As I pause at this fork in the road, I am somewhat confused as to when it is appropriate to go to Small Claims and how to optimize that process. We dispute items with CRA, CA and OC. If we get deletions, then we are happy. But if we do not get a deletion and the CRA/CA/OC commits a violation of FCRA or FDCPA, now what? I have documented violations and there are now two paths that I can take: (1) Write a letter telling them they are in violation and demanding deletion in lieu of a lawsuit, OR (2) File the suit immediately. If I file in Small Claims there are more choices such as: (1) Settle for deletion only; (2) Settle for deletion plus xxx cash; (3) Proceed with the case. If the other party fails to show, then you win by default. If the case goes forward, you can either win or lose. The FCRA and FDCPA allow damages between $100-1000, which is tempting. However, the ultimate goal is to clean up our credit reports, which means getting the negatives deleted. The choices become even more complicated when you consider who you are suing. If you are suing a CA or OC, then you are trying to get one tradeline deleted and possibly receive some cash. In this case, is it possible to settle for both deletion and cash? If the judge rules in your favor and awards cash, will you automatically get a deletion? (I would hate to win cash in court but have to keep the negative tradeline!) Now consider the CRA who has committed several violations and controls many negative tradelines. Should you sue separately on each violation (and try to settle for deletion, cash, or both)? Or should you lump all violations into one suit and try to settle for deletion of all negatives in your file? This long post illustrates my indecision on the best way to proceed with the FCRA violations I currently have in hand. Perhaps it depends on how consumer friendly the local courts are, which I haven't tested. What I'm looking for is a simple formula that will optimize the process, such as: 1. SUE THEM as soon as you document the violation. 2. Attach a settlement letter with the Small Claims papers requesting deletion plus $500 cash (which is half the maximum you could get) to save them the trouble and expense of coming to court (especially if they are out-of-state). 3. Hope they accept or make a counteroffer. 4. If they don't respond then proceed to court (where you may win a default judgment or else the judge will decide the case). When the rest of you catch one of them in a violation, how do you decide on the best way to leverage that violation and what to ask for in your settlement letter? What formulas have worked, and which ones have not worked in your own experience? Do you handle this differently depending on whether it is a CRA, CA or OC that commits the violation?
Greenvan, If you have violations against a CRA, OC or CA, I suggest you go ahead and file your lawsuit, you have to remember that these firms probably get threats all the time. I know, because I threatned, but, I stopped being "passive" hoping the threat of a lawsuit would make these people pay attention and correct the mistakes on my report. Right now, I have a lawsuit against TU (Trans Union). And I am actually excited about it. So, with that said. FILE YOUR SUIT! bayrealty4
Bayrealty4, In your lawsuit against TU are you trying to get a cash settlement, deletion of one or more tradelines, or both? Also, does your lawsuit claim several violations or just a single violation of FCRA?
Greenvan, I am just looking for the deletions, that's what I wrote in my settlment letter when I had them served with the lawsuit. I am not after their money, although I could get it EASILY, I have them on 5 violations. bayrealty4
Greenvan, Even if you have them on ONE violation, SUE them. But, you indicated that you have them on a few, but, also remember, it only takes ONE! bayrealty4
Some state's small claims court will only allow you to sue for money, not for any type of injunctive relief such as deletion. You would have to check your state's civil code for this information, though. In the case of only being able to sue for monetary damages in SCC, then you have the option of going up to district court, or taking the chance that the CA/CRA will settle with you before court, to include deletion. But there have been cases where the consumer had to live with money alone because even though they won their case, the CRA's fought it and didn't delete on principle. Go figure, a CRA having principles.
In the situation of having 5 violations against the CRA, is there any advantage to filing 5 separate lawsuits vs. one lawsuit that includes all 5 violations? In the first instance, you will have 5 separate shots at getting what you want and will cause the CRA considerable expense in defending 5 independent lawsuits. However, in the second instance a single lawsuit with 5 violations may pack more punch in getting them to settle for deleting all of the negatives in your file...
