logo

Debtconsolidationcare.com - the USA consumer forum

Debt Validation

Date: Wed, 03/10/2010 - 09:36

Submitted by kdestef
on Wed, 03/10/2010 - 09:36

Posts: 44 Credits: [Donate]

Total Replies: 6


I mistakenly did not send a debt validation request within the 30 day period to a collection agency, Arrow Financial Services, who is seeking a debt that I do not believe they can validate (and may not even legally own). A validation letter wasn't sent to them out of my own ignorance. I wasn't aware of my rights and the steps to take at the time they first initiated contact and I can't afford to hire legal cousel or anyone to instruct me on procedure. I unfortunately found this great and informative forum after all this occurred but am hoping someone might have some advice on what to do.

This collection agency, Arrow Financial, has now hired legal counsel, Machols and Johannes, LLC (Colorado), to seek payment on this supposed debt. Machols and Johannes first served me with a summons and complaint of which I responded in writing and filed with the court. I neither denied or admitted to the debt but requested that their client, Arrow Financial, provide proof that they owned this debt. I heard no response (probably because they are no longer legally obligated to validate since it is beyond the initial 30 day period I'm allowed to request this information).

Now, Machols and Johannes is taking me to trial. Can I still request validation from Arrow Financial? Would it even do any good? I know they probably won't respond because legally, at this point, they don't have to. If I send a request for validation and they don't respond, can I use that fact at the trial? Simply admitting to my ignorance of the initial validation period knowledge and that when requesting proof anyway, Arrow Financial, nor their representation, provided proof that they own the debt? What can I do? Do I just wait to see if they can provide proof at the trial and ask Machols and Johannes there for the list of legally validating documentation (ie- letter of sale or assignment from the original creditor to Arrow, the original agreement bearing my signature, etc)?

I've heard that Machols and Johannes might try and have me admit to the debt of the original creditor (Bank of America) and was told by a forum memeber not to admit to anything, that they could claim that as proof that I am admitting to the debt they are requesting. However, I don't want to lie! How would I answer a question like this? I just want them to prove that their client, Arrow Financial, legally owns the debt and can prove that they own the debt.

Help! I'm getting really nervous and want to have whatever documentation is recommended ready. It looks like this may be happening whether I like it or not.


Quote:

Originally Posted by clueless
I would say I can neither confirm nor deny the debt even if they mention bank of america, because unless they give you something that proves its yours, how do you know its actually the debt that you owe?

True, this is a good point and good way to handle the question. Thank you.


lrhall41

Submitted by kdestef on Wed, 03/10/2010 - 11:18

( Posts: 44 | Credits: )


Quote:

Originally Posted by kdestef
I just want them to prove that their client, Arrow Financial, legally owns the debt and can prove that they own the debt.


You also want them to prove that it's actually your debt in the first place, via signed contract or similar means. And that the amount is accurate, including (especially) any interest, penalties, or fees that have been added on. And that the SoL hasn't run. And, and, and...

Never settle for kicking them in the shins, when you can kick'em in the teeth instead.


lrhall41

Submitted by unclewulf on Wed, 03/10/2010 - 17:48

( Posts: 3172 | Credits: )


It is true that you can't ask for validation now in the traditional way, but you CAN ask for all the same stuff during Discovery....you can ask for proof they are legally collecting (any licensing they may have, proof of sale) and you can ask for the last statement to show proof of amount owed AND contract (signed by you) to prove any interest and/or fees they say you owe.

You would not be lying if you claim you do not recognize the debt because they have provided you with NOTHING that proves this debt is yours. You answer any interrogatories with "insufficient information to agree or disagree"


lrhall41

Submitted by goldenbast on Wed, 03/10/2010 - 19:56

( Posts: 2884 | Credits: )


Quote:

Originally Posted by goldenbast
It is true that you can't ask for validation now in the traditional way, but you CAN ask for all the same stuff during Discovery....you can ask for proof they are legally collecting (any licensing they may have, proof of sale) and you can ask for the last statement to show proof of amount owed AND contract (signed by you) to prove any interest and/or fees they say you owe.

You would not be lying if you claim you do not recognize the debt because they have provided you with NOTHING that proves this debt is yours. You answer any interrogatories with "insufficient information to agree or disagree"

Great! Thank you for this information. When you say I can ask them for all the "same stuff during Discovery", when does this take place? At the trial? prior to the trial? I've heard several forum users mention the discovery period, but I'm not really sure when this is? The Law firm representing Arrow Financial has given me nothing or eluded to this "Discovery period". Do I initiate it? Can you enlighten me? Thanks!


lrhall41

Submitted by kdestef on Mon, 03/15/2010 - 10:43

( Posts: 44 | Credits: )


You need to initate discovery after you have filed your answer to the plaintiff's complaint. This is before the trial. Basically there are 3 types of discovery: interrogatories (questions), request for admissions, and request for production of documents. Check your state's rules of civil procedure for more details. Also check other forums where there are examples. You want to make them produce all the documents and evidence they have prior to the trial.


lrhall41

Submitted by on Mon, 03/15/2010 - 13:29

( Posts: | Credits: )