Thursday, March 2, 2017

Using arbitration against a creditor

Using pre-emptive arbitration is dependent on how much your debt is and is and how strict the venue is. In states like Wisconsin, I am judgement proof because I briefly received government assistance, to the tune of $6 per month. Arizona, however, is extremely creditor friendly. Luckily I had a year to prepare my case because I had gone through the process in Wisconsin. Arizona leaves you at most $300 of exemptions. Mostly the credit company files in Justice Court and hopes for no-contest, any motion to compel arbitration is denied. Maricopa County has a heavy case-load, so the courts are divided into small claims, and a civil justice court, and Superior Court (>10,000).

Justice Court has employees called Justices of the Peace. They’re not required to have any legal training, but then again, neither does the Supreme Court. A Justice of the Peace is an extremely lucrative position for a person without a law degree, or a degree at all, reaching the six figures. I apologize for the digression; the point is your motion to compel arbitration will likely be denied. The point of contention is even those without a degree should be able to understand the law regarding arbitration - it’s just they ignore in favor of the creditor. Two justices reviewed my case separately at different stages and both made errors. Perhaps not coincidentally, they formerly worked in the credit industry. This kind of makes sense - they’d be best designated to review the intricacies of a case like this. It also could make them pre-disposed to favor an industry that got them there (peace justices are elected).
The same goes for Guglielmo and Associates. They know about they are violating the contract, the Justices of the Peace know the law, they just cram it through. They tend to represent the Original Creditor and are not a Junk Debt Buyer. They make fees on contingency. It’s important to note an original creditor will spend $20,000 to collect $2,000. The logical assumption is they are protecting their right to collect in cases where they have a high degree of likelihood that the debtor is hiding massive assets.

This action, as of 2017, runs contrary to law.

I was able to weaponize arbitration against a company by filing a pre-emptive arbitration and the claim was dismissed. Their claim was for about $3,000. As soon as I got the dunning letter I filed for arbitration in an inconvenient venue. Always file in JAMS. I can’t say more about this case because I signed an non-disclosure agreement. FILE A CLAIM IN CALIFORNIA FOR NO REASON. The creditor will object because that’s obviously ridiculous - but they have to do so in a seven day window. Then, you’re protected from attorney’s fees during arbitration.

What are some claims you may have against a creditor?

This is a frequently asked question. There’s a class action case against Guglielmo and Discover in Nevada that basically dictated the debt validation was poorly worded, but Guglielmo and Associates in Arizona is a potent adversary. They followed the debt and FDCPA violations to a T save for one exception: they sent the debt validation letter to my neighbor. The creditor cannot contact you during the dunning period, or the five day period between when they need to validate the debt and when the debt is validated. Basically, their debt validation was invalid. I got lucky. Another possibility is contacting you at all during the dunning period, via telephone. One claim I filed for arbitration was emotional distress - I basically had nothing and if they would have followed through.

Of course, do they know they sent the letter to my neighbor and I didn’t get it until a month later? No, but they are going to pay a lot to find out. Right before I file bankruptcy, too.

A sample debt validation is as follows:

Pursuant to my privilege under the FDCPA, the undersigned request a validation of debt from your firm.

Your Signature.

You can add all sorts of requirements to the debt validation letter, but they are unnecessary for the creditor, they don’t have to in the eyes of law. Most do anyways, because the bar is so low.

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