Received a letter from a law firm demanding 3600 for a cc debt?

Question

Hello all,
I recived a letter from a law firm out in NY demanding 3600. I immeditly asked for a good friends advice.. He told me to write a certified letter asking them to validate the debt, this would even get me the signature signing up for the card. I have sent this letter 2nd week in july and no reponse yet and they did sign for it that week. I live in south dakota where the SOL is 6 years, this debt showed it was charge off on may of 2001. Had some credit issues "Marriage gone bad" Anyone else been in this situation, this is the first letter i have recived on this matter.

Answer 1

Dutch Master's answer is the classic example of why you never EVER listen to a collection agent and/or attorney.

Let me give you a tip. Collection attorneys are mostly very new (just got their license....barely). They are not good enough to get into a real law firm...can't open their own practice....can't even work as public defenders unless that county is desperate for lawyers. So they end up working in collections. It's fairly brainless work.

Counsoler...would you please address the research matter listed below and respond as to your lack of knowledge in this, assuming you are an "experienced collection lawyer"?

Note that from my research, many states do not take a simple conversation with a collection agent as a reaffirmation of a debt. It must be in writing, and it must be clearly worded as to show both parties are in agreement.

Even the FDCA asserts this right by saying "The failure of a consumer to dispute the validity of a debt under this section may not be construed by any court as an admission of liability by the consumer." This also applies to disputing the debt too.

Now all this said.....You claim the debt was "charged off" on May, 2001? Generally the don't charge debts off for at least 5-6 months after the delinquency. That puts a guess that the last transaction on this was around Jan 2001.

I wish you have your past receipts to prove this.

So the SOL may expire in a few months. That's why the lawyer is getting antsy now....he knows he is running out of time.

Follow Echo's advice and send them a demand to validate the debt. Specify that you want all contracts, bills, receipts, and everything they used to calculate what they claim you owe.

Good luck

Answer 2

Your friend gave you excellent advice about sending the debt validation letter.

And - as for dutch masters claims that you have extended the SOL, that is bogus info. From his answer, I'm sure that if he works for a law firm (HA), its the law firm that gets sued more than doing the suing.

If the lawyers are working for the original creditor, the original creditor is not bound by the FDCPA and not required to validate. You can request verification from an original creditor and they have to provide it.

If the lawyers are working for a collection agency OR if the lawyers qualify as debt collectors, then they are bound by FDCPA.

What ever you do, "do not" send them a full cease and desist letter. Doing that leaves them with the only choices of either suing or selling the account.

If a collection agency or the lawyer owns the debt (or was assigned it) and that was the first that you have heard from the collection agency (via the lawyer) and you sent your validation letter within the first 30 days, they cannot legally persue it until they properly validate. If they do file suit, you would have them on at least one violation to file a counterclaim on.

When you say that the debt shows charged off in May of 2001 - is that from the original creditors reporting or from the collection agency? ONLY go by what the original creditor shows since collection agencys have a bad habit of re-aging debts on your reports. If it is the original creditor that shows the charge off as May 2001, your starting SOL should be 6 months earlier.

If you are in doubt on the actual date, you are well within your rights to request the credit bureaus to send you the compliance date on the original creditors tradeline. That should be the date that your SOL starts running.
If the original creditor is no longer listed on your reports, you can request the compliance date of the collection agency that is listed.

Also, look over the tradelines that the collection agency (or lawyer) had placed on your reports. Look for any violations. I'm sure they are there. They usually are.

Check out the site I've linked. Do some reading in the newbie forum and then in the credit forum. There is a great deal of information on that site that can help you. Everything on there is free to read and use. Plus there are quite a few people who frequent that site who have been in the same shoes your in now. So if you have any questions after doing some reading, feel free to ask.


P.S. if you are in or ever go to Aberdeen, tell everyone hi from me.

Answer 3

This is a bit old for a collection account. This is happening more frequently now. These collection agencies (including law firms) are buying old debts for cheap.

Your state has a longer statute of limitations than most. If they are serious, you may wish to try a settlement. If not, you may wish to overestimate your financial problems. Lawyers tend not to pursue judgments in cases where there is no more blood to squeeze from a turnip.

Answer 4

First thing did you make sure this was really a Law Firm do you know how many Collection Agencies lie and say they are a Law Firm and aren't. Second you really need to send that letter Certified with a return signature, when doing anything like this you need to CYA at all times to prove you mailed it and they got it.
If they really were a law firm they wouldn't be demanding anything they would file papers against you.

Think about that please.

:)

Answer 5

Just writing to a collector does not mean the debit is confirmed. You legally have the write to dispute the debit if it is not yours. Collection agency hate it when you ask for the Validation of the debit. They can not legally contact you until it is validated. jodi_lynn_124, Stopccdebit, echo, even Studly gave you excellent advice. Do not give me the best answer because echo is the best.

Answer 6

Don't pay anyone any money or even talk to them at all.
They are lying to you. They cannot collect this debt because they are not the original creditors. Only the original creditor can take you to court. Even if this attorney bought your account they still can't sue you. if they say they can then wait until they do it and it shows on your credit report. It will NEVER happen.....good luck

Answer 7

SINCE YOU REPLIED YOU JUST EXTENDED THE SOL FOR ANOTHER 7 YEARS. SHOULD OF GOT AHOLD OF AN ATTORNEY FIRST AND NOW THEY WILL AND CAN GARNISH YOUR WAGES AND PUT LIENS ON EVERYTHING YOU OWN . WE DO IT ALL THE TIME AND THERE IS NO SOL ON THAT INCLUDING DEATH .