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Complaint served by Asset Acceptance, LLC

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dharkheart

Junior Member
I live in Michigan.

This past Sunday, I was served a Summons and Complaint filed by Asset Acceptance, LLC., who "bought" the alleged amount owed from Providian (it showed no open date or last payment date from Providian, just the entry from Asset Acceptance.). I checked my credit report and it shows that the the account was opened 06/2004 under Asset Acceptance, not Providian, who was shown only as the original debt.

This is the 'Verified Complaint Account Stated':

1 - That the defendant resides within this court's venue and venue is proper in this court.

2- That the amount in controversy is within this court's jurisdiction.

3- That the Defendant(s) had an agreement for a credit card, originally with Providian bank,

4- That the Defendant(s) have defaulted in payments on the above mentioned account, said account being shown in the attached, marked Exhibit "A" and made part hereof by reference.

5- That the Plaintiff purchased the account shown in Exhibit "A" and was assigned all rights to the account in the normal course of business.

6-That the Plaintiff has made demand but the Defendant(s) refused to pay and continues to refuse to pay.

7- That there is presently due and owing over and above all legal counter-claims the sum of $2125.50

8- That the Plaintiff requests judgment for the $2125.50 plus interest, cost and attorney fees.

Their Exhibit "A" is an affidavit of account signed by their Legal Manager and notarized.


I have a couple questions:

First, I have never done any business with Asset Acceptance nor signed any contract, etc., with them. Their "exhibit "A" is simply a notarized statement from one of their employees that says I owe them the money.

Second, if Providian charged off the debt, is there legally any basis fro trying to get money for a thing already done, i.e., Providian would have written off the bad debt and taken the tax break, so how can Asset claim to "own" the debt?

Third, for how much did they buy the alleged debt? And wouldn't I only be liable for that?

I'm stumped as to how to file an answer, as I have found I need to do, and through searching I found that there are several things I should do,e.g., discovery, answer, motion to dismiss because its a frivolous lawsuit, and so on.

I have found no clearly worded information as to how I would go about doing any of that, including where and what forms to get and how and where to file them; number of copies, how served, etc.

Can someone help me, please? Thank you very much in advance to anyone who takes the time to respond.
 


Happy Trails

Senior Member
I live in Michigan.

This past Sunday, I was served a Summons and Complaint filed by Asset Acceptance, LLC., who "bought" the alleged amount owed from Providian (it showed no open date or last payment date from Providian, just the entry from Asset Acceptance.). I checked my credit report and it shows that the the account was opened 06/2004 under Asset Acceptance, not Providian, who was shown only as the original debt.

This is the 'Verified Complaint Account Stated':

1 - That the defendant resides within this court's venue and venue is proper in this court.

2- That the amount in controversy is within this court's jurisdiction.

3- That the Defendant(s) had an agreement for a credit card, originally with Providian bank,

4- That the Defendant(s) have defaulted in payments on the above mentioned account, said account being shown in the attached, marked Exhibit "A" and made part hereof by reference.

5- That the Plaintiff purchased the account shown in Exhibit "A" and was assigned all rights to the account in the normal course of business.

6-That the Plaintiff has made demand but the Defendant(s) refused to pay and continues to refuse to pay.

7- That there is presently due and owing over and above all legal counter-claims the sum of $2125.50

8- That the Plaintiff requests judgment for the $2125.50 plus interest, cost and attorney fees.

Their Exhibit "A" is an affidavit of account signed by their Legal Manager and notarized.


I have a couple questions:

First, I have never done any business with Asset Acceptance nor signed any contract, etc., with them. Their "exhibit "A" is simply a notarized statement from one of their employees that says I owe them the money.

**You didn't need to do business with the collection agency. They bought the debt from the company you owed it to or they are trying to collect for someone that purchased the debt.

Second, if Providian charged off the debt, is there legally any basis fro trying to get money for a thing already done, i.e., Providian would have written off the bad debt and taken the tax break, so how can Asset claim to "own" the debt?

**See above answer. Also, just because someone bought the debt and charged it off, does not get you off the hook for owing it.

Third, for how much did they buy the alleged debt? And wouldn't I only be liable for that?

**Doesn't matter how much they bought it for (though it was cheap). No, you would not only be liable for the amount they purchased it for; that is how the collection agency makes money.

