Sued by AMEX, Bank of America or Capital One? WATCH THIS (2022)

TL;DR

Learn strategies for dealing with lawsuits brought by original creditors, including compelling private arbitration, litigating the case with specific defenses, negotiating a settlement, or considering bankruptcy as a last resort.

Transcript

hey everybody John skiba here from the consumer Warrior YouTube channel and in this video today I'm going to talk about something a little bit different we talk a lot about how to defend induction lawsuits on this channel but usually we're talking about how to defend lawsuits that are brought by junk debt buyers like Midland funding Portfolio Recov... Read More

Key Insights

• 📜 Original creditor lawsuits differ from those brought by junk debt buyers due to the availability of witnesses and documents.
• ❓ Strategies used for defending against junk debt buyer lawsuits may not be as effective against original creditors.
• 🧑‍🏭 Compelling private arbitration and litigating with fact-specific defenses are potential strategies for resolving original creditor lawsuits.
• ✋ Settling with an original creditor may require higher payment amounts than settlements with junk debt buyers.
• 🌱 Payment plans may involve stipulated judgments to protect against collections.
• ❓ Bankruptcy can be an option to eliminate original creditor debts completely.
• 🤝 Seeking legal advice is crucial when dealing with original creditor lawsuits.

Questions & Answers

Q: What is the main difference between lawsuits brought by junk debt buyers and original creditors?

With original creditors, they usually have access to witnesses and documents, making it harder to use defenses focused on lack of evidence.

Q: How can compelling private arbitration help in an original creditor lawsuit?

By invoking the arbitration clause in their contract, you can move the case out of the court system, forcing the creditor to deal with the arbitration process, which they may be more inclined to settle or dismiss.

Q: What types of defenses are fact-specific and useful in litigating an original creditor case?

Defenses like identity theft, disputed charges, or failure to provide specific services can be raised in litigation against the original creditor.

Q: Is it possible to negotiate a settlement with an original creditor and what factors should be considered?

Yes, but it is likely they will want a higher settlement amount compared to junk debt buyers. Payment plans may be an option, but a stipulated judgment might be required to protect against garnishments or bank levies if payments are not made as agreed.

Q: When should bankruptcy be considered as an option in dealing with original creditor lawsuits?

Bankruptcy can be a way to eliminate the debt completely, including the judgment and lawsuit, if settling or payment plans are not feasible.

Summary & Key Takeaways

• Credit card companies usually sell their debts to junk debt buyers, but some, like American Express or Discover Bank, file lawsuits themselves.

• Strategies used for defending against junk debt buyer lawsuits may not be as effective with original creditor lawsuits due to the availability of witnesses and documents.

• When dealing with original creditor cases, you can consider compelling private arbitration, litigating the case with fact-specific defenses, negotiating a settlement, or exploring bankruptcy as options.