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Sent a Dispute to Creditor Attorney they File Suit


Cajun Credit
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Back in July I received debt verification form from a creditor’s attorney. I responded by disputing the amount and sending a settlement offer and to respond by mail.

 

I noticed today that they filed suit, yesterday.

 

They did not respond to the dispute or settlement offer.

 

I haven’t been served since it was just filed.

 

Did they violate any rules?

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13 hours ago, Cajun Credit said:

Back in July I received debt verification form from a creditor’s attorney. I responded by disputing the amount and sending a settlement offer and to respond by mail.

 

I noticed today that they filed suit, yesterday.

 

They did not respond to the dispute or settlement offer.

 

I haven’t been served since it was just filed.

 

Did they violate any rules?

I don't see anything wrong. A demand letter from an atty for the debt normally precedes a lawsuit. Might affect reporting of the debt to CRAs though since you disputed the debt and they didn't respond to the dispute. But yeah, they can sue.

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It's highly unlikely any JDB will arbitrate for 2100. An OC might, but also unlikely since it will end up costing them five times what they are chasing. Do NOT litigate this, that waives arbitration. File an arb case and attach it to your answer, which should be a general denial with one special defense; arbitration. The motion template is in the pinned topic.

Edited by legaleagle2012
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What do you mean by 'debt verification form?' Without knowing what exactly you were replying to, not much cogent guidance may be given...

 

To me, when I see that phrase, it is suggestive of a generic reply to a generic dispute. 

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Excuse the dots. I don’t want to put too much info out there. Just in case a JDB monitors this forum.

 

OC is The Bank of M*****(Show Me State) for a subprime card, now owned by a JDB, C** Prime.

 

Debt went bad 2 years ago so no SOL luck.

 

Louisiana is the state, 3 year SOL.

 

I was contemplating calling their attorney to raise hell about the suit (their response letter did not mention they were filing, they just gave me a deadline to pay). I also want to seek a lower payoff than was countered and affirm my willingness to pursue arbitration to seek a quick end to this.

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Lose that argument, there is nothing in any state statute that says they have to warn you that they are going to sue. Threatening arbitration or anything else  is not a good negotiation tactic. Just like they did, you can file for arb any time you want. Now that you waited until they sued you, you'll need to file a motion to compel with the court. See the pinned topic. No need to warn them, either.

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I may just respond to counter the counter offer, and mention their suit and say that I am prepared to defend the case and file my answer with the court after being properly served (not mentioning arbitration in the courter offer), but when I file the answer, I will include the motion to compel arbitration in the defenses.

 

Would it be better to call or write to the attorneys?

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5 minutes ago, Cajun Credit said:

I may just respond to counter the counter offer, and mention their suit and say that I am prepared to defend the case and file my answer with the court after being properly served (not mentioning arbitration in the courter offer), but when I file the answer, I will include the motion to compel arbitration in the defenses.

 

Would it be better to call or write to the attorneys?

Before ignoring what you received, make sure you are not in a jurisdiction where pocket service is a thing...

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  • 2 weeks later...

To update, I was finally served. I did try to up my initial offer last week, but they have yet to reply.

 

So it is answer time, they included no physical evidence about the debt in the suit such as an old statement or agreement, just an affidavit.

 

In the past, I know some suits would include an old statement in the filing.

 

I didn’t know that it could be that easy to sue and get a judgement just over an affidavit if no one answers the case.  So to answering I will do before the 14 days.

Edited by Cajun Credit
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2 hours ago, Cajun Credit said:

To update, I was finally served. I did try to up my initial offer last week, but they have yet to reply.

 

So it is answer time, they included no physical evidence about the debt in the suit such as an old statement or agreement, just an affidavit.

 

In the past, I know some suits would include an old statement in the filing.

 

I didn’t know that it could be that easy to sue and get a judgement just over an affidavit if no one answers the case.  So to answering I will do before the 14 days.

 

MOST states do not require they attach all their evidence to the complaint when filed.  If you want evidence you will have to go through discovery to get it.  Keep in mind that if you intend to use arbitration do not send discovery demands first.  In many states participating in the litigation process automatically waives your right to arbitration.

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  • 2 weeks later...

I might have to make a tough decision. I am on the fence about taking the settlement. I am worried about going down the risky road of this thing mushrooming into a much larger debt.

 

They just tacked on the court cost of filing the suit after their offer. They even upped a settlement option based on that.

 

But I can still settle for the lower amount by next week. It is still more than what I wanted to pay.

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  • 2 weeks later...

If you have the money to settle and really want to do it, go ahead.

But as I don't, if I were in your situation (fortunately all the JDBs trying to call me are WAY outta statute, but it seems they get sold to everyone by the time a debt is old enough to vote) I'd send them a letter stating you wished to resolve this through arb, then file your MTC and add that letter as evidence you have informed them.

I don't know about Louisiana, but Arkansas requires at least a copy of the last OC's credit card agreement as well as any affidavit.  (So I'd file a motion to dismiss as well as a motion to compel arb). 

Wishing you the best of luck.

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Help me fill a huge pothole in my grasp of the variables here:

 

What assures that the debtor has the right to compel arbitration of the dispute in this case?  Is this in the debt terms?  Afforded by statute?  As I said, I'm clueless.

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