I'm stumped as to how to file an answer, as I have found I need to do, and through searching I found that there are several things I should do,e.g., discovery, answer, motion to dismiss because its a frivolous lawsuit, and so on.

**What makes you believe it is a frivolous lawsuit?

I have found no clearly worded information as to how I would go about doing any of that, including where and what forms to get and how and where to file them; number of copies, how served, etc.

Can someone help me, please? Thank you very much in advance to anyone who takes the time to respond.
You can find some sample forms here: http://www.creditinfocenter.com/forms/
 

dcatz

Senior Member
You were probably better served by having this in Debt Collections but, since you were directed back here and I post in both:

First, I have never done any business with Asset Acceptance nor signed any contract, etc., with them.

Not exactly a question, but Asset Accept is a CA and debt buyer. Presumably, they now have the right to seek recovery. Unless you have an absolute defense, such as the Statute of Limitations (SOL), you deal with them. The extent of their rights and yours is something that you will have to determine by way of discovery.

how can Asset claim to "own" the debt?

Charge-off is simply an accounting conceit that is separate from the legal right to recover on the debt. Asset Acceptance both had the debt assigned to them and are acting on behalf of Providian (with the legal rights incident to that status) or they have purchased the debt outright. With Asset Acceptance, the latter is very possible.

Third, for how much did they buy the alleged debt? And wouldn't I only be liable for that?

Irrelevant and no. For some reason, that idea is broadly-held but wrong. Don’t be misguided and think it a defense.

I'm stumped as to how to file an answer

I haven’t found a form Answer for Michigan. Here is a sample from another state but, formatted as the Complaint was, it should work in any state. You admit what is true (eg. your name), deny what is false, and “deny for lack of information or belief” the things that aren’t certain for you. If you admit the debt, you can stop right there; they’ll just take judgment. An even better way to approach this is to spend some time in a law library with a “form book”.
http://www.lectlaw.com/forms/f016.htm

I have found no clearly worded information as to how I would go about doing any of that

Short of using a law library or seeing if a local law school or Bar Association provides pro bono (free) assistance, the best sites that I know of for discovery, motions and just getting a feel for the process are provided by Illinois, including SIU law library. Follow the same approach and make them your own:
http://www.illinoisprobono.org/index.cfm

http://www.illinoislegalaid.org/

http://www.law.siu.edu/selfhelp/info/court/packets.htm

You’ll have to do some looking at pro bono and legal aid, but it’s there.
 

dcatz

Senior Member
I'd disagree with sending a letter to validate the debt. "Validation" offers very little that you now need (use the "search" function if you think otherwise), but you are guaranteed to waste time that you don't have.

You've been sued. Gathering evidence is the purpose of the discovery process - use it. Even if you thought you knew to whom to send the letter (and it's not the attorney who filed against you), you won't get a fraction of what you need, if you get anything at all. Post-suit, those bets are off.
 

dharkheart

Junior Member
You were probably better served by having this in Debt Collections but, since you were directed back here and I post in both:

First, I have never done any business with Asset Acceptance nor signed any contract, etc., with them.

Not exactly a question, but Asset Accept is a CA and debt buyer. Presumably, they now have the right to seek recovery. Unless you have an absolute defense, such as the Statute of Limitations (SOL), you deal with them. The extent of their rights and yours is something that you will have to determine by way of discovery.

how can Asset claim to "own" the debt?

Charge-off is simply an accounting conceit that is separate from the legal right to recover on the debt. Asset Acceptance both had the debt assigned to them and are acting on behalf of Providian (with the legal rights incident to that status) or they have purchased the debt outright. With Asset Acceptance, the latter is very possible.

Third, for how much did they buy the alleged debt? And wouldn't I only be liable for that?

Irrelevant and no. For some reason, that idea is broadly-held but wrong. Don’t be misguided and think it a defense.

