Sounds like you owe the money and have been on the run. You areSOL (**** out of luck).
Call them and try to work out a payment arrangement or a SIF (settle in full). Tell them some sob story and tell them you will pay it off if they give you 70% off. Then go get the money to SIF. and be done with it. Make sure they gife you the SIF amount in writting. The collector needs to make the quota, so I am sure they will take 30% of the total debt.
Your credit report should show a SIF 45 days after you make the payment and they can never bother you anymore.
FYI, Bud Hibbs advice is largly conjecture and ad hoc attacks on collectors. If you owe the money, you owe the money.
2007-07-25 09:07:48
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answer #1
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answered by heartshapedmailbox 2
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A couple questions first.
Did you have any type of agreement with Mervyns on how you were going to pay this debt back? If so, you have something to work with.
For now, hold your ground. Send them another letter, and ask them "what is their to work out?". You are paying the debt back, you have your proof you sent them $100 and they accepted it. What's the problem.
Oh, and why they way, when you respond please include the validation information you asked for, otherwise won't respond at all.
As you state, you are learning from your mistakes. Don't make any more. Read the laws, learn your rights, and don't let them push you around.
Keep a couple things away...
Collection agents love to imply they are attorneys, or work at a legal office. Truth is they may have one attorney in their office...usually someone who barely made it through law school and can't practice any honorable law other then collections. So don't let that bother you.
As noted in previous messages, garnishment of wages is illegal in Texas. Use that as leverage. You are currently paying your debt as best you can...or they can try to sue you and get nothing.
2007-07-25 09:40:32
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answer #2
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answered by Anonymous
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If the Statute of Limitations had expired, chances are the debt is owned by a very low tier (sleazy) collection agency. If you made a payment, you restarted the SOL clock-- yes, that was a mistake. But a CA like that will deal.
They can threaten you with court, but the truth is the worst that can happen if it goes to court is they'll get a judgement saying you owe the money-- and you already know you owe the money. Then you ask the judge for a payment plan that meets your needs. I don;t now about TX, but in CA, payment plans can be really low-- I once got one for $25 a month on a debt of several thousand dollars.
Odds are, though, they;d rather deal than waste their time in court. Offer them 30%. Even if you settle at 50%, that's an improvement. But yes, as someone already said, BE SURE TO GET IT IN WRITING. CA's, especially lower tier ones, are not known for their scruples.
2007-07-25 09:38:38
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answer #3
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answered by dj 3
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You may have messed up by "re-affirming" the debt. The good news is that you live in Texas, which makes you garnishment-proof, except for tax liens and child support.
Which rent-a-lawyer "law office" are you dealing with?
I strongly suggest getting in touch with Bud Hibbs at budhibbs.com...he often gives first-hand help to Texas residents, being that is where he is located.
ADDITIONAL INFORMATION: Arches is actually out of the Salt Lake, Utah area, and they are junk debt buyers. They may assign the account to a Texas rent-a-lawyer or........
Mr. Richard D. Paul - Owner
This company has the same owner, fax and address as another company, Paul Law Offices.
Translation: They bought the debt for pennies and are going for the windfall......
More Information from Utah Secretary of State:
Registered Agent: MICHAEL J LAW
[Search BES] [Search RPS]
Address Line 1: 230 W 200 STE 3301
Address Line 2:
City: Salt Lake City
State: UT
Zip: 84101
This guy is the Registered Agent for Service of Process for both Arches Financial and Paul Law Offices.
2007-07-25 09:06:02
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answer #4
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answered by Anonymous
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I would call them back and tell them you expect them to follow the law and validate the debt...it is against the law for them not to provide you with a full accounting of the debt. Explain that once you recieve your debt validation you would be more than happy to continue making payments.
Also send them a certified letter so you can prove you requested the debt validation.
Inform them that you know your rights and they cannot threaten to sue you in response to a debt validation request. Tell them that if they want to go up against you in court that you are sure the judge will be very interested to hear they refused to send you proof of the debt.
Stand your ground, threats are a common tactic, they don't get paid unless you pay the debt, so they will use all their dirty tactic to scare you into paying. Request to speak to the person in the letter or who has been calling, don't deal with the secretary. Tell her you need to speak only with the person who has been contacting you.