Greenvan, I suggest you figure out which way you want to go as far as filing ONE lawsuit OR different lawsuits. It really depends if you have the time to do five lawsuits. I think either way you go, you will probably get the results you want. bayrealty4
Bayrealty4, Thanks for the input and advice. I wasn't suggesting that you should have filed 5 separate lawsuits. I was only trying to get a feel for whether most people lump multiple violations into one lawsuit or split them into separate ones, and the various reasons for doing it one way versus the other. Guess I'll experiment and find out what works best. Anyway, thanks and good luck with your case against TU. Waalien, This is good information on the small claims process regarding cash versus injunctive relief. I'll find out how my state handles this. And no, I can't imagine that a CRA could have any principles!
greenvan, as i have seen people sue and win for deletions, money, and/or both, I would suggest doing an in depth search on the words" lawsuit" and(+) "lizardking","christi", "uniondiva", "marie", "LKH" and "Psychdoc." As your disposition, state laws, which CRA you are dealing with, whether you file pro se, etc. will all be different, only you can make the ultimate decision. Also realize, suing for money or a judge/jury verdict will result in the CRAs taking a much harder stance against you. As waalien said, most states only allow monetary awards in small claims, so many people only put the monetary amount, so they can settle for deletions alone. Also realize, that the more experience you have in negotiations, suing, etc. will give you the abilility to negotiate both money and deletions w/o going to court, but this does take much courage and luck if it is your first time.
humblemarc, Thanks for the frank advice. It appears from your post that most people suing the CRA are actually hoping to settle for deletions only. I have also read that once you file a lawsuit the CRA flags your file, cuts off access to your credit reports, etc. With this in mind, perhaps it is better to remain low-key and exhaust all other avenues for deletions before finally hitting the CRA with a lawsuit to get rid of the really difficult tradelines. In the meantime I can simply "collect" FCRA violations over the next two years and save them for future use.
De nada. i agree with exhausting all other avenues, yet I wouldn't wait 2 years to get violations. 3-5 months should give you enough violations for a suit. Once you dispute a couple of times, send procedural request, ask for validation/verification from the OC/CA, etc. you should have enough info. to nail the CRAs to the wall. I would still research those threads, as they can show you how to get your reports clean in a few months, lawsuit or not.. .
In my experience, and I've sued 9 times in 2002. I never had to go to court once. I always sued for the state maximum in small claims $2500.00 even if there was only one violation. I just made the extra 1500.00 as punitive damages. Every company gets threats of being sued so often, they NEVER take it seriously. I even had once company, Credit Acceptance Corp, tell me, go ahead and sue us...so I did...and won (settled) trust me...they will settle out of court 99% of the time, for DELETIONS and $$$ (usually you can negotiate between 1000-1500 per suit) it's cheaper for them to pay you, and have you settle under non-disclosure, b/c they can keep on ripping off the other 99% who say they will sue, but never do! ...see where i am going with this?? good luck!
arobinson, Wow, you have a stellar record there! I am assuming that you always include a settlement offer with your notice of lawsuit. However, I can sometimes be a little dense. I THINK you are suggesting that I take the multiple FCRA violations and file individual lawsuits on each single violation, and then settle under non-disclosure for deletions plus cash. After all, 99% is pretty good odds, right? Let me know if I misunderstood where you were going with this. Thanks.
Actually, I wait until the court mails me the notice of suit, I usually get it about 2 weeks before the attorneys or r/a gets it, then I fax over a settlement demand, our small claims court does not like to have settlements attached to the lawsuits...they say it looks like abuse of the system...whatever What I would do, is file one suit per defendant, if you have more than 2 violations (find out what your max is for small claims) and max it out, if you go to district court, the next higher court, or ask for a higher amount, you risk them "actually trying to defend" the suit, and although you would probably prevail, it would end up costing you more than you bargined for, such as depositions, interrogatories, subpoenas of records, and they would fight harder.. file for the max, list everything, and demand settlement after filing of deletions or whatever or everything involved...and the max cash (you can expect them to offer about 1 grand , but YOU CAN ALWAYS NEGOTIATE......) you can also be creative..try for a new tradeline/credit account w/ and OC...you'll be suprised at the terms you can get...once I get my scanner working, I'll upload the contents of my Merrick Bank settlement agreement...I think I had a rookie atty there..I didn't even have to sign confidentiality... I went from $1000.00 cl / 19.9apr to 2500 CL w/9.9 fixed forever, no fees, and increases of at least 500 every 6 months with a written guarantee they cannot close the account, or change the terms unless other derogs appear on my CR...and the ones already there do not count...
