Yesterday I recieved a court order for a summon to appear in reference to a collection from a credit card company. First , it went through collections, but today I called the law firm for the plantiff and they stated I would have to pay $2,700 for fees and the settlement itself. I was disgusted and hung up the phone. I called back the collection agency today and they stated I could pay up for a lesser settlement of $520, which I have to western union tomorrow. I asked if I would be cleared from the creditor and court process etc. and they said I would be cleared of all and recieve a notification of cleared balance. Is this true or will they get me for something else. My deadline for payment is tomorrow.
2007-09-27 08:34:42 · 8 answers · asked by Den B 1 in Business & Finance ➔ Credit
I agree with the others - the collector is lying.
You pay without having that agreement in writing and filed with the court - they WILL continue the lawsuit.
You pay thinking that the suit is dropped and you don't show up on the court date - they WILL show up and get an automatic default judgment against you.
Get them to give you a "signed" agreement stating that they consider the $520 is "payment in full" and that they will cease any and all collections, including the suit, and not sell the remaining amount due, upon payment. Do that before you send them any money.
If they say there isn't enough time - tell them to fax the "signed" agreement to you.
(an unsigned agreement is basically worthless)
IF they send it to you, be sure to take it to the court clerk and have it placed into your case file. Do not rely on them to file it, they won't.
IF there is already a court date set - show up
If no court date is set, keep an eye on it to be sure one is not set.
2007-09-27 11:04:15 · answer #1 · answered by echo 7 · 1⤊ 0⤋
I can't think of a single reason for a credit agent to settle for 20% of the debt, especially after they have filed a lawsuit.
Well...I can think of a couple....
How old is this debt? Do you understand the Statute of Limitations laws, and do you know what your state SOL is? It's very possible it has expired, and if you appear in court and tell the judge that, they won't collect a dime. If you pay them a dime, it will reset the SOL and the will most likely attempt to sue you again.
Do you live in Texas or some state where they do not allow garnishments? The creditor realizes that he can win the lawsuit, but collecting will be next to impossible.
Do you think they have a good case against you? If they are suing and don't have proper validation of your debt, they may be nervous about winning...they will take whatever they can con you out of.
The warning bells are the fact that they want their money immediately! If they were trying to actually work with you, they would give you a few days, and would send you a letter detailing every aspect of this settlement.
2007-09-27 10:59:25 · answer #2 · answered by Anonymous · 1⤊ 0⤋
Debt collectors want their...rather your...money. They don't (appear to) care if they have no legal right to collect.
They want to get paid, believing it's your responsibility to prove they don't have a right to collect.
This is WRONG! You and I know it's wrong, but this is REALITY with debt collectors.
How low will some debt collectors go?
What recently (and tragically) happened to Jim & Robin T. of Orlando, FL, sends shivvers down my spine.
Don't Play Around With Debt Collectors...They're Trained Debt Assassins!
By all means, stay off the phone with debt collectors.
They're trained to extract information from you...information to be used against you.
Before you consider paying one penny, confirm:
You’ve forced debt validation with the OWNER of the debt, verifying it is your debt and that the collector has the legal right to collect the debt.
You also have disputed (ala 1-2 punch) with the Credit Reporting Agency or Agencies reporting this alleged debt.
At this point, you’ve resolved to negotiate a settlement with the owner of the debt, i.e. the collection agency.
Of course, you realize all negotiations must end up in writing and that you are not giving any personal information not already available to the debt collector.
In other words, you’re not *confirming* anything.
Once the debt collector absolutely has confirmed the debt and is not guilty of any violations of the Fair Debt Collection Practices Act, you may proceed with negotiating a settlement, should your situation warrant this action.
Don't Make This Mistake!
Action Item: Yet, do *not* make the same mistake as countless others who have contacted us after the fact: They have given their bank account information, set up automatic payments or even paid with a check.
Either way, this is a BIG mistake!
Only use cashier’s checks or money orders sent with tracking number so you have sufficient record of receipt.
