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bigferrell
Joined: 14 Oct 2008
bigferrell's page
Posts: 2
143 Magic Points
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Subject: Arbitration. Can I win? What should I do now?
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Tue Oct 14, 2008 1:50 pm
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I need some help and advice:
I had a Credit Card Debt with MBNA a several years ago that was then bought by Bank of America, it was around $7,000. It was charged off on my report. Now almost 2 years later I got an Arbtration letter from Phillips & Cohen Associates (Newark, De) throught the National Arbitration Forum (NAF Minneapolis, Mn).
I am not even sure that this is the company that bought the account because they refuse to validate the debt. I am in Ohio so I don't think that licensing is required and the statute of limitation is 7 years so I have a few years left to go for that.
Here is what I have done so far:
6/9/2008
Received Arbitration letter from National Arbitration Forum (NAF) and
Phillips & Cohen Associates.
6/25/2008
Sent Phillips& Cohen (copied NAF) a detailed Debt Validation request letter
via certified mail w/return receipt. Quoted FDCP, demanded a cease to phone collection, and stipulated written proof in the form of a signed agreement.(Very strong letter)
8/11/2008
No validation from Phillips & Cohen so I sent a letter demanding that they
stop collection efforts and remove all information from the credit bureaus.
Also copied the credit bureaus and NAF. (also USPS return reciept)
9/22/2008
Despite previous demands in writing that they cease collection and all
correspondence must be by mail, I received 2 very nasty phone calls from
Phillips & Cohen on my home phone.
9/2008
At the end of September I got a letter from NAF stating that they were in receipt of my letter. They then gave the claimant until 10/10/2008 to produce documents for discovery.
10/14/2008
As of this date the claimant "Phillips & Cohen" has not validated and did not respond to the NAF discovery deadline.
They won't validate, didn't respond to discovery from NAF and the collection bureaus won't remove the info.
What do I do now? HELP.
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Justin
Joined: 17 Jul 2006
Justin's page
Posts: 1240
28942 Magic Points
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Thu Oct 16, 2008 9:40 am
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Since you have asked for debt validation and Phillips & Cohen has not yet validated your debt, I don't think that you are liable to that company for repaying back the debt because one month has already passed from the date you have asked for validation. Now I think that you should send them a second letter by certified mail along with a copy of the receipt you got for sending the debt validation request, and inform them that they have violated the FDCP Act and ask them to remove the listing from your credit report. Now wait for 15 days of their receipt of this letter and then send a dispute letter to the credit bureaus asking them to remove the listing from the report.
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All the Best 
Justin |
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Mary
Joined: 06 Jul 2006
Mary's page
Posts: 686
17396 Magic Points
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Thu Oct 16, 2008 10:08 am
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Until and unless they validate the debt, I think that you should not proceed further towards repaying the debt to them. Validating the debt would mean that they have to prove that they have purchased the debt from MBNA credit cards. If they cannot provide proper validation, they you can always get the listing removed from the credit report by sending a dispute letter to the credit bureaus. You can find a sample dispute letter by visiting the link http://www.creditmagic.org/repair/dispute-letter.html
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Where there's a will, there's a way !! |
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bigferrell
Joined: 14 Oct 2008
bigferrell's page
Posts: 2
143 Magic Points
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Subject: What would you do?
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Fri Oct 17, 2008 1:50 pm
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They did not validate and I won't send them any money until they do. I have already disputed this with the credit bureaus but they will not remove it.
From what I have read arbitration will go on regardless of what I do. So I am unsure of how to proceed. According to the paperwork I have, Phillips & Cohen did not meet the deadline for discovery set by the arbitration company (NAF). So... do I participate in the arbitration and demand that it go in my favor because of lack of discovery, or do I maintain that I object to and reject arbitration because I never agreed to it and this company cannot validate?
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fireyone
Joined: 26 Feb 2008
fireyone's page
Posts: 4285
127 Magic Points
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Fri Oct 17, 2008 10:20 pm
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| Good question here big and I am hoping someone will give you a direct answer. You may have to go to the hearing. The people hearing your case is a set of lawyers and they are not in favor of either side. If you do have to go take all the evidence to show you asked for the validation and did not get it.
