor vehicle per licensed driver and a wildcard exemption of $50,000 for a single person and $100,000 for a family. In addition, Texas does not allow wage or salary garnishment.

So.... even if they do get a Judgment against you, the Judgment is more useful as wallpaper than as a collection tool.

Okay good to know. Sending them a motion to discovery and seeing their response

[Bulldoger]

1 hour ago, calfan415 said:

Okay good to know. Sending them a motion to discovery and seeing their response

Are you also filing a motion to comply arbitration? Or are you requesting a copy of promissory note / agreement in your discovery you can then file MTC when you get it. 

your contract is clear you have right to arbitrate.  

 

 

@calfan415 A little litigation activity will not waive your right to arbitration. Small v. Specialty Contractors, Inc., 310 S.W.3d 639, 646 (Tex. App.—Dallas 2010).

Sending and responding to the first set of discoveries is usually acceptable by Judges.   

So you should be o.k. with starting discovery as @texasrocker suggest,  However, I would also suggest reviewing the arbitration post in prepping of filing a MTC as a backup plan. I an sure  Scott & Associates  will fold after a MTC is filed or ordered if they didn't after answer and discovery.

[texasrocker]

20 hours ago, Bulldoger said:

Are you also filing a motion to comply arbitration? Or are you requesting a copy of promissory note / agreement in your discovery you can then file MTC when you get it. 

your contract is clear you have right to arbitrate.  

 

 

@calfan415 A little litigation activity will not waive your right to arbitration. Small v. Specialty Contractors, Inc., 310 S.W.3d 639, 646 (Tex. App.—Dallas 2010).

Sending and responding to the first set of discoveries is usually acceptable by Judges.   

So you should be o.k. with starting discovery as @texasrocker suggest,  However, I would also suggest reviewing the arbitration post in prepping of filing a MTC as a backup plan. I an sure  Scott & Associates  will fold after a MTC is filed or ordered if they didn't after answer and discovery.

No! Absolutely do not send discovery if you plan to go the arbitration route.

[calfan415]

@texasrocker got sent via certified mail a Affidavit of Business Records, is that something I can get dismissed as evidence?

[texasrocker]

15 minutes ago, calfan415 said:

@texasrocker got sent via certified mail a Affidavit of Business Records, is that something I can get dismissed as evidence?

It is covered in the discovery I provided regarding their own employee signing it who actually knows nothing about the case.  It is highly unlikely that they will answer it.

[calfan415]

On 4/20/2022 at 10:40 AM, texasrocker said:

It is covered in the discovery I provided regarding their own employee signing it who actually knows nothing about the case.  It is highly unlikely that they will answer it.

Do you have something I can prepare to file a Motion to Compel once the 30 days is up?

[texasrocker]

On 4/21/2022 at 10:34 AM, calfan415 said:

Do you have something I can prepare to file a Motion to Compel once the 30 days is up?

Yes, of course.  Give them another week or so after that and we will proceed then.

[calfan415]

@texasrocker should I ask for continuance, my trial date is 5/12?

[calfan415]

On 4/21/2022 at 2:57 PM, texasrocker said:

Yes, of course.  Give them another week or so after that and we will proceed then.

So this upcoming Monday will be 2 weeks since the receive Discovery, should I file MTC this next week?

[texasrocker]

2 hours ago, calfan415 said:

So this upcoming Monday will be 2 weeks since the receive Discovery, should I file MTC this next week?

They have 30 days to answer discovery and five days grace period is plenty of time to give for slow mail etc. After that send them a letter via certified mail stating that if you do not receive the answers to discovery within seven days then you intend to file a motion to compel the answers and the forward flow agreement showing the complete chain of ownership of the alleged account.  Send letter to the attorney's office that filed the law suit, do not file it with the court.

[texasrocker]

On 4/26/2022 at 10:17 AM, calfan415 said:

@texasrocker should I ask for continuance, my trial date is 5/12?

  File for a 60-day continuance based on the fact that you still need time to see their answers to discovery and formulate your defense.  

I would expect the court to grant it for at least 30 days but that is barely enough time.  Having sat there twiddling your thumbs for three weeks could come back and bite you. 

[calfan415]

On 4/29/2022 at 8:24 PM, texasrocker said:

  File for a 60-day continuance based on the fact that you still need time to see their answers to discovery and formulate your defense.  

I would expect the court to grant it for at least 30 days but that is barely enough time.  Having sat there twiddling your thumbs for three weeks could come back and bite you. 

The law firm filed a motion for defualt judgement

[texasrocker]

20 minutes ago, calfan415 said:

The law firm filed a motion for defualt judgement

Did you send them a copy of your original answer?

[calfan415]

13 minutes ago, texasrocker said:

Did you send them a copy of your original answer?

I just checked and when I e-filed and e-serve looks like their contact info was not on there. I didn't even realize it. This is my first time being in court for anything and I just missed it.