Today I went to small claims court. I posted a few weeks ago about my progress with several small claims suits against collection agencies and original creditors. I was suing each company for failing to report to the cra's that my debts were disputed. I had sent them all certified dispute letters for the past 5 months. I got no proof back from them at any time and my latest credit reports still show none of them reported as disputed. I sued for $1,000/each for violations: Section 807(8) of the Fair Debt Collection Practices Act: § 807. False or misleading representations [15 USC 1962e] (8) Communicating or threatening to communicate to any person credit information which is known or which should be known to be false, including the failure to communicate that a disputed debt is disputed. and Section 623(a)(3) of the Fair Credit Reporting Act: § 623. Responsibilities of furnishers of information to consumer reporting agencies [15 U.S.C. § 1681s-2] Duty to provide notice of dispute. If the completeness or accuracy of any information furnished by any person to any consumer reporting agency is disputed to such person by a consumer, the person may not furnish the information to any consumer reporting agency without notice that such information is disputed by the consumer. ------------- The day before court (yesterday), 5 of the 7 finally settled for complete deletion of the accounts. Most were $1,000-$2,000 charge-offs. I can't say who they were, due to the agreements I signed, but one of them even agreed to send me a check for $1,000. Now, the other two that refused to settle and showed up in court were Discover (a $900 charge-off) and another collection agency for a $200 doctor bill from 3 years ago. Discover tried to settle with me outside the court room, saying they would remove the charge off status, but leave the several 150+ days late notations. I declined. The other asked to settle by having me pay the entire $200 in exchange for removal. I declined as well. I offered to settle with both by dismissing the cases in exchange for removal of the debts from the cra's. I had overwhelming evidence against both. They both declined my offer. Suprisingly, the judge was not familiar with the FDCPA or the FCRA. I provided copies of both. I provided copies of the letters I sent to both companies disputing the debts, with return receipts signed. I also provided recent copies of my credit reports showing no dispute status was ever reported. The judge kept going back to asking me if the debt was truly mine. I replied that it may very well be mine, but I have been provided no proof by the companies, and regardless, they are still required to report the debts as disputed. Of course, both companies just happened to bring my original signed contracts to court. I asked why they hadn't mailed these to me months ago when I originally disputed the debts. The ca said that they had. I replied that I received nothing and asked if they had proof that I ever received their alleged proof by mail. They had no proof that I received their letter, but amazingly, the judge said certified mail is not required! He said as long as they sent me proof by regular mail, that it was good enough for him! I said how could that be? And he said that is just the way it is! What a joke! He asked them if their alleged letter to me came back as returned undeliverable. Of course they said no, and I told the judge, "What, do you think they're going to say yes it came back as undeliverable." Of course not. I was very baffled at this. Discover said that they did not need to send me proof because they do not fall under the laws of the fdcpa!! I laughed at that and the judge didn't seem to believe them. I said do you fall under the fcra?, they said yes. Obviously, they violated the fcra then. The judge was very confused as to what to do on each case. He seemed to think that if the debt truly was mine, I had no right to dispute it. I told him I had the right to dispute any debt at any time for any reason. And that even if the debt was mine, the companies have no right to break federal law by not reporting the debts as disputed. So the final decision? - the judge said he needs 3 days to go over all of the information more thoroughly. I have no idea what will happen, but if I lose, I believe that the judge has not abided by the law. Did I mention he looks borderline 80 years old? Oh, one more thing - the lady from Discover said if she won, she wanted me to have to pay for her airfare. The judge laughed at her and said no way. Can you imagine that? Discover flew someone out here over a $900 debt when all I was asking for was complete deletion of the account in exchange for me dismissing the case! Any comments?
Wow I hope things go your way was an interesting read... Could you tell me what state or city this is in...
I think you made a critical mistake by admitting the debts were yours. I would have said I don't know if they are mine or not, I have no proof it is mine.
I never admitted that the debts were mine, but when the judge presented me with copies of my original signed contract, I said it looks like they are mine, but I said regardless if they are or aren't, I am not in court to porve that they aren't mine. What was I supposed to do LKH, lie and say thats not my signature, then try to make up a fake signature for matching purposes? It was in los angeles, CA.
Well, you could have said yes it's my signature, and yes I did have an acct. with them, but I don't believe I owe anything as they failed to provide the proof. I know it's a tough position to be put it and hopefully the judge will realize what a bunch of jerks they are and that they did violate the law. I wish you luck.
