Arbitration - How to Proceed

[nhcredit]

What is the name of your state? NH

I have a couple of past credit card debits which I can not afford to pay in one lump payoff. I have tried to work with some of the various collection agencies, $100 dollar payments, but that hasn't worked out.

I have now received a FedEx letter from I think the claimant, but a claim listed as: In The National Arbitration Forum Claim

They want an answer in 30-days, or a judgement will be made. My concern is, win or loose, I can not pay the entire balance at once. What happens if I'm sued or a finding is ruled? How will this impact my cars, house, job, etc? I don't think there is credit card jail, as 90% of the US would be in lockdown, but can you be arrested or is this just a civil issue?

Any help and advise is appreciated. My other thought is bankruptcy too.

Thanks!

 

[JETX]

From your post, I doubt that this firm has anything to do with 'arbitration' and is more likely a debt collector with a 'suggestive' name. This is partly based on the fact you present no 'challenge' to their claim that would require, or start, the arbitration process.

"They want an answer in 30-days, or a judgement will be made."
*** Further suggesting that they are not true 'arbitrators'. An arbitrator does 'dispute resolution' and wouldn't threaten a 'default' judgment in the event you don't respond.

"My concern is, win or loose, I can not pay the entire balance at once. What happens if I'm sued or a finding is ruled?"
*** The plaintiff (creditor) is given a judgment by the court. They can then use that judgment to seize or levy any non-exempt assets that you might have.

"How will this impact my cars, house, job, etc?"
*** As noted above, the judgment creditor can sieze any non-exempt assets.... including garnishing your wages.

"I don't think there is credit card jail, as 90% of the US would be in lockdown, but can you be arrested or is this just a civil issue?"
*** Purely a civil matter... until such time (if it happens) that you are served with an order to do something (appear, answer questions, etc.) and you fail to comply. The creditor can then file a 'contempt' charge against you and the court could issue a warrant for your arrest for the contempt.

 

[nhcredit]

non-exempt assets

what are some types of non-exempt assets?

I need my house, cars, and computer for work and living, I don't own anything except an old tractor... what can they take or sell?

I also read a post that they can't take away wages, is bankruptcy a best option? I hear people get fresh starts and have better credit after the fact, is this true?

 

[JETX]

Here is a list of the exempt property in New Hampshire. Anything NOT on this list, or in excess of the amount shown..... is NOT exempt and subject to judgment levy and/or seizure.

Homestead: Real property or manufactured housing up to $50,000. Must own the land.

Pensions and Retirement Benefits: Funds exempt for public employees' federal pension, but only benefits accruing. Firefighters, police officers and public employees. No protection for IRAs.

Insurance: Homeowner's insurance proceeds up to $5,000. Firefighter's death and disability benefits. Fraternal society benefits.

Personal Property: Beds. Bedsteads. Bedding. Furniture. Sewing machine. Cooking utensils needed. Cooking and heating stoves. Refrigerator. Household furniture up to $3,500. Automobile up to $4,000. Bibles and books up to $800. Burial place. Clothing. Jewelry up to $500. Proceeds for lost or destroyed exempt property. Cow. 6 sheep or fleece. 4 tons of hay. Food and fuel up to $400.

Tools of Trade: Tools and implements up to $5,000. Military members uniforms, arms and equipment. Cow, yoke of oxen or horse when needed for farming.

Miscellaneous: Business partnership property. Child support. Jury and witness fees. Minor child's wages.

Wages: Up to 50 times the federal minimum weekly wage, or as determined by a court.

Public Benefits: Workers' compensation. Unemployment compensation. Aid to blind, aged and, disabled. AFDC.

Wild Card: $1,000 of any property, plus up to $7,000 for unused portion of automobiles, bibles, books, food and fuel, furniture, jewelry, and tools of the trade.

 

[nhcredit]

clarification - sorry

I'm not clear with the wording not exempt vs exempt.

From your reply, a court in NH can take everything I own to pay off a creditor to clear my debt, including personal poperty, my house, and cars, even though I make ontime payments to those, is that correct?

If that's the reality, BK is my best option.

Thanks for all your help!

 

[nhcredit]

clarification - sorry

Ok, I keep re-reading this. They can only take or levy items in which I have excess of.

So if I have a tractor that isn't used for farming and it's value is $7000, they could take that.

But they can't take or levy my house, as I don't own it or the land, a mortgage company does and I don't have an issue with them.

Is that a correct understanding?

 

[JETX]

"So if I have a tractor that isn't used for farming and it's value is $7000, they could take that."
*** Sort of... you are allowed certain 'miscellaneous' exemptions (as noted). If you have a sufficient amount of exemptions 'left over' you could use it to 'exempt' other assets. However, if all your exemptions are 'used up', then anything that is not specifically exempted....or protect, can be subject to sheriff seizure and auction. With the proceeds going to pay the creditor.

