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Response from ARB/LVNV Help?

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Could someone please tell me what this means in lame mans terms :D Response I got on an ARB I submitted. 

 

Dear Parties:

 

Claimant has filed with us a demand for arbitration. We note that the arbitration clause provides for arbitration by the American Arbitration Association (“AAA”).

 

Prior to the filing of this arbitration, the business failed to comply with the AAA’s policies regarding consumer claims. Accordingly, we must decline to administer this claim and any other claims between LVNV Funding LLC and its consumers at this time. These policies can be found on our web site, www.adr.org, in the Consumer Due Process Protocol (“Protocol”) and the Consumer Arbitration Rules (“Consumer Rules”), including the Costs of Arbitration.

 

Accordingly, we have administratively closed our file and will refund any payment received by the filing party. According to R-1(d) of the Consumer Rules, should the AAA decline to administer an arbitration, either party may choose to submit its dispute to the appropriate court for resolution.

 

If you believe we have declined this matter in error, please email ConsumerFiling@adr.org.

 

Pursuant to the AAA’s current policy, in the normal course of our administration, the AAA may maintain certain electronic case documents in our electronic records system. Such electronic documents may not constitute a complete case file. Other than certain types of electronic case documents that the AAA maintains indefinitely, electronic case documents will be destroyed 3 months after the date of this letter.

 

If LVNV Funding LLC advises the AAA in the future of its intention to comply with the AAA’s Consumer Arbitration Rules and if applicable, resolves any outstanding payment obligations, the AAA may consider at its sole discretion, accepting newly filed consumer cases going forward. Therefore, if the business wishes for the AAA to consider accepting consumer disputes going forward, the business must, at a minimum, register its clause on the Consumer Clause Registry on our website, www.adr.org/clauseregistry. Upon completion of the registration process and confirmation from the AAA that the business is now active on the Consumer Clause Registry, the business is responsible for informing all parties that Claimant may re-file their claim.

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Also... KEEP ALL YOUR RECORDS OF THIS CLAIM IN A SAFE PLACE!!!  It sounds like they don't plan to preserve their records of you filing this claim more than several months, so you will need to be responsible for keeping your own records.  You may have to re-file if LVNV ever gets back in their good graces again before the SOL runs out.

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4 hours ago, legaleagle2012 said:

It means they never pay their fees, so AAA won't take a claim involving them. PRA is in the same boat. Now they are basically screwed; they can't utilize the court system to sue you because you petitioned for arb, and the forum in THEIR contract won't take their claims. 

 

 

 

3 hours ago, Burdell said:

Also... KEEP ALL YOUR RECORDS OF THIS CLAIM IN A SAFE PLACE!!!  It sounds like they don't plan to preserve their records of you filing this claim more than several months, so you will need to be responsible for keeping your own records.  You may have to re-file if LVNV ever gets back in their good graces again before the SOL runs out.

Thank you! Any advice on next steps? Do I pay this, will it be removed? I'm not sure where to go now. 

 

Thanks again!

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Whether you pay it is up to you at this point. It sounds like they won't be able to compel you to pay. You should be receiving a filing fee refund from the arbitrator (AAA), if I read their letter correctly.  The debt will fall off your credit reports about seven years after date of last activity, although in my experience you can usually get negative trade lines deleted after 6 to 61/2 years.

 

ALTHOUGH...  I am worried by this paragraph in AAA's letter:

"Accordingly, we have administratively closed our file and will refund any payment received by the filing party. According to R-1(d) of the Consumer Rules, should the AAA decline to administer an arbitration, either party may choose to submit its dispute to the appropriate court for resolution."

 

It sounds like they are saying that since arbitration is not an option, either you or LVNV could re-file with the court. I don't know what "Consumer Rules" they are referencing, and I don't know if those rules would over-ride the arbitration clause in your contract for this account.  You might want to consult a consumer law attorney.