Yup...I can believe Discover flew someone out. Its a joke in law offices...someone will file bankruptcy and have zero assets and be $80,000 in debt and make $18,000 a year and Discover will still show up. Can't believe the other guy did though unless he was local. As far as the judge asking if it was yours, I think you did the right thing by not lying, but I don't think I would have said they very well might be mine. I probably would have said that I have no idea, that I do not recall having an account with them...and then like LKH(I think?) said, saying if it was my account, I don't believe I owe them anything and then I would have asked the judge to have them provide all statements during the time the account was open as well (showing case law). Overall, though...I think you did terrific! To be honest, I don't know if I would be too nervous to think of what to say in that situation...lol. You did good and 5 out of 7 settling isn't bad either! L
The status of the debt is not relevant. Keep focus on what is being alleged. "the failure to communicate that a disputed debt is disputed." Your debt, not your debt, the man in the moons debt..It doesn't matter. You did dispute, (did they admit that?) provide proof they did not change the status to disputed and your point is proven. Typical lawyer BS when in the wrong change the point and attack the accuser. Good Luck, JohnM
Kellyscott, 5 out of 7 ain't bad! What if they had all shown up? As to the question about CRRR mail? The theory judges and lawyers work from is, if it was in the best interest of the party to send you the document then, the premise is they sent it. In this case, sending it would comply with the law and if they have it in their possession now, it's reasonable to assume they had then and would have sent it.
Re: details of my lawsuit today - l Kelly, you've done great no matter what -- 5 of 7 is terrific. I might have settled with that $200 one for complete deletion -- that's not too big a debt, and the complete deletion would certainly be worth that trouble. That would have left you with Discover. I'm with you re Discover: I would NOT have settled for what Discover offered -- leaving those 150-day lates are practically as bad as the chargeoff. I wonder if it's too late for you to do an 11th-hour settlement with the $200 folks. If it was me, I'd consider calling their attorney and settling that. (I'm no lawyer, though. Perhaps a legal expert could tell us why that's not advisable or possible at this point.) Then go ahead and battle with Discover. Thoughts? Doc P.S. Quick question... Did you just file ONE lawsuit with 7 defendants? Or did you file a separate lawsuit for each one, and the judge simply heard these two defendants together?
Re: details of my lawsuit today - l I think you did great!! I probably would have been too nervous to think of a good answer, hehe. I also think that as more and more people file suit, more and more companies will show up in court - just to let consumers know it is not going to be an easy win. They have to do something - consumer lawsuits are threatening their way of doing business (breaking the law to collect), if not their very existence.
Re: details of my lawsuit today - l thanks for posting. my court date is next week and this is very helpful.
Very well done! 5 of 7 Isn't bad at all. And you seem to think on your feet . I would not have said that they very well could be mine. Just who was on trial? Not you. The issue was violation of your rights. I will file 3 suits in the next 3 weeks and I wonder if I should wait. After what Breeze said about them showing up in court more often. I live in Alaska and they may jump at a chance to go to Alaska in the summer! But in December? Nobody in their right mind would come here. Overall I think you did great!!
Re: details of my lawsuit today - l You did awesome! I would consider appealing your case if you lose. I think you could get an appeal based on the fact that they had not provided proof that you ever received the signed contracts.
Re: details of my lawsuit today - l I don't think you could appeal based on that. Lawyers rarely send items certified mail return receipt. The court generally accepts a person's word for it and that is up to the court and not a matter of law. However...if the ruling goes against you...I do think you have a basis for appeal based on the fact that the judge will have erred as a matter of law because they did not mark the items in dispute, etc. L
Re: details of my lawsuit today - l Thanks you guys! I think I did the best I could. I kept going back to the fact that if these debts are mine means nothing. They still had to be reported as disputed. I didn't settle for the $200 because I thought I had it in the bag and would win $1,000 from them. The ca said that since they sent me proof (supposedly) that it was no longer a valid dispute and shouldn't be reported as disputed because it had been resolved. I filed 7 separate cases, and these two just happened to be one after the other. Both defendants were so nervous! They were shaking and stuttering. I hope the judge looks at the facts. JohnM is right (Typical lawyer BS, when in the wrong change the point and attack the accuser.) I think they were there to try to confuse the judge. Both not only had my original signed contract, they also had copies of payments I made 3 years ago by check, statements, etc. I can't believe both fought so hard, all I was asking for in settlement was removal - no money! Kelly
Re: details of my lawsuit today - l Wow - you did great.. I agree with most everyone's advise here. This gives me encouragement to go after the CA's as well. I will be filing my lawsuits ASAP as well. I am in Northern CA and understand the california process in small claims.. I will be suing 3-4 CA's actually..
Re: details of my lawsuit today - l I think that you have done very well so far and should be pround of yourself for having the gumption to go to court! Its amazing how many creditors just choose to ignore section 623!
Re: details of my lawsuit today - l Using this board, my FICO has already gone from 473 to 642 since January. After these settlements I'll definitely be over 700! Kelly
Re: details of my lawsuit today - l kelly, Whatever the judge's decision, you handled yourself extremely well. This is great success by any measure.
