Help received a summons!

[itsmedh]

Hi

I am using CNI (second mistake, 1st getting into debt)to negotiate debt for me on my credit cards. I have found out that they are there to collect my monthly fee every month and to negotiate my debt when I complain to them. So now I have received a summons to the local magistrate courts by an attorney in Kentucky. The debt is for a JC Penney card and I have 20 days from today to respond. I have heard in the past that if you ask for a jury trial you stand a better chance of it being drawn out longer and giving you more time to negotiate but not sure where to go from here.

[hannah]

Quote:

Originally Posted by itsmedh Hi I am using CNI (second mistake, 1st getting into debt)to negotiate debt for me on my credit cards. I have found out that they are there to collect my monthly fee every month and to negotiate my debt when I complain to them. So now I have received a summons to the local magistrate courts by an attorney in Kentucky. The debt is for a JC Penney card and I have 20 days from today to respond. I have heard in the past that if you ask for a jury trial you stand a better chance of it being drawn out longer and giving you more time to negotiate but not sure where to go from here. Donna Hollida

Ok a JC Penney card is a store or "lender" card which means it has a 4 year statute of limitations under the KY UCC. When did you last pay on this card? When did you last pay on the card that brought the account current? Who is bringing the suit, ie, who is the stated plaintiff and what does the complaint say they are suing you for? Any evidence attached?

[itsmedh]

Thanks Hannah. I am in Berkeley County, WV. The last payment was in March, 2008. The plaintiff is GE Money Bank. The complaint says that the defendant is indebted to the plaintiff and an obligation is past due of 2266.06, plus interest accruant according to WV 56-6-31 from date of judment and paid and request the following relief freom the court: judgment against the defendant for the sums set forth abve and court costs. Attached is exhibit A which is JC Penney statement showing charge of account Principal 1855.78 and finance charge of 410.38. It also contains the information that gives us the 20 days to file an answer.

[hannah]

Quote:

Originally Posted by itsmedh Thanks Hannah. I am in Berkeley County, WV. The last payment was in March, 2008. The plaintiff is GE Money Bank. The complaint says that the defendant is indebted to the plaintiff and an obligation is past due of 2266.06, plus interest accruant according to WV 56-6-31 from date of judment and paid and request the following relief freom the court: judgment against the defendant for the sums set forth abve and court costs. Attached is exhibit A which is JC Penney statement showing charge of account Principal 1855.78 and finance charge of 410.38. It also contains the information that gives us the 20 days to file an answer.

I'll get back to this later this evening. Just posted to let you know I read it.

[itsmedh]

Thanks. I really appreciate the help will look forward to your reply.

[itsmedh]

Hannah don't mean to rush you but wanted to make sure you did not forget me.

[hannah]

Quote:

Originally Posted by itsmedh Hannah don't mean to rush you but wanted to make sure you did not forget me.

That's ok. I've been trying to figure out a way to mitigate this and I'm not sure it can be.

The facts as I understand them is that you did have the JC Penney card. You ran up over $2k in charges. GE Money Bank, the lender, has sued you for the entire amount in magistrate court with a statement as evidence with presumably your name and addy on it. I cannot see a way to mitigate this debt. With the evidence presented, you are going to lose this case if you are truthful.

That said, you could always claim it wasn't your card and risk being found out to be a liar or the magistrate might believe you and find in your favor. I do not advocate this route as it is always risky to commit perjury which is a criminal charge.

If this were a debt buyer who had to prove the debt you would have a shot. With it being the original creditor, you haven't any defense. I'm sorry. If it were me in this position, I would call the attorney for the plaintiff and tell him/her without admitting to owing the debt, in the interest of settling this case without a court appearance you would be willing to settle the debt for a certain percentage of the debt. They will either agree to accept it or counter the offer with one of their own. Do not admit you owe it, do not confess to judgment. If you go to court, you will without a doubt in my mind (unless the plaintiff's attorney does not show up) lose and there will be a judgment against you. They can attach your wages, put a lien on any real property, or have a Sheriff's Sale where the Sheriff can come take your assets and sell them to meet your debt. You want to avoid these three outcomes if at all possible as a judgment must still be paid and will stay on your credit report a lot longer than a charged off JC Penney card.