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Firefly
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Tue Apr 14, 2009 12:17 am
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I got a letter in the mail saying in the envelope that is certified, but I did not sign anything.
The letter is from Zwicker Associates in behalf of Chase and they are claiming in the NAF. I sent a letter of validation a month ago, they received it, but they never mailed me a validation of debt, can they put me through NAF while they haven't send a validation of debt? What should I do? What comes next?
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carol
Joined: 27 Jun 2006
carol's page
Posts: 1307
Location: Los Angeles, California
29555 Magic Points
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Tue Apr 14, 2009 7:08 am
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Hi Firefly
No, unless they validate your debt, they cannot claim it as per the Federal Law and NAF is not an exception to it. As far as I know, National arbitration forum only intermediates between the creditors and the borrowers to make arbitration faster, and less expensive as compared to litigation.
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Keep in touch
Carol |
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Firefly
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Wed Apr 15, 2009 1:34 am
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Hi Carol,
Thank you for your answer, should I just ignore it or should I contact them stating that they have not validate the debt.
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carol
Joined: 27 Jun 2006
carol's page
Posts: 1307
Location: Los Angeles, California
29555 Magic Points
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Wed Apr 15, 2009 7:13 am
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Hi Firefly
Since you have already received the letter from the creditor as an answer to the debt validation, you can send a second letter telling them that they have violated the Fair Debt Collection Practices Act. These certified letters will help you in the NAF.
_________________
Keep in touch
Carol |
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firefly
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Subject: student loan
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Wed Apr 15, 2009 9:26 pm
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Hi Carol,
I know this is not the right place but I wanted to get your opinion here:
I have a 17 years daughter that will go to college this fall.
Both me and my husband have good income but bad credit, a lot of debt but we always paid our student loans, we don't have bad history with the student loans, car payments and mortgage.
We entered a debt settlement program and now we are out of it.
I am considering bankruptcy for me and my husband but maybe after she gets to college.
I just don't know how can this affect the eligibility to get a student loan for my daughter. If we don't qualify for a parent loan, can she apply on her own, even if she's 17?
FAFSA did not give me anything, they expect me to pay everything. How can I get a loan or what can she do for this year? What do other students with parents in bankruptcy process do to pay for the college?
Any shared experience would be appreciated.
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carol
Joined: 27 Jun 2006
carol's page
Posts: 1307
Location: Los Angeles, California
29555 Magic Points
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Thu Apr 16, 2009 6:48 am
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Hi Firefly
Can you tell me how much is your credit score?
As far as I know, if you go for Federal Stafford Loans, there is no credit check, and it is given to undergraduate and graduate students in their own name with no co-signer obligations. Moreover, it has a low interest rate of 6.8% APR.
I would suggest both of you to file bankruptcy only after she has obtained the loan.
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Carol |
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Thu Apr 16, 2009 8:26 pm
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| 480....but I don't know how much will the Federal Stafford Loans will cover, I think there's a limit
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carol
Joined: 27 Jun 2006
carol's page
Posts: 1307
Location: Los Angeles, California
29555 Magic Points
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Fri Apr 17, 2009 6:54 am
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If your daughter applies as an independent undergraduate student then as far as I know, she can borrow upto $9500 if she is enrolled in the first year of study. However, for graduate or professional studies, she can borrow upto $20500 each year.
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Carol |
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firefly
Joined: 28 May 2009
firefly's page
Posts: 4
117 Magic Points
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Subject: Arbitration Forum
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Thu May 28, 2009 3:21 am
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Hi Carol,
I did send the arbitration forum a letter stating that the collection agency had violated the Fair Debt Collection Practices Act by not answering my Letter of Debt Validation.
I received 2 letters from the Arbitration Forum, but I don't really understand what do I need to do.
I am attaching the letters.
Thanks in advance,
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| I don't know if I need to do anything with this form. |
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| I never received a letter from the collection agency even if the forum says the do have it. |
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| This is the letter that I sent. |
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firefly
Joined: 28 May 2009
firefly's page
Posts: 4
117 Magic Points
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Subject: Arbitration Forum
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Thu May 28, 2009 3:29 am
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And this is the second letter, they both came at the same day though...
Thanks again.
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