Please Help Being Sued by Collection Agency (pay, financial, interest)

[Fighter 1]

Originally Posted by 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.

LOOK at #2 Defendant JOHN A. DOE ( your Corporation entered in to contract ) not you John A. Doe( the Live being ) There is a legal differance!

[Fighter 1]

Originally Posted by overmyhead

Well I filed the answer like everyone advised me to denying most things. Now I've got a mediation hearing and the attorney has sent me 3 pages of questions requesting for documents. Again I know I owe this debt and it doesn't look like they are going to back down. My only issue is I can't afford to pay $300/mo for 12 months. I can afford $150/mo barely.... What should I do? I don't want to keep dragging this on and racking up the attorney fees they are going to make me pay.

I need to ask Does the letter demanding answers have your name spelled in capitol letters??? If yes then your corporation is the responding party ,,, If it is in uper and lower case spelling then you must answer (Jonh A Doe) when you face the lawyer at the meeting show him a paper 8 1/2 x 24" with your name printed in CAPITOL letters and tell the to address all their questions to the corporation represented on the paper . this has worked in court hearings , when the judge is faced with this , the court has nothing it can but go into recess , and then dismiss the matter . Leaglly they have no action against you the live being .Want more info DM me>

[gjs4786]

It also depends a lot on the state you reside in, as each state has different laws. The first thing you need to do, is write a certified letter to this agency in a professional format, and make sure you photo copy and sign it. In the letter ask that you see proof of the charges being brought against you. When I did this, they simply sent back to me that they didn't need proof, and that was a lie. So, I sent out a second request for information and had it certified. No response. So when you show this to a judge it's very easy to ask to have it all thrown out.

Remember, these collection agencies have to pay lawyers to come down from usually a big city. It's expensive. If you show them you're gonna play hard ball, it is often that they don't mess with you, especially over 3200 bucks.

They can't touch your car if it's the only one you have, they can't touch the house because you rent it, and if you show a judge that the money you are making is barely allowing you to survive, there's a good chance they can't touch your income.

[overmyhead]

No they use my name as it is spelled. THey don't use all caps So I should file a discovery back to them asking the same questions? If I answer their discovery then won't that show I owe the debt since it asks when I last paid the collection agency etc.

[Fighter 1]

Originally Posted by overmyhead

No they use my name as it is spelled. THey don't use all caps So I should file a discovery back to them asking the same questions? If I answer their discovery then won't that show I owe the debt since it asks when I last paid the collection agency etc.

In that case you ask for a copy of the document they purchased that allows them to demand payment from you . asked in that maner is not an acceptance by you that you owe any money it is you asking for proof of debt. When you get to documemnt most likely you will see that the credit card co. did in fact put the contract in cap letters and thats when you state that the capital spelling is not you and you do not have to accept responsiablity for it there fore they have no action against you. Don't ask when it was last paid!

[induhvidual]

Originally Posted by sean98125

Can you move out of your house and into an apartment to cut expenses? That will reduce the amount you have to pay for a roof over your head and for utilities.

Take a long look at how you are spending your money. Get the cheapest phone plan that you can. If you have broadband internet, it's time to say goodbye to that for a while. Cable TV? You can't afford it.

Check New Car Prices, Used Car Prices, Blue Book Value, Car Reviews - Official Kelley Blue Book Site to see what your car would be worth in a private sale. Call your finance company and tell them that you need to sell the car for whatever you can get for it and you'll pay back the difference. Or they can come pick it up. Then go get a $1000 beater to get you around until you can responsibly manage your finances. And get minimum coverage on the beater - you don't need collision, for example. Just liability.

Start talking to the collection agencies and start to offer them a settlement offer. You don't have a lot of money or any assets, so tell them that you will give them 30 cents on the dollar for the debt. They'll stomp and rant, but your only other option right now is bankruptcy, and that means they won't get a dime. They made a mistake extending credit to you. If they agree to the deal, then you need to get that in WRITING before you send them a dime. Do not give them access to your checking account - just send them a check when you have it in WRITING that your debt is clear once they cash the check. Keep that letter someplace safe forever. Your settlement offers should be based on the amount of the original debt, not on the amount of debt plus fees plus interest.

Get a part time job to earn some extra money to get on top of the debt. Flip burgers, say hi to people at Walmart, mow lawns, deliver newspapers... whatever it takes.

