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Sued in Florida by SOC


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Hello all you lovely people. After successfully settling a prior lawsuit with a MTC arb, I have been served another summons by another JDB. Cardholder agreement does have an arb clause. Wondering if anyone has any advice to offer here? Due to the amount of the suit, I was considering hiring a lawyer that deals with JDB lawsuits, and has great reviews from previous clients. However I'd love a perspective before I start making decisions here. 

 

1. Who is the named plaintiff in the suit?

Sp*ing 0aks Capita* SPV, LLC

2. What is the name of the law firm handling the suit? (should be listed at the top of the complaint.)

None listed, just the name of attorney

3. How much are you being sued for?

$3500+

4. Who is the original creditor? (if not the Plaintiff)

Cross River Bank 

5. How do you know you are being sued? (You were served, right?)

Served with a Summons

6. How were you served? (Mail, In person, Notice on door)

In Person

7. Was the service legal as required by your state?

Yes

8. What was your correspondence (if any) with the people suing you before you think you were being sued?

Believe some phone calls were made that were never answered

9. What state and county do you live in?

Polk County, FL

10. When is the last time you paid on this account? (looking to establish if you are outside of the statute of limitations)

Not outside SOL (05/2021 was last payment date)

11. When did you open the account (looking to establish what card agreement may be applicable)?

2020

12. What is the SOL on the debt? To find out:

5 Years

13. What is the status of your case? Suit served? Motions filed? You can find this by a) calling the court or  looking it up online (many states have this information posted - when you find the online court site, search by case number or your name).

Suit Served

14. Have you disputed the debt with the credit bureaus (both the original creditor and the collection agency?)

No

15. Did you request debt validation before the suit was filed? Note: if you haven't sent a debt validation request before being sued, it likely won't help create FDCPA violations, but disputing after being sued could be useful to show the court that you dispute the debt ('account stated' vs. 'breach of contract’).

No

16. How long do you have to respond to the suit? (This should be in your paperwork). If you don't respond to the lawsuit notice you will lose automatically. In 99% of the cases, they will require you to answer the summons, and each point they are claiming. We need to know what the "charges" are. Please post what they are claiming. Did you receive an interrogatory (questionnaire) regarding the lawsuit?

Appearance in court necessary by 1/11/23. Answer or Motion is not needed and does not excuse court appearance.

17. What evidence did they send with the summons? An affidavit? Statements from the OC? Contract? List anything else they attached as exhibits.

Bill of Sale from Upgrade and Spring Oaks Capital with over 4 pages of signatures front and back

Loan Agreement and Promissory Note from original creditor with an e signature

Original Borrower Agreement

Creditor Terms of Use

Statements of payments made, including last payment made to creditor

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Make sure agreement is complete agreement, sometimes the JDB leaves it out when filing complaint. If you have original copy look through that you may be just find an arbitration page that was left out. 

I would have consultation with attorney your thinking of using he probably has dealt with the attorney suing and they have a standard settlement arrangement that makes case go away quickly an for an amount you save money and plaintiff makes money.

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I've never heard of that particular JDB, but the general experience here is that most JDBs will fold when faced with arb.  (Some OCs will too, especially if the amount of the debt is low.)  I would file the MTC Arb (not an answer, since you are in Florida), and see what happens.   If it doesn't work, you can always settle later.

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8 hours ago, nobk4me said:

I've never heard of that particular JDB, but the general experience here is that most JDBs will fold when faced with arb.  (Some OCs will too, especially if the amount of the debt is low.)  I would file the MTC Arb (not an answer, since you are in Florida), and see what happens.   If it doesn't work, you can always settle later.

Really need to emphasize 

 

Florida arbitration rules are different.  Follow instructions precisely. 
 

File an MTC and NO ANSWER 

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  • 2 weeks later...

I got sued by a junk debt buyer for credit card debt about a year ago. The amount they claimed I owed was a little more than what the junk debt buyer in your case is demanding. The alleged debt i was sued for was more than $4000 but less than $5000.

I filed a motion to compel private arbitration in response to the lawsuit. I did not hire an attorney. Soon afterwards, the junk debt buyer had me sign an agreement for a mutual dismissal with prejudice. I didn’t pay the junk debt buyer one penny, the junk debt buyer dropped their case against me, and the debt came off of my credit report. The outcome was as good as I could have hoped for.

Based on my experience and what others have posted here, I believe you can do this on your own without an attorney. The junk debt buyer in your case very likely paid less than $300 for your debt. It will cost them thousands of dollars to pay all of the arbitration fees and attorney fees to continue to prosecute the case once private arbitration is approved by the court. Junk debt buyers generally are looking for easy default judgements, they do not want to spend a lot of time to fight defendants that will cost them a lot of time and money.

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22 hours ago, iluv2write said:

I got sued by a junk debt buyer for credit card debt about a year ago. The amount they claimed I owed was a little more than what the junk debt buyer in your case is demanding. The alleged debt i was sued for was more than $4000 but less than $5000.

I filed a motion to compel private arbitration in response to the lawsuit. I did not hire an attorney. Soon afterwards, the junk debt buyer had me sign an agreement for a mutual dismissal with prejudice. I didn’t pay the junk debt buyer one penny, the junk debt buyer dropped their case against me, and the debt came off of my credit report. The outcome was as good as I could have hoped for.

