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Received summons for Arrow Financial - Should I look into Debt Consolidation?

Date: Tue, 11/17/2009 - 18:59

Submitted by anonymous
on Tue, 11/17/2009 - 18:59

Posts: 202330 Credits: [Donate]

Total Replies: 11


I live in TN and just received a Civil Summons tonight. It states that Arrow Financial has brought a suit against me for the principle amount of $1937.99 + $146.85 in court costs and a processing fee of $30. The Civil Warrant was issued on Oct. 28. The court date is Dec 11.

The only thing given to me was this summons. There was no other paperwork, complaint, etc. I was not asked to sign anything. I was told by the guy that served the summons to just call the attorney for the plaintiff and I could probably set up a payment plan and avoid court.

I've spent a couple of hours reading through threads on this site, but still have no idea what I should or can do.

I am a full time student about to go into grad-school that works at a restaurant on an on-call basis. Some weeks I get a couple of shifts and some weeks I do not get any at all. One of my private student loans is already in repayment. It is $318/mo while the rest are in deferment, because they are government loans.

My total debt in bad standing (which does not include student loans) is $9,662. The most I could probably pay per month on any of these additional debts is $40 total. Should I look at going to a lawyer for debt consolidation, what does going to a lawyer for debt consolidation entail, and would a lawyer or any other debt consolidation service be willing to accept a payment as low as $40?

Also, if I do get into a debt consolidation program that includes this debt I have been summoned for, would this suit be dismissed?

Also, the amount that Arrow is asking for does not match the amount that is showing they own on my credit report.

I had a free credit report done three months ago and the only thing on there from Arrow Financial was this:

ARROW FINANCIAL SERVICE
Address:
5996 W TOUHY AVE NILES, IL 60714 (800) 279-0224
Account Number:
XXXXXX
Address Identification Number:
XXXXXXXX
Status: Collection account. $3,100 past due as of May 2009.
Status Details:
This account is scheduled to continue on record until Aug 2014.
Original Creditor:
GE MONEY BANK
Date Opened:
05/2008
Reported Since:
08/2008
Date of Status:
08/2008
Last Reported:
05/2009
Type:
Collection
Terms:
1 Months
Monthly Payment:
$0
Responsibility:
Individual
Credit Limit/Original Amount:
$2,642
High Balance:
NA
Recent Balance:
$3,100 as of 05/2009
Recent Payment:
$0
Account History:
Collection as of Dec 2008 to May 2009, Aug 2008


If I was in your place I'd have checked with the county court to confirm that it indeed is a genuine summon. You also need to contact the court clerk to file an answer for the summon since you have got only thirty days to respond. It's important to file an answer to prevent arrow financial services from winning a default judgment against you. Outside the court settlement might not always be a good idea, especially if you have a sound defence.

Check the following link, you may find it useful.

"http://www.nedap.org/hotline/settle.html"


lrhall41

Submitted by SC on Tue, 11/17/2009 - 19:59

( Posts: 3937 | Credits: )


Quote:

Originally Posted by Shazzers
Did you ever receive a dunning letter (letter of collection), or is this the first you have heard from Arrow?


As far as I can remember, I have not received a letter from them. When I receive mail from creditors, I usually only look at the original creditor and the amount. I certainly do not remember receiving anything asking for that amount. I have not kept collection notices on file in the past if I know I cannot pay. So, it is possible they sent me one and I just do not remember.


lrhall41

Submitted by on Tue, 11/17/2009 - 21:26

( Posts: | Credits: )


Quote:

Originally Posted by SC
If I was in your place I'd have checked with the county court to confirm that it indeed is a genuine summon. You also need to contact the court clerk to file an answer for the summon since you have got only thirty days to respond. It's important to file an answer to prevent the collection agency from winning a default judgment against you. Outside the court settlement might not always be a good idea, especially if you have a sound defence.
Check the following link, you may find it useful.
"http://www.nedap.org/hotline/settle.html"


What should I say in an answer for the summons, and what constitutes a sound defense?

I'm pretty certain I know who the original creditor is. I am a college student without a steady income. If I answer the summons and go to court how should I defend myself? Should I ask for validation that they own the debt that I supposedly owe? If they do provide validation what options do I then have? It is highly unlikely that I could afford anything more than $40 a month if I were to settle. If it came down to it, are they likely to accept this?


lrhall41

Submitted by on Tue, 11/17/2009 - 21:50

( Posts: | Credits: )


First: Have you checked with the court to make certain that this is a real case? If not, please do so Monday morning. Then get back to us about it.

Second: You must defend this, or you will have a default judgement against you from these clowns.

Third: Debt consolidation will not do anything for you with this issue, at this stage of the game. Neither will sending a debt validation letter to Arrow. That's no good if they've already sued.

Fourth: You will need to request validation in discovery, through the court. If they don't cough it up, the court will either compel them to produce the documents, or dissmiss the case.

What can you tell me about the debt in question? Type of account, when you last made a payment or a charge on it, anything like that would be helpful. I can then suggest some more ideas.


lrhall41

Submitted by unclewulf on Sun, 11/22/2009 - 20:07

( Posts: 3172 | Credits: )


Quote:

Originally Posted by Anonymous
glad some mods don't keep pushin debt consolidation what makes this site tha $ :-)



You don't get it, do ya? We (the moderators) don't work for this site, or for InterNext. I'm a freelance IT consultant currently working in the telecommunications industry. Some other mods work in finance or banking, some do other things. None of us are under any obligation to push this site's services, nor have we ever been asked to do so. We're here as moderators because we've been through the debt wringer. We fought our way out, and now we're helping other people break free, too.

I am quick to suggest debt consolidation, if that option makes sense for the person I'm helping at the time. For the person I'm trying to help in this thread, it would make less than no sense at all. He's already been sued, so we deal with that. Anything else would be doing him a dis-service, and making his problems worse.


lrhall41

Submitted by unclewulf on Mon, 11/23/2009 - 03:36

( Posts: 3172 | Credits: )


I'm glad this was brought up. I was just reviewing my credit report and see Arrow Financial bought one of my credit card accounts. I honestly think I paid this one off in 2007, but I was going to send a letter to them requesting verification, just in case. (I have never received any information from them.) I just checked my court records tonight because I had another judgment I am paying on; saw that in August Arrow tried to summons me to court but couldn't serve me because the address was wrong. Do I still send them a request for verification? Will this just alert them to where I am. I think this original debt must be the credit card that was closed the beginning of 2007 (although it is showing as opened in May 2008--last activity Sept. 2007--which makes no sense!) Thanks.


lrhall41

Submitted by on Thu, 10/28/2010 - 22:59

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