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AAA can't change state law or the underlying contract. The contract says arb is an option and the parties agree not to use the courts. (generic) You DEMANDED arb. They refuse to arbitrate. That is not a valid reason to go back to court. You cannot profit from your own bad acts.

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2 hours ago, legaleagle2012 said:

AAA can't change state law or the underlying contract. The contract says arb is an option and the parties agree not to use the courts. (generic) You DEMANDED arb. They refuse to arbitrate. That is not a valid reason to go back to court. You cannot profit from your own bad acts.

I don't mind paying, just didn't want sued. My end game is to get it off my reports, is this something I just need to wait to fall off?

 

12 hours ago, Burdell said:

Whether you pay it is up to you at this point. It sounds like they won't be able to compel you to pay. You should be receiving a filing fee refund from the arbitrator (AAA), if I read their letter correctly.  The debt will fall off your credit reports about seven years after date of last activity, although in my experience you can usually get negative trade lines deleted after 6 to 61/2 years.

 

ALTHOUGH...  I am worried by this paragraph in AAA's letter:

"Accordingly, we have administratively closed our file and will refund any payment received by the filing party. According to R-1(d) of the Consumer Rules, should the AAA decline to administer an arbitration, either party may choose to submit its dispute to the appropriate court for resolution."

 

It sounds like they are saying that since arbitration is not an option, either you or LVNV could re-file with the court. I don't know what "Consumer Rules" they are referencing, and I don't know if those rules would over-ride the arbitration clause in your contract for this account.  You might want to consult a consumer law attorney.

 

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It can take 7 years for negative items to fall off your credit reports, although you can usually get them deleted sooner than that with a little effort. Some creditors will accept pay-for-delete offers, not sure if LVNV is one of them. But if you don't mind paying and getting the item deleted from your reports is a priority, it might be worth pursuing.  You probably have considerable leverage now, if it's true that they cannot force you back into court.

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11 hours ago, legaleagle2012 said:

AAA can't change state law or the underlying contract. The contract says arb is an option and the parties agree not to use the courts. (generic) You DEMANDED arb. They refuse to arbitrate. That is not a valid reason to go back to court. You cannot profit from your own bad acts.

I'm inclined to agree with you, just wasn't sure what "Consumer Rules" that AAA is referring to -- it's not a section of the contract, is it?  In any event, it doesn't seem right that LVNV can avoid arbitration that is provided for in the contract simply by refusing to pay for it. That sounds like breach of contract in itself.

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It is breach of contract. Problem is, you don't have any damages for a breach suit. It's also IMO an FDCPA violation. PRA pulled this on someone I know; they got a copy of a proposed federal petition to compel arbitration in their mailbox, and they wrote a sizable check to make this person go away.

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On 11/28/2019 at 5:45 AM, legaleagle2012 said:

It is breach of contract. Problem is, you don't have any damages for a breach suit. It's also IMO an FDCPA violation. PRA pulled this on someone I know; they got a copy of a proposed federal petition to compel arbitration in their mailbox, and they wrote a sizable check to make this person go away.

Hi legaleagle,

 

What do you recommend I do from here? I would definitely go the pay for delete route if that is an option. These are the last two major items on my wife's report that we would like to get off before purchasing a car. 

 

I'll take any advice for next steps! Thanks. 

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On 12/4/2019 at 5:57 AM, legaleagle2012 said:

You don't have to pay them unless you want to. They cannot take you back to court.

 

On 12/2/2019 at 10:28 AM, Jasso20 said:

Hi legaleagle,

 

What do you recommend I do from here? I would definitely go the pay for delete route if that is an option. These are the last two major items on my wife's report that we would like to get off before purchasing a car. 

 

I'll take any advice for next steps! Thanks. 

Hi All,

 

I recently got this response back from Resurgent, wondering what I should do with it? Thank you!

 

"We are provided the following information regarding the account-holder's legal rights in response to a recent communication regarding the above-referenced account.

 

For further assistance, please contact one of our Customer Service Representatives toll-free at 1-888-665-0374

 

Sincerely,

 

 

Customer Service Department

Resurgent Capital Services L.P."