Stay the heck away from restaurants. No vacations. No take out. Take your lunches to work. Eat dinner at home. Start visiting websites like The Simple Dollar or Wise Bread | Personal Finance and Frugal Living Forums to learn how to live within your means.

If only everyone followed this advice, we (Americans) wouldn't be in this mess right now

[Mircea]

Originally Posted by overmyhead

No they use my name as it is spelled. THey don't use all caps

It wouldn't make any difference if they had.

Originally Posted by overmyhead

So I should file a discovery back to them asking the same questions?

No, I gave you some discovery questions to use. Just copy the caption and format and put your questions in there.

Originally Posted by overmyhead

If I answer their discovery then won't that show I owe the debt since it asks when I last paid the collection agency etc.

No, and I can assist you with answering the questions if you want. You'll have to post them here.

Here's where you stand:

1) You can take their offer of "settlement" but you'll have to very carefully study and scrutinize their agreement. You will have a judgment on your credit report for the next 10 years or so that will harm your future credit. The settlement must be in full, and if not, it must state that the unpaid balance is forgiven, or they will simply sell that to another junk debt buyer who will attempt to collect it from you and you'll be back in court with a second judgment on your credit report. You also need to take care that they don't garnishee your wages while you're making your voluntary payments, which often happens.

2) You can take their settlement offer and make modifications to the language of the agreement, and I'll help you with that if you want. Basically, you're shooting for a conditional agreement that allows you to pay off the debt and once done, they file a voluntary dismissal with the court to dismiss the case so that you do not have a judgment on your credit report. You can even word the agreement so that if they try to ********* and don't dismiss the case, they pay you statutory damages of $10,000.

3) You can file discovery and force them to prove they have the authority to collect the debt. The last thing you want to do is pay them, then have another collection agency come after you for the same debt, and yes, it happens often. What are you going to say? I already paid? Wrong. You paid, but you paid the wrong party. You lose. Sorry. That's life. You'll have to pay again. You can hire an attorney and try to sue them to get your money back, but what a hassle and how long will that take? If they bought the debt, from whom did they buy it, was the sale legal, and how much did they pay for your debt? Pennies on the dollar. You might live in one of those states where all you'd owe is what they paid for the debt.

You shouldn't be worried about attorney fees. They're limited in what they can collect, so don't think you'll be presented with a bill for $10,000 in legal fees because it won't happen.

[zman0]

Originally Posted by overmyhead

Well I filed the answer like everyone advised me to denying most things. Now I've got a mediation hearing and the attorney has sent me 3 pages of questions requesting for documents. Again I know I owe this debt and it doesn't look like they are going to back down. My only issue is I can't afford to pay $300/mo for 12 months. I can afford $150/mo barely.... What should I do? I don't want to keep dragging this on and racking up the attorney fees they are going to make me pay.

Yikes, you're getting lots of legal-sounding advice without any legal representation. I would highly suggest going to the local state bar and seeing if you can get some free help. You don't necessarily need representation, just advice on how to proceed.

You're in mediation, not trial. I'm not really sure how you got there without an agreement, unless it is mandatory. And unless you've had a discovery conference, you're not in discovery. Which means you probably can't file interrogatories.

You need to answer the questions to the best of your ability, and send questions of your own to the other side. You should check with a lawyer or the court clerk to see how to file these during mediation.

Examples of questions are:
provide the original loan agreement
provide proof of transfer of the debt from the original company to the collection agency
provide an itemized list of all debts owed
provide a list of all payments ever received on the account
provide proof of license to practice in the state (I would assume there your state regulates collections agencies, check on that)
proof of any and all prior agreements between the parties, etc.

Then you're going to want to approach the other side and maybe make an offer of settlement. You said you want to pay the debt, and can afford $150/month. Maybe start with $150/month for 12 months. That's $1800, and they might take it. You need to figure out how much you can afford, and how much you want to pay. You have the "big stick" here, you can always file bankruptcy, and it will wipe out their claim. Don't let them push you around.

[sandcranelady]

IF you have no real assets,Like loads of money in bank, they can not do anything but get judgement on the records for you, and maybe, maybe not , try to garnish your paycheck for 20.00 a month. Dont lose any sleep over this mess, you are not alone, more people these days are just letting the cc go, so everyone will have bad credit. You could file for bankruptcy protection for 1000 , but who has that kinda money extra. disconnect your phone and stop worrying.

[floridasandy]

not the best advice, you can't ignore back taxes.