would a credit collections agency really sue me for $1000?

Question

recently my dad called me from texas (i live in washington) and told me that a collection agency wanted to sue me for an old debt (originally a $300 credit card....with interest $1000 now). i don't know how they got his phone number and i have had some debt before and no one has ever sued me for the money. would they reallly sue me over $1000. i know i should pay the debt back, but i can't at the moment. they want all or nothing it seems like.

Answer 1

Without knowing if you lived in Washington when you defaulted on the card --

They might sue or it was just a threat they love to use (using that threat is illegal if they actually have no plans to sue).

The collecting SOL in Washington on a credit card is 3 years from the first time you became 30 days late and never brought the account current. (I'm just guessing, but if the interest has gone up that much it has probably been quite a long time since you had defaulted)

The collection agency must be licensed and (possibly) bonded in your state to collect.

If you are past the collecting SOL and they file suit, you would include in your answer - an affirmative defense of SOL and then you can file a counter claim on them for filing suit on a time barred debt - if you win it would be up to $1000.00 in your pocket.
Since they discussed the account with your father, thats a FDCPA violation and another counter claim against them - again up to $1000.00 in your favor.

Even if they don't file suit, you have a right to sue them for the violation they committed by discussing the account with your father.

If they are that underhanded to discuss the account with someone other than you, I would suggest that you keep an eye on your county court website, from time to time, to make sure they don't sewer serve you and get a default judgment.

Also, order your credit reports and see if they are reporting the account.

You might click on my profile and do some reading in the links I have listed - to the FDCPA, FCRA and do some reading in the last link listed to learn how to use your rights.

Answer 2

You should check out the laws in your state, in Texas they cannot sue an individual for debt - companies yes, individual people no. My mother was a bill collect for 25 years, and this was a very common threat used by bill collectors to scare people into paying off there debt. I worked in a collection agency for 4 years (not as a bill collector) some of the threats they use are illegal so check your states laws on what they can and cannot say, if they start harassing your parents in Texas, - all your dad has to say is that you do not live there and stop calling - if the collector continues they let him know that he is being reported for harassment and get his name, its probably an alias but it should be registered.

Answer 3

The short answer is yes, the long answer is no. Yes you do still own the money and if they are willing to pay for your debt, they can buy it. However...... It is unlikely that the debt will be collectible. The laws vary from jurisdiction to jurisdiction, but in all U.S. jurisdictions you have a limited time within which to press your claim in court. Not having done so after all this time, the claim is probably dead. One warning here, don't pay anything on this debt, do not sign anything and I probably wouldn't even talk to them until I had consulted with my attorney. If you acknowledge this debt, you run the risk of reinstating it. Additionally, under the Fair Credit Reporting Act. Derogatory information can stay on your credit report for only 7 years after the date of first delinquency. Collection agencies will frequently try to restart the clock by mis-reporting the date of first delinquency, but this is illegal. Here again, don't pay anything on this debt, otherwise you will have created a new date of first delinquency. That is something you definitely do not want to do. Good Luck

Answer 4

Did the credit agency actually say they wanted to sue you or was that just your Dads interpretation of the situation. Unless your father and you have the same name, and they confused the two of you, normally, a credit agency will not discuss your situation with another party. If they call your father again I suggest that he gets a contact number so you can call them personally. Very seldom will you get sued for something like this, usually just a lot of harassment, a long period of bad credit, etc. It is better if you can work something out with them (monthly payment plan, reduced settlement, etc) as this will eliminate these negative factor. If you do work something out with them try to get an agreement from them to have it removed from your credit if it has already been reported as negative (sometimes this is effective) GOOD LUCK

Answer 5

Yes, They will sue you for $1,000 in small claims court. Basically, they will schedule your hearing along with a dozen or so other cases just like yours to knock out in one day.

If you really want to play harball, request an extension of the court date at least two times before suggesting a third date. Hopefully, they won't have any other cases lines up for that day and if they don't show, your case will be dismissed.

Otherwise, you might want to see if you can settle out of court because you won't be able to duck out on your credit card debt.

Good luck!

Answer 6

I am being sued for $714.59 right now by a collection agencies.I have tried everything to settle with this company they don't want to budge,so a lawyer friend of our got involved
we found the collection agencies broke the law in several places so now we are counter suing them for a few thousand dollars.

Answer 7

Its a racket ..dont pay them..it highway robbery..aint no court in the world gonna allow a credit company to charge that kind of interest..their are laws about charging 700 for a 300 loan
Its called loan sharking.the feds recently leaned on the creditors for a change..Interest rates on credit cards are falling and the higher ups in the company have now admitted their credit policys have been a bit aggressive.LOL really?want to enlighten your self? check out the link below:

Answer 8

Find a local Debt Counseling Agency ran by either State or County . They can help you out.

Answer 9

Make them a cash offer to settle. They often go for that. I suggest $150.

Answer 10

Its possible, but it depends on what they are suing you for.