2007-07-25 09:15:11
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answer #5
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answered by Anonymous
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There are many times that I disagree with SCH but I agree with her this time - except for the statement to tell them "once you recieve your debt validation you would be more than happy to continue making payments"
I would not recommend making statements like that.
But I would tell them that they are in violation of the Texas Finance Code by contacting you for debt collection purposes after receiving a validation request from you.
Texas has it's own version of the FDCPA (Texas Finance Code) and their attempt to collect while they are in validation may possibly mean that they could face not only civil penalties but criminal fines as well. (by that call they have made to you, they have already violated the Tx FDCPA)
While the The Federal FDCPA states that if you send a validation request within 30 days of their first contact they must cease all collection attempts - the Texas FDCPA is much stronger when it comes to validation requests and there is no time limit in requesting validation and having them cease all collection attempts.
Third party debt collectors are forced to respond in writing within 30 days of your request for validation (though the Tx. FDCPA calls it verification) or they must cease all collection activities. And they MUST respond in writing, either to provide validation or to request more time, notify you of their inability to validate, etc., etc., etc.
§ 392.202. CORRECTION OF THIRD-PARTY DEBT COLLECTOR'S OR CREDIT BUREAU'S FILES.
(a) An individual who disputes the accuracy of an item that is in a third-party debt collector's or credit bureau's file on the individual and that relates to a debt being collected by the third-party debt collector may notify in writing the third-party debt collector of the inaccuracy. The third-party debt collector shall make a written record of the dispute. If the third-party debt collector does not report information related to the dispute to a credit bureau, the third-party debt collector shall cease collection efforts until an investigation of the dispute described by Subsections (B)-(e) determines the accurate amount of the debt, if any. If the third-party debt collector reports information related to the dispute to a credit bureau, the reporting third-party debt collector shall initiate an investigation of the dispute described by Subsections (B)-(e)
and shall cease collection efforts until the investigation determines the accurate amount of the debt, if any. This section does not affect the application of Chapter 20, Business & Commerce Code, to a third-party debt collector subject to that chapter.
(B) Not later than the 30th day after the date a notice of inaccuracy is received, a third-party debt collector who initiates an investigation shall send a written statement to the individual:
(1) denying the inaccuracy;
(2) admitting the inaccuracy; or
(3) stating that the third-party debt collector has not had sufficient time to complete an investigation of the inaccuracy.
(there is more to § 392.202, but I posted the most relevant parts)
You did not re-set the collecting SOL unless you had a "written" contract with them to pay the account.
§ 16.065. Acknowledgment of Claim An acknowledgment of the justness of a claim that appears to be barred by limitations is not admissible in evidence to defeat the law of limitations if made after the time that the claim is due unless the acknowledgment is in writing and is signed by the party to be charged
The collecting SOL in Texas is 4 years from the last time you made a charge or payment on the account "before" it was charged off. (§ 16.004) (this answer is already long so I'm not going to post the lengthy statute)
If you are past the collecting SOL and you do not have a contract to pay in writing with them, that one payment will not re-set the collecting SOL.
You would have a legal right to send them a SOL letter when 30 days have passed from the date they signed the green card when receiving your validation request.
Texas does not require collection agencies to be licensed, but they must be bonded - I'm going to try and see if that company is and will edit this to let you know.
In the mean time, you might click on my profile and do some reading in the last link I have listed (in the Credit Forum AND in the Databases and Reference Forum>State Laws>Texas on that site).
I also agree with Studly (geeze, I've been researching and typing this for 49+ minutes lol)
edit+++
I could not find Arches Financial listed as being bonded.
I would suggest that you contact the Secretary of State directly and ask them about that collector to cement the fact that they are not bonded. (they would be in mega trouble with the SOS if they are trying to collect without being bonded)
http://direct.sos.state.tx.us/debtcollectors/DCSearch.asp
I would not recommend mentioning to the collector about the bonding yet. Wait until the 30 days have passed and if they respond with validation, you have them on another violation. (and they would also have to answer to the SOS)
Even if you are still within the collecting SOL, it sounds like they have violated the law and your rights and "may" possibly owe you more than you might owe on that account.
oh i see someone put a negative mark on my answer - musta been a collector lol
2007-07-25 10:29:44
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answer #6
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answered by echo 7
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