[ubeube]

Hi,

I thought everyone seemed pretty friendly on this forum and that I might ask for a bit of advice .

I am being sued by American Express (represented by Mitchell Kay) in the special civil part for a defaulted debt of $5000.

Here are the relevant facts:

1. This is one of 3 Amex accounts that I had that were cancelled for financial review.

2. I have only missed only one or two payments ever on these accounts, and am still paying the monthly payments that Amex requests in the monthly bills they send me. (The bills do say that "This bill is for informational purposes only" &etc., however, I pay online, and the bill online does not say that, and after payment credits my account like always.)

3. This particular debt was first sent to GC services, who after my request for further information stopped trying to collect, then to NCO, who did the same.

4. I received a summons and answered it with a standard answer saying that I am without knowledge.... etc.

5. I received a Jury trial court date today for sometime in July.

I now plan on sending some interrogatories, but am not exactly sure what to ask. Maybe for proof of the contract, detailed account summaries, and proof of default.

Do I have to file a motion for discovery before submitting the interrogatories?

Any advice on anything would be appreciated.

Thanks !

[centex]

This sounds like fresh paper. AXP still owns it. They will have the documents necessary to prove up the claim. Unless you really want to pay a bunch of post-judgment costs and interest, you really need to be looking at some manner of getting AXP their lump sum and be done with it.

Accounts closed for F/R and then having a missed payment are likely what sent up the red flag that was then compounded by you going through the DV process with a company KNOWN for litigation soon after a delinquency.

[ubeube]

Hi,

Thanks for the reply. I really can't get them the lump sum, and that's the problem.

I don't mind paying them as I have, even with the outrageous default interest, but they really do seem to want the full payment all at once.

Even if I were to some how get the cash for this account, I am worried that they would do the same for the other two cancelled account, and then the total to be paid would be somewhere along the lines of $12,000. That's something I definitely can't pay at once, no matter how hard I try and raise it.

I still am paying them the monthly payments, I just wish there was some way I could negotiate continuing this.... They are getting their money how they originally expected it..

I just might have to declare bankruptcy and leave the country!

[centex]

The problem you run into is the post-judgment remedies that might exist once it goes to court and judgment renders...not to mention, you WILL be assessed attorney fees and post-judgment interest.

Running the DV game on fresh AXP paper was not the best thing to have done...especially since you were still able to pay in on the AMEX site and the fact that their third parties usually don't report to the bureaus.

[ubeube]

I'm sorry, Im not sure I understand what you mean by DV process? Are you referring to my requesting the collectors for more info?

I have no assets ($200 in bank account) and am actually going to, of all places, law school next year so there are no wages that they can garnish. I have been paying the monthly payments with my past earnings and the help of my parents so I guess the post-judgment remedies will basically just hang over my head for a few years....


You don't think there's anyway to get AXP and Mitchell Kay to negotiate before this?

Also, does anyone know about my original question, whether I have to file a discovery motion before submitting interrogatories?


Thanks again for all the opinions

[Enigma]

Agreeing with Centex, since you write you want to continue monthly payments, but cannot afford a lump sum amount, you are a prime candidate for a Chapter 13 bankruptcy.

There are a lot of upsides to a Chapter 13 and it will stop this lawsuit.

[Enigma]

With a judgment you can basically forget on being admitted to the Bar.

A fresh Chapter 7 won't help you with the Bar either.

Discovery is an all encompassing word that includes interrogatories.

AMEX has a memory like an elephant. They've been scanning and archiving documents long before scanning and archiving documents was in vogue.

[Qtip]

ubeube,

Are they suing because they want the money now? Are you in a position to get another CC and do a balance transfer? My guess is no as you would have done that already, but does not hurt to ask.

Unfortunately as Enigma and Centex pointed out, this is fresh paper and it would be on your best interest to try find an amicable resolution out of court. They will win in court and you will be responsible for court cost etc...

Without knowing your financial or personal information, looking into chapter 13 might be an option. I know that is not something you probably want to hear and is not something we enjoy telling anyone. Your options are a little limited at this point.

Sorry...

[ubeube]

Thanks for all the replies.

Does it mean anything that they, Amex, still report on my credit report that the account is credit? They even updated it yesterday.

Also, if I do pay them off, but directley, will I still have to talk to, pay the fees, to Mitchell Kay?

Thanks

[Qtip]

Originally Posted by ubeube

Thanks for all the replies.

