Sued by CITI - Right On Schedule

[ryan]

Just found out about another lawsuit filed against me today. CITI is plaintiff, and it says the case is classified as AR which in my district is "Arbitration - Contract."

As someone told me months ago on the forum, getting a debt turned over to a local law firm/collector is usually a sign you'll be sued.....and they were right- damn!

Anyone know anything about this type of action?

[Exployer1234]

I wish I could help. Is this your 3rd lawsuit so far? Are you able to file BK?

I know when I was hit with a lawsuit, judgement, and then wage garnishment I went ahead and filed BK. I refused to have my wages garnished and left with no money to pay my bills. In my state the creditors can get 25% of my pay. Being I am in school now and only work 30 hours a week it does not leave much money to live on. I thought when you reached your middle 30's you are supposed to be in a career that at least gives you a way to pay the bills. I guess not in today's time. I hope you can get some help with your lawsuits.

[Quagmire]

Ryan,

Sorry to hear about your newest troubles. How many months were you behind with Citi before your debt(s) was/were turned over to local law firm/collector?

Quagmire

[ryan]

Ryan,

Sorry to hear about your newest troubles. How many months were you behind with Citi before your debt(s) was/were turned over to local law firm/collector?

Quagmire

Approximately 9 months.

[treehugger1]

Ryan,

As I have mentioned, chiti will sue. They filed suit about 10 -12 months after last payment. They hire good attorneys here, so fighting them probably would have been a big waste of money. I have one judgment from them and another in the works. Interestingly, they have not asked their attorney to file for wage garnishment as of yet. It has been 7 months since judgment. Not sure what their plan is.

With my permanent 15% student loan garnishment, perhaps the remaining 10% for garnishment doesn't make it worth it. Especially when in this state the garnishment writ only lasts 90 days and then they have to pay to renew and serve again.

The arbitration option might only exist if you file an answer. That is the way it works in my district in Oregon. In addition, it costs me about $200 to file an answer, and if it goes to arbitration, I'm responsible for 1/2 of the arbitration costs (hundreds more.) What is the point?

You might call your local court clerk and ask them about the process. They can't give you legal advice, but they might answer questions about process.

[josephga]

I'm going on 8 months without paying so I'm expecting to be served any day now. I have no job so that might buy me sometime. I have decided when they do serve me I'm not going to bother showing up whats the point

[Quagmire]

Ryan,

Thank you. I appreciate it. Since I have several past due Citi accounts, based on your situation, that gives me an idea of how much time I might have before things get really ugly if I do not figure out a way to get out of my mess before then.

Josephga,

I feel sorry for your troubles. It sounds like we are in the same boat, but it sounds like you are a few more months ahead of me. Though I have been reading a lot about BK in these online forums since this past May, it sounds like a very bad idea if you do not show up in court if you get served. I feel the same way that you do and I have no job. However if I am not mistaken, I had read somewhere if you do not show up to court when you get served, at least two things can happen. 1. You may get an automatic judgment against you. 2. A warrant can be issued against you.

A few weeks ago, I had read an unrelated story in the news where a lady was pulled over for a routine traffic stop and the police ran a check on her and found out that there was a warrant against her (for a failure to appear in court for a past due credit card bill that turned into a lawsuit, for a debt I think that was for less than $500, because she did not think it was a big enough debt for her to show up to court for such a low amount, though she could not pay the debt at the time they arrested herYIKES!!!

Quagmire

[josephga]

over the last week iv called 3 lawyers and all 3 laughed when i asked if a warrant could be issued. they said the jails would be packed full if that was the case, all 3 told me the worst thing that could happen is a default of guilt would happen if you dont show

[catleg]

you do not have to show up in court in response to a lawsuit. it is usually a total waste of time. it might buy you time, depending on your state. A better way to buy time would be to call the court clerk and ask for an extension of the time to file an answer because you need to hire an attorney.

you only have to show up if you don't respond to a debtors exam (rules vary by state). in more and more states these things are becoming a standard part of collections workflow, whereas they used to be a little bit unusual.

[Quagmire]

Thanks Josephga, and Catleg. This is good information to know, and learn along the way. Best of all Josephga, I am glad to hear that you should be okay by skipping court if you end up in that situation. Good luck to you.

Quagmire

[ryan]

Well, I did some research, and apparently in my district they have what is called 'mandatory arbitration' but it is not binding.

You appear at first hearing as the summons notes and then the judge will schedule an arb hearing. How far out I don't know. At the arb hearing (if you appear) in about 2 hours a decision is rendered by arbitration panel.

Then you have 30 days to accept the ruling or pay $200 smackers to reject it. In which case you then get a regular trial.
...which I'll assume is scheduled sometime further out.

Treehugger you may be right...I'm trying to find out if there is a fee to file Answer in this type of case....In small claims you don't pay filing fee in my district, but this not a small claims case. Oh well, we shall see.

[daytona]

You can remove from the courts entirely as most all card agreements have BINDING Arbitration and this is a private forum...AAA or JAMS are the only ones left as NAF got put out of the business...you can do a search on the net regarding credit card arbitration and read about strategies for days...it typically slows down the creditor significantly and in many cases they (the creditor) has to pay all the costs.... Don't confuse "court ordered" arbitration, with actual arbitration....the courts have nothing to do with actual arbitration except that in most states the courts can render a judgement if you loose at arbitration...

[ryan]

Don't confuse "court ordered" arbitration, with actual arbitration....the courts have nothing to do with actual arbitration except that in most states the courts can render a judgement if you loose at arbitration...

OK, I admit, I'm confused.

I read the courts brochure on this and it calls it mandatory arbitration. As I said it does not bind you to the decision if you pay a fee and then elect a regular court trial...

and what you're talking about is different? Yes?

Are you also saying in this other 'private' type of arbitration, the suit I have now may be able to be moved to that venue instead?

[daytona]

Yes...court ordered arbitration is run by the courts....credit card arbitration is run by private forums...courts have nothing to do with it....

[catleg]

Private arbitration is rigged. Even the credit cards don't try that one anymore.