Debt Buyer's Credit Card Lawsuit Dismissed
Midland Funding LLC v. K.L. - County Court, Suffolk County
In this case, a debt buyer brought a motion for summary judgment against a our client, a consumer debtor. We investigated the allegations made by the creditor and realized that the card member agreement contained a private arbitration provision.
We successfully argued that the arbitration provision was so broad, that it included even the debt collection lawsuit, and that the agreement required the lawsuit's dismissal and the matter proceed to private arbitration.
After seeing that the filing fee for private arbitration was $1,500; the creditor decided to release the $3,400 debt.
Representation in this case was made possible by the firm's use of an alternative fee agreement.
Practice area(s): Bankruptcy / Debt, Civil Litigation