 

[empowerment]

It is not unusual for a collection agency’s clerks to use “scare” tactics in their collecting process. Position officially entitled “Collector” with the average pay at $10- $11.00 per hour however; they must maintain a monthly quota in order to maintain their employment. From threats, false promises (verbal) to harassing phone calls, many collectors violate the law, while this may not be something that the company promotes, however consumer unaware of their rights afforded to them under the Fair Debt Collection Act, are often scare into paying without getting validation, or exercising many of the their rights afforded to them. In your case, while you are unable to meet their demand, you can certainly exercise you’re your right to offer what you can pay. Simply keep your correspondences by mail. I would not resort to phone calls, faxes unless you are trying to get a department head name or address. Understand this much, when you place to a collection agency, nine times out of ten, you are getting a clerk (collector) and their only interest is to meet their quota. So communicating with them by phone is not and will not help your situation. You want to keep your communicating by mail (certified only) and maintain a journal of all of your conversations and transaction with them. Since you are willing to make some restitution on your bills, then in my opinion, I would suggest that you write a letter and submit an offer to them regarding your intentions and what you are willing to pay and can afford to pay…you also might want to include that their terms will create an hardship for you and your terms allow you to work within your budgeted ability. You might also want to consider a restrictive endorsement, however I would strongly suggest that you do some research in this area and how it apply to your State Laws. Understand the rules that apply to “Restrictive Endorsement” an offer must be made…before a check is submitted with restrictive endorsement verbiage. This will be the only thing that can upheld your RE if it ever escalate to a court of law. Again you want to check with an attorney in your States for more information on this process and how it can work if at all in your case. Remember, the collection agency is in the business of getting money on outstanding debts. You are in a position to negotiate with them however, it is important that you make then aware that you are very abreast on the FDCA and the FCRA. Once they know that you know your rights, I think you will be in a better position to work through your situation.

 

[nhcredit]

Letter to Creditor / Arbitration

I know this is long, but is this an appropriate response?

March 3rd, 2004

eCast Settlement Corporation
c/o NCO Financial Systems, Inc.
address
address

Re: eCast Settlement Corporation v XXXXXXXXXXXXX
Forum File Number: XXXXXXXXXXXXXXXXXX
Account No.: XXXXXXXXXXXXXXXXXXXX

Dear XXXX XXXXX:

I am responding to your non-dated letter I received, in reference to a collection amount of
$ XXXXXX. Per your letter, I am in default of a debt owed to MBNA and eCast
Settlement Corporation. I had previously worked with MBNA on a past debt, however I
have no knowledge of eCast, their corporation, and/or any debt with them.

At this time, I request full written verification of this debt. Given past agreements with
MBNA and multiple payments, I believe the current balance owed is incorrect. To my
knowledge, if I owe anything at all, it should be much less given past payments.

Per your claim letter, this claim has been submitted to the National Arbitration Forum.
Thee is no indication that this claim has been filed as of yet with the:

National Arbitration Forum
address
address

I would like to work with you and your office to resolve this issue. Your current terms for
full payment will create a hardship for me. To work within my budgeted ability, I can
afford to make monthly payments of a $XXX dollars. Enclosed is a check for a $XXX dollars
as a good faith payment to work with your office.

My preferred means of communication is mail. If you have any questions or information
for me in reference to this account, please let me know. I look forward to hearing from
you and resolving this matter.

Regards,

Name
Address
Number

 

[nhcredit]

should I send money?

how does this letter sound and should I send money to this company?

 

[Ladynred]

First - you don't want VERIFICATION, you want VALIDATION - there IS a distinct difference.

Whatever you do, do NOT send them a personal check. Get a cashier's check or a money order from any bank but your own and make sure you keep all receipts.

However, by asking for validation and then turning around and admitting the debt by sending a check you are defeating yourself. You need to do one or the other - demand validation and wait for them to provide it, or set up a settlement agreement and do NOT pay them a red cent until they agree, IN WRITING.

Never, NEVER, give them anything with your banking information - you may wake up one morning to find your bank account raided.

Next question - when was the last time you paid MBNA directly ?? NH has a very short 3 year SOL. If its been more than 3 years since you made a payment, you have another even better way to get rid of these vultures !

 

[nhcredit]

3 year SOL??

OK, I looked up SOL and for open accounts (credit cards) the SOL is 3 years.

The accounts have been sold off for at least 2 maybe 3 years now. Does that mean they can no longer collect on me given I'm in NH?

I'm just nervous about losing my house, cars, or garnishment of wages.

Your help is Great, Thanks!

 

[Ladynred]

You need to find out, ASAP, when this account went delinquent with MBNA. If it was 3 or more years ago, then you have a virtually iron-clad defense against them.

If you haven't already done so, pull your credit reports. You can get them on-line for $9 at each of the 3 credit bureaus.

You want to look for the last payment date to MBNA. The charge-off can be helpful to look for as well. The account would have gone delinquent 180 days BEFORE the charge-off date.

Once you can nail down the last payment date, you can proceed accordingly. If you have any old statements or letters from MBNA, that would also help.

It is unlikely they could take your house or your vehicles unless you have a LOT of equity in either. Wages can be garnished and bank accounts can be levied. However, they cannot do ANY of that without first getting a judgment against you in court.

 

[nhcredit]

SOL - almost 3 years

some of my debt is almost 3 years old, but not yet. I'll will be asking for validation on the debts.

whatelse can I do to ensure I don't lose my house, cars, etc...