Question about collection agency and old debt?

Question

Back in 2000 my dad opened a credit card for me. I am not denying I ran up the balance and fell behind.
The card has been charged off and sold from one collection agency to another. If one of these companies try’s to take him to court, what could happen? Now some background:
He is retired. He is 81 years old. He doesn’t own a dime to his name other than a 1970 mobile home.
He is worried about going to jail because of me. I told him they don’t jail people for debt.
If it goes to court, can I step in and have them garnish my check even though it’s not in my name? Any idea how much they would take a check? The original balance was like $8100, and now with interest etc. they want $12k Plus!
Anyone else had to deal with MRS Associates, INC. They call the house once an hour. Lately they have been getting even nastier stating have our attorney call their office. We simply just don’t answer the phone anymore.
Thanks for your advice.

In the past I have tried to make payment arrangements (with a different collection agency), but they want huge chunks of change. And they want it paid off in one or two payments. I can not do that.
Since they are into the account for pennies on the dollar, should I offer them like 15% of the balance? Would that be expectable? Or just let it run its course. Is this debt too old now? (4 years).

I think some of you are misunderstanding. This credit card was not opened with the intention of fraud. It was paid one time until I fell behind. Once the interest got so far out of control, I couldnt keep up with the payments.
As far as taking out a loan, I can even borrow $100 from the bank hence why my dad opened this card for me.
Its not something I am proud about. I need solutions.

Answer 1

You could attempt to negotiate the balance, that company you are dealing with is probably part of a consortium of lawyers that buy old debts. They're all scumbags.

Please look at the following bankrate link: http://www.bankrate.com/brm/news/cc/20040116b1.asp

Take a look at the statute of limitations for open accounts in your state. The clock on this starts the day of your last payment on the account, so NEVER, EVER send them a dime in "good faith", all that does is reactivate the debt. Hopefully, you're close to being clear of this debt. Click on the Fair debt collections practice link too, and read about your rights.

Next, send them a letter, in writing, certified mail with return receipt (go to your post office for this), demanding that they cease any attempt to reach you by phone, and that you will correspond by mail only. Demand validation of the debt too, while you're at it. Don't mention the statute of limitations unless you're certain you are past it, because you don't want to encourage them to file for a judgment to beat the clock.

And there is no debtor's prison in America, except for the ones people create for themselves by trapping themselves in debt so deep they can't get out.

Keep in mind, if you're past the limitations, they can still make feeble attempts to collect on the debt, but as long as you can keep it by mail only, just use their letters to wipe your behind.

Answer 2

I'm going through something similar. I had a 4 yr old credit card debt come back to bite me. Like you, they wanted a huge chunk or all within one month. Since I couldn't do that and they did not want to work with me I let it slide.

That is until I came home and had a police man knock on my door with a summons. Either I pay them everything or go to court where they will garnish my salary at 25% after taxes!

I got lucky and mom borrowed the money for me. We paid it today actually.

But, the thing is, if it's in your dad's name then HE will be garnished. I don't think he would go to jail over it. But I would consult a lawyer-they always have some that offer free consultations over the phone. Check the yellow pages and get some legal advice NOW.

I know about the phone calls and how they drive you up the wall. Believe me I know how you feel.

Consult a lawyer and go from there. It's better to KNOW what you're dealing with so you can stop worrying about all the possibilities!

I wish you all the best of luck. Ignoring the calls will not make them go away unfortunately. Get legal advice and go from there.
Maybe you could help your dad pay for it each week.

Then there's always bankruptcy...they will file it for you for about $200. I think it stops all calls and actions against you. May be your best bet.
Again, good luck! I know how awful it feel.

