Author Topic: fight this lawsuit or just try to settle?  (Read 14611 times)

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jnb1111

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fight this lawsuit or just try to settle?
« on: April 15, 2012 02:01:53 PM »
Hi,

I'm new to this board, so I'll apologize in advance if I'm posting this in the wrong section.

I just received a certified notice from my local court here in Ohio that I am being sued for an old credit card debt from 2008.  The OC sold the debt, and it's currently trying to be collected by two separate agencies for two different amounts, one of whom is suing me.  I haven't signed for the certifed letter yet because I wasn't home when the mail carrier came, so this is all based on my looking up the court records search in my city. 

My credit has been pretty much shot the past few years, and I've just recently started trying to fix things, paying off a few collections, and establishing a good payment history for the past about 7 months, etc.  My credit score has gone from 406 to 464, still horrendous, but a definite improvement, and one thats motivating me to continue in trying to improve.
 
My question is should I fight this lawsuit, or just attempt a settlement to ensure I don't get a judgment, which will obviously retrash my credit. 
The amount I'm being sued for is $726, so it's obviously not a huge amount.  I did have a credit card with the original creditor Continental Finance, but the plaintiff as the lawsuit shows is Main Street Acquisition corp.  I guess they're the people who bought the credit card account back in 2008. 

I'm in Ohio, so this is still within SOL.  The funny part is, that I got a letter from Main Streets second collection agency/law firm and I requested validation, although verbally (I know, my mistake.  I didn't know better)  I've not received any validation yet, and now I have this lawsuit. 

The credit card only have a limit of $300, and so I don't believe this balance, but again, my main concern here is preventing a judgment, so I'm open to suggestions.
« Last Edit: April 15, 2012 02:50:10 PM by jnb1111 »

Admin0619

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Re: fight this lawsuit or just try to settle?
« Reply #1 on: April 15, 2012 02:24:12 PM »
Hi,

I'm new to this board, so I'll apologize in advance if I'm posting this in the wrong section.

I just received a certified notice from my local court here in Ohio that I am being sued for an old credit card debt from 2008.  The OC sold the debt, and it's currently trying to be collected by two separate agencies for two different amounts, one of whom is suing me.  I haven't signed for the certifed letter yet because I wasn't home when the mail carrier came, so this is all based on my looking up the court records search in my city. 
My credit has been pretty much shot the past few years, and I've just recently started trying to fix things, paying off a few collections, and establishing a good payment history for the past about 7 months, etc.  My credit score has gone from 406 to 464, still horrendous, but a definite improvement, and one thats motivating me to continue in trying to improve. 
My question is should I fight this lawsuit, or just attempt a settlement to ensure I don't get a judgment, which will obviously retrash my credit. 
The amount I'm being sued for is $726, so it's obviously not a huge amount.  I did have a credit card with the original creditor Continental Finance, but the plaintiff as the lawsuit shows is Main Street Acquisition corp.  I guess they're the people who bought the credit card account back in 2008. 
I'm in Ohio, so this is still within SOL.  The funny part is, that I got a letter from Main Streets second collection agency/law firm and I requested validation, although verbally (I know, my mistake.  I didn't know better)  I've not received any validation yet, and now I have this lawsuit. 
The credit card only have a limit of $300, and so I don't believe this balance, but again, my main concern here is preventing a judgment, so I'm open to suggestions.

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jnb1111

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Re: fight this lawsuit or just try to settle?
« Reply #2 on: April 15, 2012 03:23:22 PM »
ok...

cprems

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Re: fight this lawsuit or just try to settle?
« Reply #3 on: April 15, 2012 04:58:54 PM »
Find a credit card agreement from the OC and demand arbitration.

Did they provide an agreement?

Here is an agreement - It has JAMS in it

http://www.continentalfinance.net/chas/J.pdf

Now, if this were my issue, I'd file a MTC arbitration and pay $50. It uses Delaware law (3 year sol)
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daryl1689

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Re: fight this lawsuit or just try to settle?
« Reply #4 on: April 15, 2012 05:05:22 PM »
With all due respect, any credit score below 650, and even 700 is considered subprime these days.  How many negative accounts do you have?  Do you anticipate more creditors filing suits against you?  Is bankruptcy an option?

cprems

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Re: fight this lawsuit or just try to settle?
« Reply #5 on: April 15, 2012 05:09:15 PM »
Arbitration forum - http://www.debtorboards.com/index.php?board=121.0

I also posted the credit card agreement here - http://www.debtorboards.com/index.php?topic=10980.120

It has a survivability clause and you pay $50
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jnb1111

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Re: fight this lawsuit or just try to settle?
« Reply #6 on: April 15, 2012 05:58:16 PM »
With all due respect, any credit score below 650, and even 700 is considered subprime these days.  How many negative accounts do you have?  Do you anticipate more creditors filing suits against you?  Is bankruptcy an option?

I know I have horrible credit, I have a lot of negative accounts, but everything is current now, and has been for the past 6 months, with the exception of private student loans that I cosigned on with my now ex wife.  They've ballooned from $60,000 to over $200,000 and they're not dischargeable in bankruptcy, so it's not really an option, but that's the main reason my credit is shot.  I have decent credit otherwise, but things need to be manually underwritten.

For example, I have late pays on my Capital One credit card, but it's current now, and has been for the last 7 months.  I've got good history with Honda Financial, and despite my low score, they just approved me in January for a new car at 4.9% with $0 down.  I was putting $300-400 a month consistently into repairing my old car, so I made the decision to get a new car, expecting a used car at crazy interest rate and a large down payment.  The dealership made a call, and got me the approval, so like I said, I have a bad score, but I'm trying to fix it.  As for other potential lawsuits, none that I foresee, other than the student loans.  With that, I"m basically just waiting to get sued.  I don't make anywhere near that amount, I don't own my house, but they also will NOT negotiate a settlement of any kind, unless I want to write them a check for $100,000 which I can't do.

