Do CC companies really hire law firms to sue debt-owing consumers?

Question

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

Answer 1

Save that recording !!!!!!!!!!!
Make a few copies of it just in case something happens to the original.

The law firm is collecting a debt. Since the law firm is collecting a debt they are considered as collection agents.
That recording violated the FDCPA.

If they sue, you could file a counterclaim against them for it. (up to $1,000)

Requesting post dated checks is a violation.

You need to find out if collectors need to be licensed and/or bonded in your state.
If they are required to be licensed and/or bonded, you need to find out if that law firm is licensed and bonded to collect debts in your state.
If they supposed to be but aren't - they are collecting illegally. (and it's not only another violation that you can use, it would also get them in deep with the state and the Bar Assoc.)

Do not sign anything with them !!!
Quit speaking to them on the phone, do all of your correspondence to them by mail

Immediately send them a debt validation letter
Do not sign the letter, only print your initials or type your name.
Everything you send to them should be sent certified mail return receipt.

If that is the first time you have heard from them, and you request validation before the first 30 days are up, they MUST cease all collection activities until they validate with you.
That includes filing a suit.

If they continue collections - another violation.

If it has been 5 years since you defaulted, it may be possible that you could be out of the collecting SOL for your state.
If you are out of SOL and they file suit - yep, another violation.

You might click on my profile and click on the last link I have listed. It is a FREE credit discussion board where you can find a ton of info about your state laws (including what your state SOL is), and the FDCPA, sample validation letter templates, etc., etc.

edited to add --

I looked through some of your previous questions. If you still live in the same state that you were in when you asked a question last year and it has been 5 years since you defaulted, then you are past the collecting SOL.
That states SOL statutes are 3 years for open accounts and 5 years for written accounts.

I mentioned both open and written because that state is the only state that has exempted itself from TILA (truth in lending act)
TILA places credit cards as open accounts.

Even though that state does not go by TILA, you can still argue that the account falls under the 3 year SOL statute by using the state consumer credit statutes

Though if it has been 5 years, or more, since you defaulted, you would be past the written SOL anyway.

That state does not require a collector to be either licensed or bonded.

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

Wow... high pressure tactics.

What a lot of credit card companies do is release debt names to collectors. If a collector gets the money, they get to keep a large percentage (often 40-60% of the money). Technically, they cannot sue you since it is not their debt.

If they were to 'buy' the debt from the credit card company, then they could sue you. But these collectors don't buy debt, they try to get a percentage if they collect.

I would NOT sign ANYTHING for a collection company. The moment you do, you surrender your rights. Record any calls from them and let them know you do not want them to call you. You then have proof of harrassment and can report this to your State Consumer Protection Agency.

They know perfectly well that you make little money via your credit records. They are not going to sue you since it would cost them more to do so than they would collect.

IGNORE collectors, but call Providian directly, ensure you are speaking to Providian and not a call center! Speak with a Providian representitive or manager and ask if there is a way you can settle your debt. Explain your situation. Pay only Providian. This will do two things. First, your credit will not be as hard hit. It will be hit, but if you make efforts to repay, then it is not as bad. It will also get you off the collectors' lists.

Don't surrender your rights!

Answer 4

Yes, they can sue you, theoretically, for any amount if they want to.

But DON'T do the post-dated checks thing. They are trying to intimidate you, so don't let them. And DON'T sign anything. What you sign, you are legally obliged to do. Whenever they call, ask them if you have their permission to record the phone call (not that you will, just ask as if you really will record it). Sometimes that will get them off the phone. By law of the USA they can't indimidate and threaten you, and if they know you are recording the phone call, they might tone it down or even hang up.

You can look up lawyers in the phone book, and call to see if any have free consultations. With a free consultation, you can at least get an idea of what your options are. You need protection.

Answer 5

YES,YES,YES.. I was sued by a collection company for a utility company AT&T of California to be exact..with in one month of the statue of limations I dont recomend sending them any of your checks .I would send money orders only with proof of mailing

Ps ...PLEASE get debt valadtion first make double sure that collection agencie owns that debt.

Answer 6

This sounds like a scam. Contact Providian via the number they gave when you signed up for your credit card and ask them what the deal is.

Answer 7

dont sign anything. this is a relatively small amount and you should be able to get a settement for 1/2. why not borrow this money from a relative?

Answer 8

yes! not just credit card companies,,, everyone and anyone,, i am a bill collector and look at cbrs all day,, i see people having judgments against them for medical bills of $50.00,,,, i also see people with judgments $100,000 for taxes,,, the amount does not matter,, pay your bills! do not spend beyond your means,, if you cant afford it, do not get it! leagl advice??? you signed a paper saying you would pay,, thats what the judge will tell you in court!