What do you think you could pay to settle it? Think about it in two payments. If it were me I'd start at offering 30%.

I really am sorry. There is not much that can be done with your case to defend it against the original creditor. I have attached a West Virginia Magistrate Court Answer Form to this post. It is pretty self explanatory to fill out but if you have any questions, please PM me or ask on this thread. Let me know if you are going to try and settle it and I can help you with what to say on your phone call to them and in writing your agreement for them to sign.

Again, I'm sorry. There is just no way I can see to win this one.

[jlynn]

Quote:

Originally Posted by itsmedh Thanks Hannah. I am in Berkeley County, WV. The last payment was in March, 2008. The plaintiff is GE Money Bank. The complaint says that the defendant is indebted to the plaintiff and an obligation is past due of 2266.06, plus interest accruant according to WV 56-6-31 from date of judment and paid and request the following relief freom the court: judgment against the defendant for the sums set forth abve and court costs. Attached is exhibit A which is JC Penney statement showing charge of account Principal 1855.78 and finance charge of 410.38. It also contains the information that gives us the 20 days to file an answer.

You made the last payment in March, but were you in default then, and if so did the payment bring it current?

If you weren't in default in March, then all I can say is wow - they have moved to suit fast.

[centex]

Quote:

Originally Posted by jlynn You made the last payment in March, but were you in default then, and if so did the payment bring it current? If you weren't in default in March, then all I can say is wow - they have moved to suit fast.

OP has acknowledged being involved with one of the stupid-ass 'negotiation' companies...those ALWAYS fast-track the litigation. Friend got roped into one of those on accounts that were all current and was sued inside of 120 days by two of the creditors.

[hannah]

Quote:

Originally Posted by centex OP has acknowledged being involved with one of the stupid-ass 'negotiation' companies...those ALWAYS fast-track the litigation. Friend got roped into one of those on accounts that were all current and was sued inside of 120 days by two of the creditors.

That's because you already given advance warning of impending default. You can bet they will bring all CNI docs into court to verify that OP did indeed owe this money.

[itsmedh]

To answer the first question no I was not in default until after March when CNI told me to stop paying all of my credit cards. Better yet is the letter that I received from CNI today advising me that they would be contacting the lawyers on my behalf but could not help me with my summons and it was my decision how I wanted to handle it but...if I did not legal help they had attorneys and then sent me a sheet of the hourly fees for these attorneys. I am really between a rock and hard place right now as I am paying CNI over 700.00 a month which leaves me no money to take on my debt myself. I paid them since March and they have negotiated one card for me. I would like to just tell them that I no longer want to use them and negotiate them myself. Would it buy me anytime to negotiate if I would answer the complaint and blame it on CNI that they were talking to the creditors and I had been sending all billing to them to handle?

[jlynn]

Quote:

Originally Posted by itsmedh Would it buy me anytime to negotiate if I would answer the complaint and blame it on CNI that they were talking to the creditors and I had been sending all billing to them to handle?

No, unfortunately, in the eyes of the law, the blame lies solely with you.

[Enigma]

I would call them, advise them that you relied on their guidance to your determent. Demand a full refund of all fees paid or you will retain counsel to file suit.

I'd them file complaints with my state AG office, CNI's AG office. Contact my congress critters. In other words, raise all holly hell. The more noise you make, the more inclined they will be to refund your money.

[hannah]

Quote:

Originally Posted by itsmedh To answer the first question no I was not in default until after March when CNI told me to stop paying all of my credit cards.

Do you have this in writing such as in an email?

