Can a credit card company have a debt collector take you to court?

Question

I have a outstanding CC and I got a thing in the mail from Maryland and some law firm that says its an arbitration that says I have 30 days to respond or they will go to court without me. That they may put a judgement against me as a civial judgement. I don't work, I don't own anything. What does that mean?

Answer 1

PLAYING THE CREDIT GAME
If you live in the U.S., whatever you do, DON'T PAY THESE BILLS OFF WITHOUT FIRST READING WHAT I WROTE BELOW!!!

HOW BILL COLLECTORS WORK
When you have bad debt that goes into collections (after being late/unpaid for 180 days), these debts are sold off to bill collectors (essentially, scum bags run by the mafia). The original bank or creditor is no longer collecting it. Instead, it gets auctioned off to scum bags who buy it for pennies on the dollar. What they do is they turn around and try to scam you for the full value of the original debt PLUS interest and penalties, which can almost double or triple the original balance.

DON'T NEGOTIATE WITH TERRORISTS OR SCUM BAGS
Whatever you do, don't negotiate with so called "non-profit" credit counseling agencies! They're in bed with debt collectors, and are run by scum bags and mafia! I'm not kidding. I'm dead serious. They're run by the same people as the debt collectors!!! And they charge ridiculous fees, a certain percentage of your balance. Non-profit my fat buttocks!

THE (EMPTY) IMPLICATION OF LAWSUITS
It's important to be aware that debt collectors often hire lawyers to write letters on their stationary to make debt collection notices sound more "official" and use the empty threat or implication of a lawsuit to scare you into paying them what I consider ridiculous financial rape. To understand better, read more below. Regardless, the law requires them to identify themselves as a "debt collector". So if you've received any letters from so-called lawyers go back, go back and re-read the letter and you'll see that somewhere in small print, it'll identify the letter as an attempt to collect debt! NO WORRIES! Treat these bastards as you would any other debt collector and ignore the legal stationary. In most cases, lawsuits are rare and never happen. The costs of litigation are too high to sue for every collection case.

It's funny, too. If you have one of these so-called letters from lawyers, notice that they don't explicitly say they're going to sue you. That's because by law, they can't say they're going to sue you unless they actually plan on following through! So, all in all, it's just a ruse to scare you.

So unless you've got lots of assets, don't worry! Sleep well, eat will, and live long and propser!

TELL THE SCUM BAGS TO SUCK IT!
Send a cease-and-decist letter to the bill collectors, which basically tells them to shove it. This is mentioned in section 805c of the "THE FAIR DEBT COLLECTION PRACTICES ACT".

Here's an excerpt:


----------------- except from FDCACT Section 805c -----------------

"(c) CEASING COMMUNICATION. If a consumer notifies a debt collector in writing that the consumer refuses to pay a debt or that the consumer wishes the debt collector to cease further communication with the consumer, the debt collector shall not communicate further with the consumer with respect to such debt, except --

(1) to advise the consumer that the debt collector's further efforts are being terminated;

(2) to notify the consumer that the debt collector or creditor may invoke specified remedies which are ordinarily invoked by such debt collector or creditor; or

(3) where applicable, to notify the consumer that the debt collector or creditor intends to invoke a specified remedy.

If such notice from the consumer is made by mail, notification shall be complete upon receipt."

----------------- except from FDCACT Section 805c -----------------


By law, the debt collect must return the debt as unpaid/uncollected to the original bank/creditor and destroy your records, or they can take legal procedings against you. They are allowed to contact you in writing ONE LAST TIME to inform you of their actions (ie. if they are suing you, if they're returning the debt to the collector, if they're going to run off and cry to their mommy, etc.). Unless you've got valuable assets, the most they'll do is probably terminate the collection.

If you don't know how to write a cease-and-decist letter, there's plenty of websites that will provide templates for cease-and-decist letters.

NOTE: This does NOT apply to the original creditor, only debt collectors. Legally, you will still owe the original creditor!

REMOVING THE NEGATIVE ENTRIES
After a little over 1 month of sending the cease-and-decist letter, contact each credit bureau where you have these negative entries and request to have these debts verified/validated. The credit bureau will then contact the collector and the collector will be unable to locate your records (per having destroyed your records after the cease-and-decist letter). After 30 days, if the debt collector cannot prove you owe them this balance, the credit bureau will automatically remove that entry.

Once the entry has been removed, contact the original bank/creditor IN WRITING and arrange to make FULL payments in return for a "paid as agreed" entry on your credit report, OR simply removing the account from your credit report altogether. Make sure you get this agreement from them in writing before sending even a dime to them!

THAT'S TOO MUCH WORK, I JUST WANT TO PAY IT OFF
If you don't want to deal with all the steps above, simply contact the creditor/collector IN WRITING and get them to agree to mark the entry as "paid as agreed" or remove the negative entry from your report in return for full or settled payment. Make sure you get this in writing!

CREDIT REPORTING AND THE 7 YEAR CLOCK
As for your credit, it takes 7 years from the date the account went into collections to fall off your credit report. Don't make any payments or disputes or requests to verify/validate a debt unless you intend to pay it off! You could easily screw yourself over!!! If you make a partial payment or unsuccessfully dispute or verify/validate a debt, it'll reset the 7 year clock.

I'M A LITTLE BASTARD AND REFUSE TO PAY
If you're a little bastard and simple don't want to pay, just wait until the statutes of limitation pass and then you're scott free and they can no longer collect a dime from you. Of course, there's your guilty conscience and the ghost of Christmas past that will haunt you for life!

