Please Help Being Sued by Collection Agency (credit cards, debts, payment)

[tony23]

Originally Posted by fnord

Bankruptcy for $3200? That's a waste! Just ignore the debt collectors until you can repay it. That is not a huge amount of money.

I must have missed that. If that's the only debt, then I would agree with you, and will take back what I previously said about filing BK.

I seriously doubt they're really suing, for that amount. I think it's just a high-pressure lawyer using scare tactics to get this guy to pay.

[mommytotwo]

Originally Posted by tony23

I must have missed that. If that's the only debt, then I would agree with you, and will take back what I previously said about filing BK.

I seriously doubt they're really suing, for that amount. I think it's just a high-pressure lawyer using scare tactics to get this guy to pay.

didn't she (or he) say that there was 3200 for the one thing and other debt collectors will be after her/him for other debts?

funny I assumed it was a woman, I don't know why. Was there any indication?

[lildevil01]

who is the collection lawyer they sent after you ? I recently found out about a judgement I had back in NY from 2004 Foolishly I paid this Lawyer and had troubles getting anything settled so be carefull get everything in writing and let me know whom the firm is taking action against you

[overmyhead]

I filed for a motion to extend my time to answer and never received anything from the judge regarding that. A few days ago I received a letter from the attorney / court saying I'm in default and I have 10 days to respond.

I've filled out the answer and answered each claim based on advice I've received here but now I'm afraid because someone said if I do answer this way I will put myself in more trouble.

I'm pasting the answer below so you can advice me.

Thanks,

Arrow Financial Services LLC,

vs.

Defendant

Complaint
Breach of Contract; Account stated; Open-ended contract

Plaintiff Claims:

1. Plaintiff is authorized to do business in Arizona, the Defendant is resident of Maricopa County.

Answer: Defendant lacks sufficient knowledge with which to form any conclusion concerning the truth of this statement and therefore denies. Defendant demands strict proof of the truth of this allegation. Defendant agrees with the statement of residency in Maricopa County.
2. The defendant made purchases which were financed by Ultimate Electronics. Further, the Defendant has defaulted by failing to repay the Plaintiff, and that the Defendant has been unjustly enriched.

Answer: Denied
3. The plaintiff took an assignment of the Account in good faith, for value and in the regular course of business.

Answer: Defendant lacks sufficient knowledge with which to form any conclusion concerning the truth of this statement and therefore denies. Defendant demands strict proof of the truth of this allegation.
4. The defendant failed to make the monthly payments due.

Answer: Denied
5. The accounts owing is in the amount of $2,780.83

Answer: Denied
6. All payments have been credited as received.

Answer: Defendant lacks sufficient knowledge with which to form any conclusion concerning the truth of this statement and therefore denies. Defendant demands strict proof of the truth of this allegation.
7. The plaintiff declared the account to be in default and demands payment of the $2780.03

Answer: Defendant lacks sufficient knowledge with which to form any conclusion concerning the truth of this statement and therefore denies. Defendant demands strict proof of the truth of this allegation.
8. If any defendant was or became married during the time extensions of credit were made on the account, Plaintiff alleges the debt on the account to be both community and separate in nature. If the debt is pre-marital one, the non-debtor spouse is joined only as a necessary party pursuant to Arizona Law;

Answer: Defendant lacks sufficient knowledge with which to form any conclusion concerning the truth of this statement and therefore denies. Defendant demands strict proof of the truth of this allegation.

[Mircea]

That's excellent. Good job.

What you want to do now is engage in discovery. Arrow is a JDB (Junk Debt Buyer). That's very important.

What you want to do now is issue Defendant's First Request for Production.

You want the contract.

The contract will state how much they paid for your debt and when they bought it. If they cannot produce a valid contract, they have no right to sue.

The issue with JDBs, and there's case law on this in federal circuit court involving Asset Acceptance, is that they often buy debts from collection agencies on assignment, instead of purchasing the debt directly from the creditor.

In Asset's case, they purchased the debt from the Westmoreland Agency, and Westmoreland had no authority whatsoever to sell the debt, and therefore Asswipe Acceptance had no authority to collect the debt or sue.

I'll see what I can find to help you.

[overmyhead]

Thank you so much. So I should file this answer and then do what?

[Grainraiser]

I am willing to bet you a months salary these are just scare tactics from their attorneys. Keep us updated on your findings because trust me when I say your not the only one in this situation.

[overmyhead]

I don't think they are scare tactics because I've been to the court and they have a case number on me for this.

[Mircea]

Originally Posted by overmyhead

Thank you so much. So I should file this answer and then do what?

File your answer. One of two things will happen:

1) you'll receive notice of court to set a calendar

2) Arrow will contact you to settle

Don't fall for the settlement trick.

What will happen is they'll tell you it's settled when it really isn't. You'll end up with a judgment against you and they'll sell the unsettled portion of the judgment to another JDB who will come after you and then you're screwed because you have no protection since there's a judgment against you. Your first warning will probably be when you're at the check out line or at an ATM and there's nothing in your bank account.

Wait until you get a court date then submit your discovery. Arrow will probably drop it.

[overmyhead]

I filed the answer and now I'm scheduled for mediation? From what I've read I can ask them for the original contract with my signature on it and if they don't have it they have no case? I don't want to go to court and lose and have to pay way more money. All I really want is reasonable payments. They want 250/mo + 800 in fees and I can only pay maybe $100/mo... what do I do for mediation???