The debt collector can get an order of attachment from the court, provide that order to the sheriff, who then serves notice of levy upon your bank (you know, the check you wrote in good faith to the debt collector contains your pertinant banking information.
Any money you have in that bank account at the time of levy can and will be taken from you to pay the debt collector).
Jim & Robin learned this tactic the hard way, when not only did they have their bank account cleaned out but also a shocked Robin discovered her wages were garnished. What makes this even worse (if that's possible) is that they almost lost their home in which they had just move with their children. They couldn't make their payments.
Do you think the debt collectors care about your children, grandchildren or house payment?
You see, some collection agencies will agree to settle with you for less than you owe them. However, the debt collector will then sell your remaining debt to another collection agency, which now authorized them to go after you for the remaining balance.
Fair Debt Collection Practice Act ... Your Rights!
Once a creditor deposits or cashes a full payment check, even if the debt collector crosses out the words "Payment in Full" or includes "I don't agree" on the check, the debt collector cannot legally go after you for the balance.
This common practice is illegal in some states, though that doesn’t stop many debt collectors from preying on your ignorance (that is, your lack of understanding of your rights).
The states enforcing this law include:
Arkansas, Colorado, Connecticut, Georgia, Kansas, Louisiana, Maine, Michigan, Nebraska, New Jersey, Nevada, North Carolina, Oregon, Pennsylvania, Texas, Utah, Vermont, Virginia, Washington, Wyoming
***IMPORTANT** Absolutely confirm with your State’s Department of Consumer Affairs or your attorney regarding collection laws. We are not attorneys and are not guaranteeing accuracy of the aforementioned list or its interpretation.
On The Other Hand, Where Do You Live?
Some states, however, have modified this law to read that if a creditor cashes a full payment check, that debt collector retains his right to sue you by inserting the following statement to the endorsement of the check, money order or cashier’s check:
"Under Protest or Without Prejudice."
The aforementioned statement written as it appears (no derivation) legally allows the debt collector to go after you for the remaining balance.
The states with the modified law include:
Alabama, Arizona, California, Delaware, Massachusetts, Minnesota, Missouri, New Hampshire, New York, Ohio, Rhode Island, South Carolina, South Dakota, West Virginia, Wisconsin
***IMPORTANT** Absolutely confirm with your State’s Department of Consumer Affairs or your attorney regarding collection laws. We are not attorneys and are not guaranteeing accuracy of the aforementioned list or its interpretation.
To harm you beyond intimidation (which is not allowed under FDCPA), debt collectors need a court judgment.
Once debt collectors gain a judgment, the gloves can (and usually do) come off...at this time, you should contact an attorney, especially if you have assets on which a lien can be attached or a bank account that can be levied or even an income that can be garnished.
Thank you for your commitment,
Mike Payne
P.S. Please email us at credit-success (at) comcast.net if you've suffered a similar experience with debt collectors. What happened? What did you do? What did they do? What would you do differently today, if it were to happen?
2007-09-27 09:41:57 · answer #3 · answered by Crazy cat lady >^ ^< 4 · 0⤊ 0⤋
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2017-01-02 18:31:34 · answer #4 · answered by ? 3 · 0⤊ 0⤋
Make sure you get their offer IN WRITING first and it states that they are accepting the settled amount as payment in full without recourse and they will stop collecting. Make sure not to give them electronic access to your checking or savings accounts either!
2007-09-27 09:02:53 · answer #5 · answered by Noah M 3 · 0⤊ 0⤋
Get yourself an attorney, you need one. I suspect that they may not be lying, but my personal experience with these guys, is not to trust them, as they have no ethics. They are worse than used car salesmen, and politicians.
2007-09-27 08:49:08 · answer #6 · answered by Steveo 5 · 0⤊ 0⤋
Never trust anything they say, get it in writing.
2007-09-27 09:01:27 · answer #7 · answered by ? 7 · 4⤊ 0⤋
I wouldn't believe them until you have it in writing.
2007-09-27 08:56:10 · answer #8 · answered by JB 6 · 0⤊ 0⤋