Answer 3

First off, the goverment cannot garnish your dad's wages. It is illegal for them to garnish Social Security, and yes i know what im talking about. I work for a finance company in the southeast. now, i know you said that you've talked to other collection agencies in the past, but have you tried talknig to the ones who own the debt now? i know that when we file legal, we do whatever it takes to have the customer pay us back, even if they can only afford 20 bucks a week. i would try and talk to them directly, but if that doesnt work then perhaps bankruptcy is the best choice for your dad. his credit is already ruined, because of this, so it wont hurt him that bad, it does cost a few hundred dollars, but it seems to be worth it in the long run. once hes filed and has a case number, and ya'll have notified the collection agency that he is filing then they cannot contact you about the debt again, unless they dont recieve the payback check (chapter13). if you choose to file chapter 7 (choosing not to pay any debts back) then once they receive the papers from the courts, the debt is a write off. and they cant harrass you anymore. good luck!!

Answer 4

The collection agency cannot do a thing except ruin your father's credit rating - and since he's 81 years old, I don't think that will matter much.

Next time they call - say hello - how can i help you - and hang up.

The collection agency gets a fee from the initial creditor - if you owe 10k and they can get 5k out of you for a few calls - they stand to make about 2.5k - the other 2.5k goes to the original creditor. its just a banks way of freeing up their resources.

Answer 5

As a former Collector let me give you some steps to take.

First Document or record all their calls. Let them know they are being recorded.

Second research the Fair debt collection act. These people are considered third party collector different rules apply to how they are allowed to collect. With a little research you could have them coming to the table to negotiate.

Although 15% sounds low I might start there. and work on a settlement. It is there job to get as much money as possible out of your father. It's your job to let them get worked up and threaten you or your father while you completely keep your cool.

Answer 6

Credit Cards are actually unsecured debt. They couldn't force him to sell/forfeit anything he needs to survive, like a house, car, social security, etc. If I were you, and that is truly all he owns, put up about $600 and pay for your dad file for Ch. 7 bankruptcy. Also, it isn't too old of debt, it usually will be forgiven if no promises of repayment were made and not carried out in 5 years.

Answer 7

Let me tell you what I've been going through. I co-signed a car with a young couple from my church about 2 years ago. Big mistake. It was a struggle just to get them to make one payment on time. Honda was constantly calling me about it. This young couple was completely irresponsible. Finally, about 3 months ago, the oil light came on but they just kept on driving it until the motor locked up. They had it towed to a repair shop and just forgot about it. They quit making payments altogether, and didn't even have the decency to tell me about it. The next thing I know, a repo company is looking for the car. And here's the really bad thing - I can't just take up payments on it, they want the full balance. So, I had to borrow nearly $9000.00 from the bank to pay it off, pay a $400.00 repo fee, then pay $80.00 to have it towed to my house. The young couple is yet to return any of my calls or offer any help or apology. It will cost about $1500.00 to repair the car, then I'll be lucky to sell it for $6000.00. As you can see, I'm going to lose about $5000.00.

Honda told me that if I didn't pay it off, my credit record would be ruined, and they would still take me (us) to court. Of course, it wouldn't do any good to take the couple to court because Honda wouldn't get anything out of them, anyway. And Honda can't legally garnish their wages because I am half-owner. They'd have to garnish mine, too.

So, yes, it can have a very negative effect on your dad and you. Shame on you for being so irresponsible.

Answer 8

In my experience they are all very pushy but when you push back and say this is what I can afford they will take it as a payment so offer them 100 bucks a month and as far as them putting a garnishee on your dad its pretty hard to do, they could put a lean on his trailer but theres no way he would go to jail. and as far as offering them 15 cents on the dollar you could try who knows they might take it.

Answer 9

If they take your dad to court, they can garnish his social security and pension money. They can also force a sale of his mobile home.

Well, ordinarily people don't get sent to jail. But if he took out the card knowing it was really for you to run up and get away with not paying, I think that's considered fraud. Based on his age, they probably wouldn't send him to jail but they could if they wanted to.

Answer 10

Tell them not to call back they have to stop by law, then they will determine if its profitable to sue. I'd be more worried about my soul, if I were you doing this to your 81 yr old father.