Today I had a bench trial (small claims court): sued by PRA for "breach of contract."
I had responded to the complaint by stating since I never had a contract with PRA they had no standing to sue for breach (note, the space available to write a response was tiny). They claimed to have been assigned all rights by HSBC bank.
Before the "trial" the judge allowed the plaintiff's counsel to speak with me to see if we could come to an agreement. The attorney (who was also there representing Midland Funding in another case) spoke to another woman first and that woman left. Then she spoke to me. She told me that in Alabama a signed agreement is not needed. "Not needed for what?" I thought. I told her that I had not seen any documentation of the account and she showed me what she had: a "last statement" from "Household Bank" from Dec 2010. Now, Household was, in fact, acquired by HSBC in 2003, but still . . . a last statement??
She said she'd ask the judge for a continuance so that PRA could get documents to me and at first I was thinking that would be fine (what are the chances they'd be able to even produce any documents proving ownership, contract, chain of assignment etc?) but then I decided I didn't want this dragging out any longer so told the judge I objected to the continuance and that PRA should have been prepared to show evidence since they had sued me.
He swore me in and then allowed opposing counsel to question me. She asked if I had had a household account and I said I believed I had at one point. She showed me the last statement and asked if I had ever received anything like it. I said that if I had possessed a Household account I probably would have received something like it, but could not speak to whether or not what she held in her hand was a last statement I had seen since it over two years old. Nor could I confirm it was mine.
Then the judge asked me if I had anything to say and he didn't seem to think I'd have much to say. I said that Contract was Not Proven - I had never had a contract with PRA and so could not be sued for breach of contract. I said that Account Stated was not proven since I had never entered in to an agreement with PRA. I then stated that Assignment was not proven and that what he held in his hand was a last statment from Household Bank and that the plaintiff claimed to have received assignment from HSBC. I pointed out that I had no evidence that PRA had assignment and would need proof of the chain. I also pointed out that (Damages not Proven) the amount listed on the last statement was well under the amount PRA was asking for so would need to know where they came up with the figure they presented and that also, as a JDB, they had paid mere pennies on the dollar for the account if indeed they could prove they had purchased it and that therefore the figure they were asking for was not proven.
The judge then said he would render a decision later and sent us on our way.
I'm a little annoyed that I didn't get to fully argue my point. The judge was much more interested in me not talking anymore. I'd done all my research! I'd read academic papers by law professors on JDB suits!
On the one hand, I wonder if I should have just allowed the continuance and let PRA hang themselves by not being able to produce it. Maybe they would have just asked for dismissal? On the other hand, I wanted to have my say and I didn't want to have to go back to the courthouse in 60 days!
I can't see how the judge could decide in their favor when all they had was a last statement! Since they sued, they should have had evidence to prove their case. But then, I don't really believe in the system so I won't be at all surprised if he comes back with a judgment against me.
The thing is, this is so much bigger than me and the $2300 PRA was seeking. In 2011, PRA paid 7 cents on the dollar for debt, so at that rate they paid $165 for my debt (if it truly was $2300). These JDB rarely have documentation to prove they own the debt and yet they make millions because most people don't show up in court and default judgments are entered against them! Yet even when someone does show up, the courts aren't interested in seeing evidence. I think the reason they sue in small claims is because typically, rules of evidence don't apply - yet integrity should!
I wanted to share this with others who are in the same position (and rant a little). I'll update when the judge's decision comes in.
I so wanted to rock that courtroom!
UPDATE 7/18 (3 days after trail):
Ruling came in the mail today. I won! "Judgment is found in favor of the Defendant."
Starting Score: 2/2013 EQ 535
Wow! Let us know how it goes...gl
*****Req move to Gen Credit Topics******
UPDATE:
Ruling came in the mail today. I won! "Judgment is found in favor of the Defendant."
I hope this inspires others to show up to their day in court and hold these JDB accountable. Demand the paperwork. Demand to see the chain assignment. Refute their claim that you had a contract with them!
Question: is the burden now on me to contact CRAs and provide proof of judgment in my favor to get the collection removed from my CR?
That is so bad@zz! Congrats!
New goal 675