Based on my experience and what others have posted here, I believe you can do this on your own without an attorney. The junk debt buyer in your case very likely paid less than $300 for your debt. It will cost them thousands of dollars to pay all of the arbitration fees and attorney fees to continue to prosecute the case once private arbitration is approved by the court. Junk debt buyers generally are looking for easy default judgements, they do not want to spend a lot of time to fight defendants that will cost them a lot of time and money.

Thanks for your advice. I have successfully gotten a settlement with a previous JDB using an MTC arb, given the amount I just didn't know if I should pursue the same avenue. Filed my MTC a few days. In FL you still have to show up to the pre-trial conference which is in a few weeks so we'll see what happens before then. 

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  • 3 weeks later...

Pre-Trial conference passed, opposing attorney was not present, had representative instead, when asking court to grant MTC, they said I would need to schedule a hearing for the judge to hear the MTC. No one gave me a straight answer on how to request this hearing. They postponed the pre-trial conference. Any advice? Should I file a Motion for Continuance? How does one regularly request a hearing from the judge presiding over the case. 

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53 minutes ago, Crazynstupid321 said:

I have and they were useless. They told me a date had been set but that's clearly for the pre-trial conference. One clerk said I have to go submit paperwork but when I went to the court, the clerk representative told me the same thing about the pre-trial conference 

This may not be your county, but the rules may be similar and could give you an idea of what to do.

http://www.ca.cjis20.org/pdf/judge/Hardt_ office_procedures.pdf

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Polk small claims does not have a form. I found one general from 

https://www.flcourts.gov/content/download/685873/file_pdf/923.pdf

You must schedule your Motion for a Hearing before the assigned Judge . You must coordinate a mutually agreeable time and date for the Hearing, (Call clerk find out what dates and time are available for hearing get a few then call attorney see if one works for them then call clerk and have them earmark to your case.  Date must be no less than five working days advance Notice of Hearing to the opposing party or attorney, in writing.

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  • 1 month later...
2 hours ago, Crazynstupid321 said:

What have you guys seen happen based on prior experiences

Usually the JDB will decline to pay the arb fees, JAMS will close the case, eventually, and the court case will be dismissed, either on their motion or yours.  If they do pay the arb fees, then you will have to proceed with the case in JAMS.  The next move is up to them.

And, congrats on your MTC Arb being granted.

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  • 1 month later...
On 2/28/2023 at 3:09 PM, nobk4me said:

Usually the JDB will decline to pay the arb fees, JAMS will close the case, eventually, and the court case will be dismissed, either on their motion or yours.  If they do pay the arb fees, then you will have to proceed with the case in JAMS.  The next move is up to them.

And, congrats on your MTC Arb being granted.

They have unfortunately paid the arb fees. Shocking that they paid $1750 for a 3500 debt

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10 hours ago, Bulldoger said:

I wonder if they know another $3K-4K fees are coming?

If they pay them, it’s probably because they know that legal fees are tax deductible because it’s part of the cost of doing business.

Some peop,e think that creditors and debt buyers lose all the money they spend in lawsuits and arbitration.  They don’t.  The losses are a tax deduction.

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19 minutes ago, Crazynstupid321 said:

Possibly not, all of the paralegals had to make JAMS accounts, and were asking the case manager questions about why certain people couldn't access the case. 

It could be these guys have no idea what they are doing. 
I had a JAMS case like that once. I swamped the other side with paperwork and suddenly they were much more interested in settlement, especially since they saw the cost of an in person hearing. 
 

In my situation they would have had to rent a conference room in my county courthouse and pay to bring an arbitrator up from Chicago (I am in Wisconsin).  I also had some strong arguments against their case.  So the settlement I got may be better than what you could get. 
 

 

 

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  • 1 month later...
  • 2 weeks later...
On 5/22/2023 at 8:15 PM, Crazynstupid321 said:

Well, they paid the $5k retainer. This is all for a $3k debt. 
 

Wonder if they want to argue frivolous case. Looking for advice moving forward 

Do you have any claims against them at all?  Went to Jams and lost.  Portfolio paid all the fees without blinking.  They tried for fees and arbitrator denied it saying I was just misinformed on the law representing prose and that it was not frivolous.  I recall searching google for questions to ask the custodian of records.  I received full discovery so they had to turn over everything they wanted to use in the hearing.  It was a hearing by zoom as the judge kind of pushed it that it didn't need to be an in person hearing with todays technology.  After the loss Portfolio waited the waiting period and then filed with the court.  I never thought it would work but they accepted 33% of the debt amount after the award was filed with the court.  It is a scary process not going to lie.  If you don't understand anything about the process always ask the Jams admin that is assigned to your case.  My admin was super helpful so if I didn't understand something they explained it.  The fact that the arbitrator does not have to follow the law is 100%.  I tried my best at the custodian of records to have the arbitrator state in the award they were a trustworthy person.  Good luck and sorry you're going through this. 

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It sounds like they are all looking for the Holy Grail of sticking debtor with fees and costs for a "frivolous" claim. Maybe the industry got together and is offering a bounty to whoever can pull this off. Otherwise if makes no sense that they would lose money on each arbitration just to prove to us that they "will follow."

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41 minutes ago, Goody_Ouchless said:

It sounds like they are all looking for the Holy Grail of sticking debtor with fees and costs for a "frivolous" claim. Maybe the industry got together and is offering a bounty to whoever can pull this off. Otherwise if makes no sense that they would lose money on each arbitration just to prove to us that they "will follow."

They’re not losing as much as people think.  Legal fees incurred in the course of doing business are tax deductible.  If arbitration is considered a legal expense and part of doing business, then those fees would be deductible.  

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