I am currently being handeled by a law firm in california to collect debt from a credit card. I live in florida, but I was trying to contactthem in order to "settle" my debts. They said they would only take the amount in full and by not paying it in ful;l I was refusing to do so. I only owe $4,000 but can not pay that in a lump sum, otherwise would have paid credit card. They threatened me saying the attorney and court cost will be much higher, and I should just transfer my balance to a credit card that I have open which I have not used since applying for it in 2002. The interest rate is 17.34% and If I did that it would take me almost 15 years to pay off the $4,000. How sacred of their threats should I be? What should I do?
2007-03-21 10:19:01 · 7 answers · asked by m 3 in Business & Finance ➔ Credit
Their threats are probably just that - threats
Before you even thing about paying them, send them a debt validation letter.
Make sure that the amount of the debt is the true amount and hasn't been illegally inflated, that the collection agency and the law firm has a legal right to collect the debt, that the law firm is actually a law firm, that you are still within the collecting SOL.
Do not send a full cease and desist as that probably will lead to them filing a suit. You can include a limited C&D in your validation request. A limited C&D basically tells them not to call you at your home or place of business since it is inconvenient to you. That all further communication from them must be done by USPS.
Be sure that everything you send is sent certified mail return receipt.
Collection agencies (and the law firm is acting as a collection agency) must be licensed and bonded in Florida.
Check your credit reports to see if the collection agency and/or the law firm is reporting. Check to see if they are reporting accurately (bet they aren't)
If they are not reporting accurately, when you get the green card back from sending your debt validation request, send a dispute to the CRA's and dispute the inaccurate information.
The SOL for collecting in Florida is 4 years - if you are out of the collecting SOL you have a legal right to send them a SOL letter telling them the debt is no longer collectible (and to take a hike)
Florida has some excellent consumer protection statutes - take advantage of them.
You might click on the link I've provided and do some reading.
http://whychat.5u.com/States/state-fl.html
You might also click on my profile and do some reading in the links I have listed - to the FDCPA, FCRA, etc., etc.
2007-03-21 13:01:37 · answer #1 · answered by echo 7 · 0⤊ 0⤋
They must be really terrible. I was in your similiar situation. I had a debt that was being collected by a law firm, but i talked to them and I was able to make 3 payments for the amount owed. I think it was close to what you owe. I was coming into some money that is why i only made three paymts., but they were willing to give me a chance to make more payments if i needed to. It depends on the law office. They could take you to court and then you would have to pay legal and court costs ontop of what you owe? Talk to them and explain your situation,,,,,maybe talk to the lawyer instead of their reps., maybe he/or she has a heart.
Good luck
2007-03-21 10:30:54 · answer #2 · answered by ((surimi)) 2 · 0⤊ 0⤋
They are trying to scare you into even worse credit terms.
Also, read up on your rights in debt collection. Here are a couple of links.
http://ag.ca.gov/consumers/general/collection_agencies10.php#partial
http://www.bankrate.com/brm/news/cc/20030519b1.asp
(An interesting note in this one is that debt collectors may not "Falsely imply that they are attorneys or government representatives." I wonder how you can determine if that law firm in California is really a law firm. Even if it is, how can you determine that you are really dealing with that law firm. A debt collector could claim to be from a law firm and not really be. You might want to research that.
http://www.fair-debt-collection.com/
http://www.consumeraffairs.com/debt/fdcpa.html
Something to think about. It will cost them a bit of money to take you to court. Even if they plan to tack that onto the bill, it is still a waste of their time. There are much bigger fish to fry when it comes to taking people with debt to court.
My final thoughts on this. If you can put it on the other credit card then do it. Then put all of the effort you would have used to pay the guys in California off into paying off this other credit card. Put some extra effort into it if you can. Pay it off as soon as possible. It will help your credit in the long-run if it shows on your report that you had paid all of your debts. Of course, this will mean you having to pay some extra money but it is a safer way out. However, read over all of the conditions on the card carefully before you do this. Make sure you aren't getting yourself into another trap. Also, try your best to avoid debt. Don't go into debt for meaningless things like vacations or buying clothes or something.
2007-03-21 10:44:09 · answer #3 · answered by A.Mercer 7 · 0⤊ 0⤋
Be careful in if you pay anything thing the clock starts running again. So be careful about making a payment on an old debt. Its hard to collect on a debt in Florida. Florida has more debt protection then just about any state.
2013-12-04 07:03:01 · answer #4 · answered by Seadog 1 · 0⤊ 0⤋
they are playing hard ball.
send them a check in any amount...something...anything. If they accept the check, it is presumed that they are willing to accept installments. Also, it will legally show that you are not attempting to avoid the debt.
2007-03-21 10:27:51 · answer #5 · answered by Jack Chedeville 6 · 0⤊ 1⤋
you can send them a 'cease and desist' letter and by law they will stop calling you.... They can still sue you, but at least they'll stop calling.
2007-03-21 11:51:49 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Don't be that worried, if they take you to court, all that will happen is the court order you to pay and then you can pay monthly
2007-03-21 10:24:58 · answer #7 · answered by lil_luman 2 · 1⤊ 0⤋