Also, if you choose to be a bastard and you own any valuable property or have any large amounts of cash stashed in a financial account (such as a house, an expensive car or boat, stock brokers, IRAs, savings, checkings, EXCEPT for 401k's and perhaps 403b's which are protected from creditors), there is a chance the creditor or debt collector could sue you. This really depends on the state where you opened the account.

For a list of statutes of limitation for debt, check out this website:

http://www.bankrate.com/brm/news/cc/20040116b2.asp

ONE LAST TIP
As an additional tip, by law, debt collectors cannot threaten or harass you. This includes neighbors, friends, family, and empty threats of lawsuits or arrests. If they threaten you with a lawsuit, they MUST follow through or else they've just violated your rights! If they do, they're violating your fair credit reporting act rights and you can sue the MOFO's for violation of your rights!

To learn more about your rights under the "THE FAIR DEBT COLLECTION PRACTICES ACT", you can either read the FTC's tip page below:

http://www.ftc.gov/bcp/conline/pubs/credit/fdc.htm

Or check out the Wikipedia entry here:

http://en.wikipedia.org/wiki/Fair_Debt_Collection_Practices_Act

If a bastard debt collector is harassing you or violating any of your rights, file a complaint! Be sure to document every phone conversation, snail mail, or harassment you experience.

https://rn.ftc.gov/pls/dod/wsolcq$.startup?Z_ORG_CODE=PU01

CAN ANYONE TESTIFY TO THIS?
In my own personal experience, I owed over $30k in debt that I couldn't pay off due to being laid off during the dot-com bust. The collectors want over $60k after penalties and interest. I laugh in their face. I haven't paid a dime and I sleep very well at night. I only have 2 more years to go before I have a perfectly clean credit, and 1 more year to go before I'm off scott free (I live in Oregon --- the statutes are 6 years). I guess I took the bastardly approach! But whatever. I don't see the difference between being a bastard and filing for bankruptcy; they're both bastardly!!! Just that a bankruptcy will screw you over longer (10 years instead of 7). Doesn't take a genius to figure out which option is easier.

If you didn't get my subtle hints, I'll spell it out for you. The FDC Act clearly protects you and provisions you with certain unalienable rights. Although I don't out right advocate NOT paying, I do want to highlight that for the average American, between filing bankruptcy and being a bastard, it's much easier and makes more sense to just not pay. In other words, if you're not rich and can't make a settlement to pay off the account, you're probably better off just letting the debt die on its own. Some states, like North Carolina or New Hampshire, have a 3 year statute limit for written contracts. This means after 3 years, you don't owe them a dime except per your conscience.

And as a testiment, even with my bad debt still shadowing my credit, I just bought a new car for 14.9% APR through CitiFinancial. Not bad at all!

Answer 2

Ok, first of all take a deep breath and relax... This will all work out fine.

The Fair Credit Reporting Act requires that anyone looking to collect on a debt must send you in writing what the debt is and how much and all that. Sounds like they already did.

What they did though, was the most common scare tactic used by debt collection agencies. The lawsuit deal.

While it is possible for them to take you to court for the debts you owe (if any, more on this in a moment) they almost NEVER will because the cost of legal fees and court fees aren't worth dealing with.

You see, the lawyers that contacted you bought a debt from a creditor that hasn't been paid. Say it was a $1000. The law firm buys it from the creditor for like $300 and from that point on OWNS the debt. So they're really trying to get as much of that original $1000 out of you that they can as quickly as they can.

Now, if you're not sure the debt is yours OR you just want them to give you the proof (which you should DEFINITELY do) send them a written letter stating that you need the evidence of the debt before you claim ownership of it. The reason this is important is because there are a lot of crooks out there that just find people with the same NAME and try to scare them into getting the money. Terrible thing, isn't it??

Get that letter written and send it to them before you do ANYTHING ELSE. If you'd like an example of what to write in your letter feel free to email me and I'll send you what I've got!

Good luck and most of all: Don't worry!! It'll all work out no matter what the outcome!!

Answer 3

I am assuming that you do not live in Maryland, they are just treating you. I am seeing that you dont work or have any assets they do research that before taking you to court. It is more than likely they are Tryng to scare you with threading tatics. Go and see a lawyer explain your situation, "not a huge law office." They may refer you do someone doing it free. They will send the law firm some letters asking them to validate the debt and they will tell you if they are doing something illegal her and i bet they are. Now they have to file a court date in YOUR jurisdiction, and you will be served with a summons. If the debt is under 3k they are scaring you, if it is more then 5k it could be more serious. It cost them lots of money to sue you. Please get a lawyer involved if it is 2k or so

Answer 4

Yes, they can. And they can get a judgement on you. Really, can't you just do the right thing and arrange to pay the debt collection agency?

Anyway, you might just get a 1099C in the mail from the government. Bad loans are considered income, since you aren't paying the bill.

Answer 5

that means that you will pay when you get anything.....if you owe the money they will sue you and they will get a judgement on you. If you plan to never work, buy a house, a car or get insurance, no worries....but if you think or aspire to be responsible someday, pay it off. contact the company and arrange a payment plan.

Answer 6

If you owe them money, they can take you to court and get a judgment. If you have no income and no assets, they can't collect on the judgment. When you do have an income, the judgment will still be there.

Answer 7

SO WHAT.
THEY CAN'T GET DIDDLE IN MOST STATES.

DON'T MEAN DIDDLE.
TELL TO TAKE YOU TO THE MOON.
YOU DON'T EVEN HAVE TO SHOW UP IN CIVIL COURT.
DON'T LET CREDIT BLUFFS SCARE YOU.

Answer 8

yes they can. you sound screwed. they will most likely doc your pay.