A few weeks ago, I received a letter and was served at my door by Portfolio Recovery, which is suing me for $1,700 over a Venmo card. I used SoloSuite to file my response.
Yesterday, I got a letter from the court stating “NOTICE OF ARBITRATION REFERRAL.”
The letter says, “This matter has been transferred to Arbitration pursuant to USCA §1301 and Part 28 of the Rules of the Chief Judge. You will be notified by the Commissioner of Arbitration about the specific date, time, and location of the hearing.”
I understand I don’t have to take any action right now, but can someone explain what this means? I didn’t request arbitration, and I thought debt collectors generally avoid it.
Did I make a mistake, or is this a normal process?
I don’t know what state you’re in, so I can’t say whether this is typical or not. Furthermore, it is unimportant. Find out when and where the hearing is held by getting in touch with the Commissioner of Arbitration; the documents you received should explain how to do this. Follow it to the hearing.
I apologize; I’m in New York. All it says on the paper I got is that it’s been transferred to arbitration and I’ll get a letter telling me where to go and when. I was just curious because it seems like debt collectors dislike having their cases go to arbitration in every search I performed.
Generalizations are just that broad statements. Additionally, a lot of the information you find online about debt collections and collection agencies is typically shared by frustrated debtors, not by industry professionals. Much of what I’ve seen online about collections is simply inaccurate.
Regarding arbitration, collection agencies might be fine with it if they believe they have a strong case. They might also be required to pursue arbitration based on state laws. Contrary to popular belief, collection agencies can’t act however they want; they must adhere to numerous regulations.
What entries did you make in your answer? Did you include a request for arbitration? If that’s the case, you may have put yourself in danger because they’ll be pursuing debt owed in addition to arbitration charges, court costs, and legal fees. The best course of action is to settle with the lawyer.
No, I didn’t ask for arbitration. I recently denied everything in a court answer that I filed. That was a few weeks ago. And I only received the letter for arbitration last week. This relates to a credit card for Venmo. I’m genuinely more interested in this. I am impervious to criticism. Not by any cunning, not by any cheating, nothing at all. I really don’t own any money or bank accounts. I’m only not homeless right now because of my family’s generosity.
That isn’t impenetrable. You are still subject to criticism. It’s a another matter entirely if they can collect. Their employment income will enable them to make ends meet even in the absence of a bank account. To pay off the debt, your employer will be required to withhold a portion of your pay from you. They would find it more difficult to collect if you worked for yourself or relied solely on protected money.
I’m disabled, thus I’m not working. I have no money and no assets at all. However, you are right. They have the ability to file a judgment against me.
Blood cannot be drawn from a stone.
As said earlier, safeguarded income. You are in a strong negotiation position. They will accept almost any settlement that is offered to them. They probably paid one to three cents for every dollar they spent on the account. They might take it to break even if you give them 5–10 cents on the overall dollar amount. likely require a copy of your VA or Social Security disability letter.