Do CC companies really hire law firms to sue people over unpaid cc debts less than $2000?

Question

Some law firm from UTAH called my mother's answering machine left a rude msg that they are going to sue me and take me to court over a Providian CC I once had. I called them today and and the guy hung up on me 2x. Finally I called back and got a "manager" he basically told me that the collectors sold it to them and they will serve me papers and sue me if I do not pay it off. I am a student and only make $8/hour!!! He basically is trying to force me into paying a sum of $25 a month w/post dated checks! He also is demanding that I get to a fax machine immediatley so he can fax me some papers to sign and then wants me to give him 3 months worth of post-dated checks! I don't know what to do but I have had other bills that I am worried about paying besides a cc bill from 5 years ago! Is there any free legal advice, can they really do this and should I sign those papers???

I actually live in OKLAHOMA, but that law firm that I have spoken w/is in Salt Lake City, UTAH

Answer 1

yes eventually they do get some of there money...but check with a legal aid i think there is a time limit on some of them..call a lawyer..they can tel you how you can recieve some legal advice....free or real cheap ..and dont sign any papers without knowing what your signing

Answer 2

Credit Card companies are legally entitled to sue you. However, they USUALLY do not. This is just a scare tactic the use. Tell this company that the MUST send you something in writing stating that they are attempting to collect a debt from you. It should state the original CC company's name, the amount, and have contact information for the company. There are way too many fake companies out there trying to scam people, so do not agree to anything without having something in writing on a company letterhead. I'd also check out the company online just to be safe. Do not go out and get a fax machine. That is just BS. They are trying to frighten you into paying. When and if you get proof that this is a lagit company you should agree to the $25 per month, otherwise the interest grows and they could possibly take you to court. But even if you went to court you would simply be ordered to pay the debt and you could make payment arrangements which would go through the court, so its not as scary as it sounds. But deffinetly get them to mail you a letter!

Answer 3

You need to check on-line for the state in which you live, there is a statue of limitations on old credit card debt. Here is it 4 years. It doesn't matter if the debt was sold to another collection place, the statue still stands unless you said you would pay, or sent in one payment since the statue of limitations.

If they call again, tell them you want the paperwork sent to you, the original bills, copy of your last payment, and last charge for this account.

Chances are that you will not have to pay anything because the statue of limitation is over. But watch what you say to them, and don't admit to anything, they have to prove it to you.

They keep the money they collect, it is not going back to the original creditor, they are just trying to scare you in to paying.

Good luck!

Answer 4

Yes, they do. However, if it has been five years I wouldn't pay anything until I checked a few things out. I don't know anything about the debt laws in your state, but in Texas a debt is considered null and void after seven years from the last date you made any payment on it. They also cannot call your mom and leave rude messages on her phone if you do not live there. Let them know that you have no means of paying the debt until you finish school and that you will contact THEM when you are ready to make payment if it happens to be before the seven year cutoff.

Answer 5

Nope. First of all there is a statute of limitations during which they can file a lawsuit based on your state, it varies, but they may, just may not be able to collect by lawsuit.
THey can harrass you by phone, send nasty letters, and haunt your credit score til you die, but they have a window of time to sue you. usually 5 to 10 years varying by state.
Of course you have to plea statute of limitations violation in court when they sue you, that is not granted by default or something you have to use it as a defense, but it will work. The law is the law. so you need to know if that is the case for the laws in your state.

I have been sued. It was over a car accident. My brother was sued, over breaking a lease. We are getting to be experts at being sued. If you live in america get used to it. DO NOT PANIC and do something dumb because you are afraid of a lawsuit.

IF they sue you, you just have to make sure you attend all court dates, and tell the truth, and provide documentation the judge requests. If they win the suit the judge will set up a payment plan because you obviously aren't sitting on all this money, and they will make the payments within your ability to pay based on your paycheck. so don't panic, ok?

First check the statute of limitations laws for your state, and see if you can talk to a credit counselor for advice, there are some that give free advice. The company is playing hard ball because some people pee themselves when someone says lawsuit. Stay calm.
However they may switch tactics and offer to let you get by paying only a fraction of what you owe, and if it is a deal, you might want to talk to the credit counselor about taking it. But again, you need to proceed with caution. They are making their money off people who react emotionally instead of logically. Don't let it intimidate you. I've been sued and lived and so have many others. It isn't the end of the world, unless you start missing court dates, and then you can get put in the hokey for failure to appear and stuff. Just make sure you are in court when you are supposed to be, and seek advice. Law students, legal aide, or just credit counselors. But talk to professionals aware of your own state laws. OK? Good luck.

Answer 6

I live in Utah and yes they can and yes they do. You have to realized that most CC companies are owned by a lawfirm. They just turn it over to themselves.

They have to go through the collection company first normally, after 30 days they sue you and get legal fees. Then they can get a judgement and bring you to court. If you dont have a job and are a student its not really like you can pay them. So they just let you go. And say okay. Just when you have to go to court show up. I woudnt give them post dated checks, because if you cant pay them. Then you bounce a check and Utah law they can charge you 3 times the amount of the check plus attorneys fees. Just let it go to court. Dont make a 1000 dollar bill, become 5,000.

******** UPDATE ***********

OH HELL IN THAT CASE MAKE THEM SUE YOU. They arent going to fly to Oklahoma to collect on a debt. They have to sue you in Oklahoma not Utah. I would ignore them, and next time they call you, tell them to never call you again. Then they cant.

Let them try and sue you. Thats why they want you to sign. They probably arent even attorneys in oklahoma. Meaning they cant sue you in oklahoma, they have to sue you where you live. Just tell them them to sue you, dont sign anything. They will say oh we will sue you blah blah blah. Say dont ever call me again. Thats the last you will hear from them.

Answer 7

Sounds like you need to work out a debt repayment plan.

BTW - the debt is probably more than $2000 by now as interest keeps being accrued.

Another thing you need to do is go look in a mirror - the person you see is the person you got you in this situation.

Answer 8

That happened to me years ago and nothing happened. The CC company already wrote it off as a lost and I just got bad credit. Then the debt was sold again and the same thing happened. It went on for 6 years. That was 20 years ago. I don't know how far they go now.

Answer 9

can you be sued? yes

will you be? it would be a small claims case ... they're cheap to file. they'd likely get a judgment ok and what would they get? the court won't give them huge amounts out of your paychecks because the court knows you have to eat, etc.

this guy is trying to bluff you. sign nothing. send no money. he can mail the paperwork to you and then you can read it and see what he thinks he wants.


oh ... and don't call him back unless it is a free call.


:-)

Answer 10

I would just forget about it, too much trouble. If it's from 5 years ago the interest rates and fees have probably accumulated to way more than just $2000, otherwise they wouldn't be bothering you at all.