I'm stumped as to how to file an answer

I haven’t found a form Answer for Michigan. Here is a sample from another state but, formatted as the Complaint was, it should work in any state. You admit what is true (eg. your name), deny what is false, and “deny for lack of information or belief” the things that aren’t certain for you. If you admit the debt, you can stop right there; they’ll just take judgment. An even better way to approach this is to spend some time in a law library with a “form book”.
http://www.lectlaw.com/forms/f016.htm

I have found no clearly worded information as to how I would go about doing any of that

Short of using a law library or seeing if a local law school or Bar Association provides pro bono (free) assistance, the best sites that I know of for discovery, motions and just getting a feel for the process are provided by Illinois, including SIU law library. Follow the same approach and make them your own:
http://www.illinoisprobono.org/index.cfm

http://www.illinoislegalaid.org/

http://www.law.siu.edu/selfhelp/info/court/packets.htm

You’ll have to do some looking at pro bono and legal aid, but it’s there.

Thank you.
 

dharkheart

Junior Member
Let's start with the basic question: Did you have an account with Providian that you failed to pay in full?
I certainly don't recall one. Even if one had existed, it would have been prior to 2003 ( as I was married in 2004 and I took care of everything financial-wise before being married ) so the SOL would be in effect, right?

That's what spawned my question about Providian and charging off a debt: Asset claims the open date as being 06/2004.
 

dcatz

Senior Member
The Michigan SOL on open accounts and contracts is 6 years.

At the risk of redundancy, you're going to have to file an Answer and do appropriate discovery.

Asset Acceptance doesn't have the best reputation about old debt, but there is nothing in your post yet to indicate that this is time-barred. Do discovery and maybe there will be.
 

dharkheart

Junior Member
The Michigan SOL on open accounts and contracts is 6 years.

At the risk of redundancy, you're going to have to file an Answer and do appropriate discovery.

Asset Acceptance doesn't have the best reputation about old debt, but there is nothing in your post yet to indicate that this is time-barred. Do discovery and maybe there will be.
I have drafted an answer but I'm not certain about its form. I answered the numbered paragraphs with either an "admit, deny, or lack sufficient information to answer this paragraph" response. Then for affirmative defenses, I listed a few, including the SOL with prayers for relief.

How do I request discovery?
 

dcatz

Senior Member
Not exactly sure how to answer the question or what the question means.

“Discovery” in broad terms pertains to various means used to develop evidence: Interrogatories, Requests for Admissions, Requests for Production of Documents (and/or Inspection (of Places/Things)), Depositions and even the service of Subpoenas.

Discovery requests are, primarily, served in written form on the opposing attorney (‘tho subpoenas can be directed to third parties without involvement of counsel).

This isn’t the place for a longer, more detailed discussion until you’ve done some homework. I suspect, at the very least, you’ll want production of all documents related to the billing – credit card application, statements underlying the charges etc. – to determine if it’s time-barred and the amount is correct.

Plaintiff has the burden of proof, so you want to know that they can prove the charges are correct and that suit is timely. If they can’t, you can prevail. If they can, it may be time to try to negotiate a settlement.

We’re skimming the surface here. Nobody can cover Civil Procedure in 5-6 short posts online. I have to suggest that you either do some homework and post further or, if that’s too time-consuming, that you discuss settlement now. However, if you do the latter, you may or may not be paying a debt that is not correct or is no longer enforceable.

If it is your debt and it was but no longer is enforceable, it’s still your debt. You can prevail in the litigation, but Asset Acceptance or someone else can continue collection efforts short of litigation, and it can stay on your credit report longer than your state permits litigated enforcement.
 

dcatz

Senior Member
Ok, you’ve drafted an Answer but are concerned about form. So long as you didn’t make any admissions that would allow them to take summary judgment, don’t be. I’ve previously referred to the Complaint and the Answer as the “bow and curtsy” that gets the dance going. Think of both in that light, unless they try to strike your Answer or make a motion for S/J. Then, you know you’ve made a mistake. Until then, judges are inclined to be lenient with pro pers/ pro ses and, at worst, are likely to give you a chance to amend.

In terms of discovery, Requests for Production are very much tailored to the specifics of the individual case. It’s hard to provide a generic sample. However, a former member, with a screen name of GulfBreeze, was dealing with a problem similar to yours and once posted his Production Demand on this site.

