Expert: Creditwrench - 6/22/2008

Question
QUESTION: I live in the State of Georgia. I was served a summons 5/8/2008 by a law firm for Capital One and I was given 30 days to answer the summons.  In the summons, it says that the principal and interest are past due and the defendant refuses to pay. It is not that I have refused to pay.  When I tried to verbally make payment arrangements, they want more than I am able to pay. I was out of work for about 6 months; therefore, I have other bills that need paying as well. My $1,000 credit limit has gone to with interest and fees to a debt they say that I owe of $1,864.47 as principal , $84.95 as interest plus attorneys fees of 15 of the first $500 and 10 of the remaining unpaid principal and interest or $219.94. I have 2 other capital one accounts that are not in default and are still open and monthly payments are being made because the minimum monthly payment was not that much and my wife was able to help me.  Does this in anyway help with my case in filing an answer that I have 2 other Capital One accounts that are not in default? How do I file an answer without having my wages garnished or my bank account seized which is a joint account with my wife?  I tried to make arrangements with the lawyers office since the summons and they are still wanting more than I can afford to pay? What do you suggest.  Please help!!!

ANSWER: Having the other two accounts in good standing will not help you in any way and if you even mention them Cap1 might decide to call those two on you as well so I would strongly advise against your even mentioning the fact that you have them. Also, they do not care what you can afford to pay.

You need to respond to the complaint in writing filed with the court. I would suggest that you use a graduated denial.

Bill Bauer
405-684-9297
405-227-9423

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QUESTION: Thank you for your response. What is a graduated denial?

ANSWER: A graduated denial is a special type of response designed to force the Plaintiff to prove it's claim if it can.



---------- FOLLOW-UP ----------

QUESTION: I filed the graduated denial answer as a response to the summons within the alloted timeframe.  Today, I received a notice of referral to mediation in Pursuant to the Alternative Dispute Resolution of the Superior Court.  According to the letter, I have 10 days to agree upon a mediator, date,time and place of mediation. If I don't notify them in ten days the ADR Office will appoint a mediator, date and time for me.  I was also told where I could find a list of mediators.  Should I let them appoint a mediator for me or go through the list?  It also states that each party should pay their portion of the mediation at the time mediation.  I don't have the money for this.  It has that an Indigent Fee Waiver Request Form be filed if a party feels like he can't pay for the mediation.  What are you thoughts and suggestions regarding the mediation and filing for the fee waiver?  

Thanks for your time.

Answer
Do not agree to mediation in any way because it denies you your basic protections that you would receive in a trial before a judge. You can't use interrogatories, admissions or demand for production of documents and other protections you have in hearings before a judge. Just tell them that you reject mediation and refuse to participate. Tell them you demand a full hearing before a court of law.