Does it mean anything that they, Amex, still report on my credit report that the account is credit? They even updated it yesterday.

Also, if I do pay them off, but directley, will I still have to talk to, pay the fees, to Mitchell Kay?

Thanks

I guess the reporting of the accounts on your file at this point is secondary. In your current situation the way they are reporting will not help you right now or give you any kind of leverage to resolve your current problem.

It is important that the information on your file s accurate but that is a whole other issue. Maybe I am wrong on that assumption and someone else can chime in.

I do not have an answer for your second question but I know others on the forum do.

[jlynn]

Is the account current, albeit cancelled now? I don't understand why Amex is suing on an account that is being paid as agreed now. Have you contacted Amex? Have you contacted the CA to see if you can get a stipulated judgment (I don't believe there is anything recorded with the courts as long as you never miss a payment.)

[centex]

Originally Posted by jlynn

Is the account current, albeit cancelled now? I don't understand why Amex is suing on an account that is being paid as agreed now. Have you contacted Amex? Have you contacted the CA to see if you can get a stipulated judgment (I don't believe there is anything recorded with the courts as long as you never miss a payment.)

I am sure that what triggered the suit was the DV nonsense when AXP placed the account for servicing purposes...that is a BIG RED FLAG to AXP. OP had a viable agreement in place but when they started playing the DV game on a current account that had been shut down, they sent the signal to AXP that they were not going to continue making payments, at which point AXP was all but guaranteed to up the ante and move it to a courtroom...

Sadly, the OP fell into the DV trap without understanding the consequences in this instance. It should serve as yet another example for people to look at in understanding why it is always stressed to know WHY you are doing something and WHAT the potential consequences might be...

[ubeube]

Originally Posted by jlynn

Is the account current, albeit cancelled now? I don't understand why Amex is suing on an account that is being paid as agreed now. Have you contacted Amex? Have you contacted the CA to see if you can get a stipulated judgment (I don't believe there is anything recorded with the courts as long as you never miss a payment.)

Hi,

The account is reported as current, and I am paying as agreed, but I believe they have it on their own records as defaulted because I was late on one or two payments a few months ago (after it was cancelled).

Last time I contacted Amex they actually forwarded my phone call to the CA, who at the time was GC. GC, in turn, told me that I had to pay in full or I would be sued etc..

This is what bugs me though, that I am paying them, and do want to make good on my debt, but just at the terms I thought I would have to when I acquired them... e.g. monthly. They don't seem to care, or even realize that just letting me pay, with the interest adding up will let them collect more and will, I believe, not foreclose the option of suing me later as long as the debt is open....

[ubeube]

Originally Posted by centex

I am sure that what triggered the suit was the DV nonsense when AXP placed the account for servicing purposes...that is a BIG RED FLAG to AXP. OP had a viable agreement in place but when they started playing the DV game on a current account that had been shut down, they sent the signal to AXP that they were not going to continue making payments, at which point AXP was all but guaranteed to up the ante and move it to a courtroom...

Sadly, the OP fell into the DV trap without understanding the consequences in this instance. It should serve as yet another example for people to look at in understanding why it is always stressed to know WHY you are doing something and WHAT the potential consequences might be...

I never did stop making payments though, and when I requested GC stop calling me, only send correspondence by mail, and confirm that they were authorized to collect the debt, I made clear that I was paying and wished to continue paying as agreed to AXP directly.


AXP has also never directly sent me a bill indicating that payment in full is due, or why it is.

[Qtip]

Originally Posted by centex

I am sure that what triggered the suit was the DV nonsense when AXP placed the account for servicing purposes...that is a BIG RED FLAG to AXP. OP had a viable agreement in place but when they started playing the DV game on a current account that had been shut down, they sent the signal to AXP that they were not going to continue making payments, at which point AXP was all but guaranteed to up the ante and move it to a courtroom...

Sadly, the OP fell into the DV trap without understanding the consequences in this instance. It should serve as yet another example for people to look at in understanding why it is always stressed to know WHY you are doing something and WHAT the potential consequences might be...

Is amex that anal? I cannot see them suing someone over a Debt Validation. I would not even think that they would forward the debt to a CA over one missed payment. If OP information is accurate, then amex is really putting their foot down. I known them to be proactive but not to this extreme.

[Enigma]

Did you include Affirmative defense(s) in your Answer?