I’ve searched it for you. GulfBreeze is gone (deservedly) and the Request is not optimum but, to give credit where due, is probably as close to a template and starting point as you’ll find here or elsewhere. It’s in this thread:
https://forum.freeadvice.com/showthread.php?t=375435&highlight=Production&page=3

Use it, modify it, learn from it or whatever works. Serve the end product on the attorney by mail (learn the proper way to serve documents or you won’t get a response and the court will give them a “get out of jail free” card, when you try to compel responses). My advice would be to start discovery before they do, which should be concurrently with or immediately after you file and serve an Answer.
 

dharkheart

Junior Member
Ok, you’ve drafted an Answer but are concerned about form. So long as you didn’t make any admissions that would allow them to take summary judgment, don’t be. I’ve previously referred to the Complaint and the Answer as the “bow and curtsy” that gets the dance going. Think of both in that light, unless they try to strike your Answer or make a motion for S/J. Then, you know you’ve made a mistake. Until then, judges are inclined to be lenient with pro pers/ pro ses and, at worst, are likely to give you a chance to amend.

In terms of discovery, Requests for Production are very much tailored to the specifics of the individual case. It’s hard to provide a generic sample. However, a former member, with a screen name of GulfBreeze, was dealing with a problem similar to yours and once posted his Production Demand on this site.

I’ve searched it for you. GulfBreeze is gone (deservedly) and the Request is not optimum but, to give credit where due, is probably as close to a template and starting point as you’ll find here or elsewhere. It’s in this thread:
https://forum.freeadvice.com/showthread.php?t=375435&highlight=Production&page=3

Use it, modify it, learn from it or whatever works. Serve the end product on the attorney by mail (learn the proper way to serve documents or you won’t get a response and the court will give them a “get out of jail free” card, when you try to compel responses). My advice would be to start discovery before they do, which should be concurrently with or immediately after you file and serve an Answer.
Thank you, I'll check that site out. Here's what I have so far:

Answer to Complaint:

In response to the summons I received dated December 3, 2007 case # XXXXXXX

1 – Admit

2 – Admit

3 – Deny

4 – Deny

5 - Lack sufficient information to answer this paragraph.

6 – Deny

7 – Deny

8 - This paragraph contains a legal conclusion and does not require an answer.'

Affirmative Defenses:

1 - The debt claimed is beyond the statute of limitations for such actions. I pray for dismissal with prejudice.

2 - Laches: the Plaintiff has waited too long to bring this action and the existence and integrity of documentary evidence is in question and the identity and memory of material witnesses is questionable. I pray for dismissal with prejudice.

3 - I hereby deny the claim by Asset Acceptance, LLC. I have never heard of or done business with Asset Acceptance, LLC prior to this lawsuit being filed, and have never signed a contract with Asset Acceptance for anything; exhibit “A” is merely a form signed by an employee of Asset Acceptance, LLC alleging I owe them money. Asset Acceptance, LLC has not engaged in any collections activity prior to filing this lawsuit, and due to that fact, I declare this lawsuit frivolous, and request that it be dismissed as such immediately with prejudice.

4 – The debt Plaintiff claimed owed to Providian would have been charged off and written off taxes, therefore there would be no existence of a debt owed to Providian. Asset Acceptance, LLC has filed a frivolous claim for which there is no remedy, and as such, I pray this claim be dismissed as such immediately with prejudice.

5 - Since I have never entered into any agreement, or contract, with Asset acceptance, LLC at anytime, their representation that I have a contract or agreement with them and owe them any amount, and reported as such on my credit report by falsely entering a date for the debt they claim, is in clear violation under § 602 of the Act, (15 U.S.C. § 1681), “a consumer may seek a maximum of $1000 in statutory damages, plus actual damages, punitive damages and reasonable attorney's fees and costs for willful noncompliance with the Act. Any consumer may file suit in state or federal court to enforce the Act.” I pray this claim be dismissed as such immediately with prejudice.

6 – Asset Acceptance, LLC are not creditors and have lost nothing and have therefore filed a frivolous claim. I pray this claim be dismissed as such immediately with prejudice.
 

dcatz

Senior Member
Nobody knows or needs to know to what you’re responding.

For me, it follows that it is neither possible nor appropriate to comment on your Answer, other than to thank you for posting.

The only observation that I’d make is that you may wish to include a prayer for costs, particularly if you can and later do decide to retain counsel.

I hope that you will still do that additional homework, and I wish you success in your litigation.
 

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