The only other collection accounts I have are either paid, or in the process of being paid.  I'll look into this arbitration.  One question that immediately comes to mind though, is if Continental Finance sold the debt to Main Street Acquisitions, does the Continental Finance credit card agreement still apply?
« Last Edit: April 15, 2012 06:03:40 PM by jnb1111 »

cprems

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Re: fight this lawsuit or just try to settle?
« Reply #7 on: April 15, 2012 06:08:35 PM »
Read the agreement. See what YOU think applies.

Start reading the Ohio RCP. You NEED to answer the suit.

If this were my issue, I'd immediately file for arbitration with JAMS and pay my fees. I would demand the lawsuit dropped and for them to arbitrate the claim.

Start reading and understand what is needed to secure an arbitration claim.
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Flyingifr

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Re: fight this lawsuit or just try to settle?
« Reply #8 on: April 18, 2012 09:56:30 AM »
Fighting the suit willl not help your credit but it may prevent a Judgment which has a much longer SOL than a non-Judgment debt and with a Judgment they can attach bank accounts and paychecks, their two favorite targets. With a credit score in the mid-400's you really don't have much further down to go. If it comes to it, a BK may even help.
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KFMAN

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Re: fight this lawsuit or just try to settle?
« Reply #9 on: April 18, 2012 11:46:44 PM »
Always fight and take them to Jams arb if you have to.

Midas10k

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Re: fight this lawsuit or just try to settle?
« Reply #10 on: April 19, 2012 12:16:12 AM »
Dude, a good rating is one of the most overrated and overglorified concepts ever invented.  My credit rating stinks and it hasn't prevented me from doing anything.  Maybe my car insurance costs a little more than otherwise.  Anyone who loses sleep over their credit rating needs to take valium.

First things first:  Main Street Acquisition is the entity pursuing a debt collection against me on an alleged HSBC credit card and the amount is many multiples higher than what your's is.  The CA has not filed a complaint with the court yet and I hope he does, because just today I received a notice from a different JDB that they have the authority to settle this alleged account.  Neither of them likely has any authority that is provable.

Follow the advice already offered and use the credit card agreement that would have been effect when you defaulted that has the arbitration clause with JAMS.  Read through the ABCD's of arbitration threads several times:  http://www.debtorboards.com/index.php?board=121.0

It started to make sense to me after about 3 iterations.  Answer the complaint filed against you (there are many examples on this board on what to say) and then immediately file for arbitration.  Ask questions (after you search the board for the answer) and have the confidence/faith to follow the advice  given by the people on this board who have travelled this route successfully many times.

The look up the rules of evidence for Ohio and get an understanding of exactly what is required in order for Main Street to prove that it is the valid party in interest, i.e. the right to collect that debt.  Based on what I've been through already, I would bet that 99% of the time any JDB does not have that ability if pressed in court.

jnb1111

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Re: fight this lawsuit or just try to settle?
« Reply #11 on: April 19, 2012 12:26:31 AM »
Dude, a good rating is one of the most overrated and overglorified concepts ever invented.  My credit rating stinks and it hasn't prevented me from doing anything.  Maybe my car insurance costs a little more than otherwise.  Anyone who loses sleep over their credit rating needs to take valium.

First things first:  Main Street Acquisition is the entity pursuing a debt collection against me on an alleged HSBC credit card and the amount is many multiples higher than what your's is.  The CA has not filed a complaint with the court yet and I hope he does, because just today I received a notice from a different JDB that they have the authority to settle this alleged account.  Neither of them likely has any authority that is provable.

Follow the advice already offered and use the credit card agreement that would have been effect when you defaulted that has the arbitration clause with JAMS.  Read through the ABCD's of arbitration threads several times:  http://www.debtorboards.com/index.php?board=121.0

It started to make sense to me after about 3 iterations.  Answer the complaint filed against you (there are many examples on this board on what to say) and then immediately file for arbitration.  Ask questions (after you search the board for the answer) and have the confidence/faith to follow the advice  given by the people on this board who have travelled this route successfully many times.

The look up the rules of evidence for Ohio and get an understanding of exactly what is required in order for Main Street to prove that it is the valid party in interest, i.e. the right to collect that debt.  Based on what I've been through already, I would bet that 99% of the time any JDB does not have that ability if pressed in court.

Interestingly enough, I also have a letter from another CA stating they can settle this debt, as well.  It's the same debt, but their amount is significantly higher. 

Midas10k

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Re: fight this lawsuit or just try to settle?
« Reply #12 on: April 19, 2012 12:46:36 AM »
That should tell you all you need to know.  Now my advice to you would be to solicit information from the pros on this board about how to use the fact that two different JDB's are trying to collect on the same alleged account. 

I have some ideas but let the pros tell you what they would do.

cprems

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Re: fight this lawsuit or just try to settle?
« Reply #13 on: April 19, 2012 12:57:28 AM »
It seems there is a conflict.

One might present this to a Judge in the form of an answer that may include "party of interest."

OR, I would invite BOTH parties to the arbitration. Then let them both figure it out. Someone is lying to you in regards to owning and collecting the alleged debt.
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Midas10k

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Re: fight this lawsuit or just try to settle?
« Reply #14 on: April 19, 2012 02:09:35 AM »
I'm wondering if the fact that two different JDB's are claiming the right to settle/collect on the same alleged might might have FDCPA implications.  It seems there's fraud involved too.

I have to believe that this can be used as a big hammer to swing at the JDB that filed a court claim.