 

 

Then have a "Please read the following important notices as they may affect your rights." with some language about notifying them within 30 days to dispute the validity. 

 

Got 2 of these on the accounts I filed arb on. 

 

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It sounds like they have gone back to square one, which means you want to ensure you craft a well-written dispute that also asserts any protections under State law that might exist (where the statutes actually can have some teeth). 

 

DO NOT send some generic piece of crappy crap crap.  Cut and paste drivel is NOT your friend!

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A dispute? I thought I won this with arbitration? 

On 12/4/2019 at 5:57 AM, legaleagle2012 said:

You don't have to pay them unless you want to. They cannot take you back to court.

LE Can you take a look for me? Thanks

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On 11/27/2019 at 5:38 PM, Burdell said:

That sounds like breach of contract in itself.

One could argue that an entity cannot be in breach of a contract to which the two parties have not agreed...after all, the defaulted debtor has never entered into a contractual agreement with the purchaser of the paper.  There is also a valid argument on the other side that the purchaser of the paper has, for all intents and purposes, consented to the Agreement following the purchase of the paper. 

 

I have never taken the time to look at how this paragraph has fared if such an argument has been made in any manner of litigation...not my circus and not my clowns.

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On 12/27/2019 at 7:18 AM, legaleagle2012 said:

I have no idea why they sent you that. They still can't go back to court.

So.. my wife was served today by LVNV and a PI, I guess.. now what?

 

Original Notice and Petition for a Money Judgement. 
 

I thought they couldn’t sue me?

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They can legally sue, but you have a perfect special defense with arbitration invoked. You can countersue if you know how to write up a complaint and are creative. 

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2 hours ago, legaleagle2012 said:

They can legally sue, but you have a perfect special defense with arbitration invoked. You can countersue if you know how to write up a complaint and are creative. 

Any chance I could get a hand with that, or pointed in the direction of someone who could. I’d pay for your services. 

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You do not indicate what level of court the case has been filed in.  Also not discussed in THIS thread is the PRECISE wording of the language in the Cardholder Agreement as it relates to Arbitration.  Even with an Agreement that calls for arbitration as an option, there are some that allow litigation in a low-level court WITHOUT arbitration kicking in...

 

DO NOT pay for shadow counsel, especially to a person who is not licensed by the Bar.  However, a member of the Bar should not be accepting funds to play shadow counsel to begin with precisely because it can be a quick avenue to LOSING that card (which would mean an inability to practice, which then means an inability to effectively earn a living).  If you do not hire counsel to represent you, then you HAVE to ensure that you understand each and every document you prepare for submission to the Court and opposing counsel. 

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32 minutes ago, centex said:

You do not indicate what level of court the case has been filed in.  Also not discussed in THIS thread is the PRECISE wording of the language in the Cardholder Agreement as it relates to Arbitration.  Even with an Agreement that calls for arbitration as an option, there are some that allow litigation in a low-level court WITHOUT arbitration kicking in...

 

DO NOT pay for shadow counsel, especially to a person who is not licensed by the Bar.  However, a member of the Bar should not be accepting funds to play shadow counsel to begin with precisely because it can be a quick avenue to LOSING that card (which would mean an inability to practice, which then means an inability to effectively earn a living).  If you do not hire counsel to represent you, then you HAVE to ensure that you understand each and every document you prepare for submission to the Court and opposing counsel. 

I’m at the point where I just want to pay the *Admin does not allow masked profanity. Please read our Terms of Service.* and be done with it. It’s $1k and I’m trying to buy a house in the next couple of months. Don’t need this rearing it’s ugly head in that process. 

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On 2/2/2020 at 4:25 AM, Jasso20 said:

So.. my wife was served today by LVNV and a PI, I guess.. now what?

 

Original Notice and Petition for a Money Judgement. 
 

I thought they couldn’t sue me?

What was the outcome of the Suit @Jasso20 ?

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