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How to Beat Arrow Financial Services in Court

Chloe Meltzer | January 10, 2024

Summary: Are you being sued by Arrow Financial Services? Find out who they are and how to win against them in court.

For anyone dealing with debt, it is not something to take lightly. Whether the bills are piling up or you are being sued for a specific debt, you may be contacted by Arrow Financial Services. In this case, you have rights, and you should know them.

Arrow Financial Corporation is a multi-bank holding company and debt collection agency with $3 billion in assets. It is based out of New York and has been accused of violating parts of the Fair Debt Collection Practices Act. The FDCPA protects you from debt collectors that use unfair, abusive, or deceptive treatment.

If you have received a summons for a debt lawsuit, do not panic. Millions of Americans suffer from debt in the United States and there are steps you can take to rectify the situation. In some cases, you may not even owe the debt, or you may have already paid it off. Regardless, you will need to respond to the lawsuit.

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Step 1: Respond to the Lawsuit

The number one mistake that consumers make after being sued for debt is not responding to the notice of debt. This notice comes in the form of a letter as a summons. If you do owe the debt but cannot pay it, then you might throw the letter away. This is not what you want to do. Instead, you must respond.

If you fail to respond to the debt claim, then you are at risk of a default judgment. This is something that is obtained against you for not responding. This will allow Arrow Financial Services to take money directly from your bank account, or garnish your wages. This varies based on the state you are being sued in, but the debt collector may also be able to add in attorney's fees, court costs, or interest to the balance.

Once the collection agency or creditor files a lawsuit, it is then on record with the courts. This means you need to formally respond via a letter in certified mail. This is called an Answer. It is essential that you do not admit liability for the debt but instead force them to prove that you are responsible. Then you need to file your answer with the Clerk of Court, and send a certified stamped copy to Arrow Financial Services. Typically this needs to be done anywhere from 20 to 30 days from the date on the notice.

Step 2: Challenge the Legal Right to Sue

When you are being sued for debt the best way to respond to a debt lawsuit is to challenge the right to sue. This is because at this point, once the debt has reached the hands of Arrow Financial Services it will have passed through multiple other entities. Whoever owns the debt must show that they legally have the right to sue you. If they cannot do this, they cannot legally sue you for the debt.

If you do not respond you will not have the chance to settle the debt or ask for proof. If you do respond, then you can ask for the following proof:

  • Credit agreement signed by you
  • Chain of custody of all paperwork that shows the origination of the debt from the original creditor

Step 3: Push Back on Burden of Proof

When you get served for a debt the entity suing you will be required to prove that you are responsible for the debt, and also that they have the legal right to sue you. This will include showing you owe a specific amount. This can be done by showing the balance increased when you made purchases, or that it was increased by fees you agreed to originally. If they cannot do this, then you may be able to have the lawsuit dropped.

Use SoloSuit to respond to creditors and win in court.

Step 4: Examine the Statute of Limitations

The statutes of limitations are laws that state how long a creditor may sue you for debt. The rules that govern the statute will vary from state to state. In some states, the statute of limitations is three to six years, while in New York it is 20 years. It is important to note that the period of the statute will begin on the last day you made any type of activity on the account. Activity includes something as simple as making a payment or using a credit card attached to a debt account.

Step 6: File a Countersuit

In some cases, a debt collector may have violated the Fair Debt Collection Practices Act (FDCPA). The FDCPA is a set of laws that debt collectors must adhere to. They essentially protect you from harassment, and debt collectors calling you at odd hours or mentioning your debt to your family and friends. If a debt collector violates the FDCPA then you may be able to file a countersuit and seek compensation for damages.

The Final Straw: Filing a Petition of Bankruptcy

When you owe a debt that you know you cannot pay back, the last resort is to file bankruptcy. Although this is not always the best option, if you are also dealing with other financial issues, then it may be a good option to help you get out of a hole. When you file for bankruptcy, all collection acts must cease. This can buy you some time, or get rid of your debt altogether.

Responding to a debt lawsuit is not always simple, and knowing your right will make it a lot easier. Whatever decision you make regarding your debt collection lawsuit, be aware that your financial accounts will follow you for the right of your life. Getting ahold of them now can greatly improve your chances of being out of debt in the future. Regardless of what you decide, be sure to respond to the debt lawsuit, and always force Arrow Financial Services to prove your debt.

What is SoloSuit?

SoloSuit makes it easy to respond to a debt collection lawsuit.

How it works: SoloSuit is a step-by-step web app that asks you all the necessary questions to complete your answer. Upon completion, you can either print the completed forms and mail in the hard copies to the courts or you can pay SoloSuit to file it for you and to have an attorney review the document.

Respond with SoloSuit

"First time getting sued by a debt collector and I was searching all over YouTube and ran across SoloSuit, so I decided to buy their services with their attorney reviewed documentation which cost extra but it was well worth it! SoloSuit sent the documentation to the parties and to the court which saved me time from having to go to court and in a few weeks the case got dismissed!" – James

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>>Read the FastCompany article: Debt Lawsuits Are Complicated: This Website Makes Them Simpler To Navigate

>>Read the NPR story on SoloSuit: A Student Solution To Give Utah Debtors A Fighting Chance

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