Quote:

Originally Posted by itsmedh Better yet is the letter that I received from CNI today advising me that they would be contacting the lawyers on my behalf but could not help me with my summons and it was my decision how I wanted to handle it but...if I did not legal help they had attorneys and then sent me a sheet of the hourly fees for these attorneys.

THEY would be contacting the attorney? Did you agree to this? This crosses the line of UPL unless CNI is in AZ.

Quote:

Originally Posted by itsmedh I am really between a rock and hard place right now as I am paying CNI over 700.00 a month which leaves me no money to take on my debt myself. I paid them since March and they have negotiated one card for me. I would like to just tell them that I no longer want to use them and negotiate them myself.

How much of the $700 monthly is going towards paying down your debt?

Quote:

Originally Posted by itsmedh Would it buy me anytime to negotiate if I would answer the complaint and blame it on CNI that they were talking to the creditors and I had been sending all billing to them to handle?

Perhaps but ultimately you are the one who owes the $$ and you are the one that will get hurt. They are now trying to get you to pay their attorneys to handle it for you. Trust me on this, in WV magistrate court you are going to lose. With what Penney's has to document that you owe this, you are going to lose and paying CNI's attorneys are not going to change that.

How much do you owe all together with all debts? Have you spoken to a BK attorney?

[itsmedh]

I will check but I am pretty sure even in my paperwork I was told to stop paying all credit cards as well as in all phone calls. I did not give them permission to negotiate with the attorney but I did notify them about the summons and they called asked me a lot of questions about my financial status and said that they would get back to me but I had to give them a couple of weeks. They do have a blanket POA that allows them to talk to creditors. Of course I have no intention of using their attorneys and not that in the end I am responsible but I am just trying to have some time to negotiate with the attorney before they are awarded a judgment. I send them 720 each month and about 300.00 goes to them for fees and costs. I had been paying this since March and the first account settlement was not until November and only after I reported them to the BBB.

[hannah]

Quote:

Originally Posted by itsmedh I will check but I am pretty sure even in my paperwork I was told to stop paying all credit cards as well as in all phone calls. I did not give them permission to negotiate with the attorney but I did notify them about the summons and they called asked me a lot of questions about my financial status and said that they would get back to me but I had to give them a couple of weeks. They do have a blanket POA that allows them to talk to creditors. Of course I have no intention of using their attorneys and not that in the end I am responsible but I am just trying to have some time to negotiate with the attorney before they are awarded a judgment. I send them 720 each month and about 300.00 goes to them for fees and costs. I had been paying this since March and the first account settlement was not until November and only after I reported them to the BBB.

If I were you I would try and get all monies paid to them back by filing a complaint with the WV AG.

But more pressing is the answer to your suit. If you do not answer, you will hand them a default judgment. If you do answer, they will in all probably win but at least you will have tried to resolve this. Sometimes a magistrate will try to get the two sides to settle a debt the day of the hearing without the defendant receiving a judgment. As I stated before, I would try to resolve the matter myself with the attorney for Penney's. CNI is another matter and is not in and of itself a defense for you not paying the debt but you being sued is damages against CNI should you sue them.

[jlynn]

Quote:

Originally Posted by hannah you being sued is damages against CNI should you sue them.

Assuming the contract he signed with CNI did not indicate they were not liable if any creditor chose to sue him. Somehow I imagine that part is in there.

[hannah]

Quote:

Originally Posted by jlynn Assuming the contract he signed with CNI did not indicate they were not liable if any creditor chose to sue him. Somehow I imagine that part is in there.

I did look up CNI and found numerous BBB complaints against them. They are not registered with WV SOS to do business here. I also took a look at their "contract". They do state that suit can happen but if they actually told OP to not pay his/her debts and he/she has the proof, a good argument can be made that could award damages to the OP in the event of suing CNI. I have not seen the contract he/she signed but there would be ways of getting around it since it's illegal for them to do business here.