Please help me I'm being sued by a collection agency?

Question

Yesterday of all days I received a note that I was being summoned to court for a credit card that I had 5 years ago. They are saying I owe them 2,400 plus interest however the card they gave me was only 300.00. I learned my lesson and have been trying to build my credit and now this happens. What do I need to do? I'm looking for a job right now and am on very low income with my husband. We can't afford to settle for the 2,400 and I dont believe we should have to pay that much when it was only 300.00. What do I need to do and what will happen if I don't show up for at court? Are there any pro bono attorneys that might take my case? I am desperate and I know that credit card companys are very mean especially with the interest rate thing. If they charged off the account are they allowed to add interest?

Answer 1

i would get a attorney to settle with them, do you even have 1200 right now to give them.... Ok you go to court they get a judgement against you that is just half the battle in recovering there money. After getting there judgement they have to garnish your wages, well no job right now this will be difficult for them. May you try first tell them i have 1200 in cash take it or leave it, you maybe surprised. 1200 is still a huge profit for them.

Answer 2

A creditor will add late and over the limit fees but those stop once they charge off the account. However, once it is charged off interest is allowed to accrue, but generally only at the legal rate for the state. In most cases this is between 8%-12% per year. They are also allowed to claim the attorney and court costs. These costs could easily add up to several hundred dollars.

You need to find out if you are required to file a response. If so do not admit to the debt. Instead request that they provide proof that it is your debt, the payment history(including last payment), as well as a detailed statement as to what makes up the $2400.

Since this has been 5 years you may have the Statute of Limitations working for you. This is the amount of time a creditor has to file suit against you. Depending on the state it is between 2-6 years from the date of the last delinquency. If they can not prove that you made a payment in that time the judge will dismiss the case. Below is a list by state and you need to look at open accounts.

If they can prove that you are still in the SOL and it is your account the only other thing to look at is to make sure there is nothing illegal in the amount they are suing for. This would include things such as "fees" that the collection agency added on. In several states these "fees" are illegal and in this case you may get the judge to reduce the amount.

Answer 3

Half of the problem is the interest rate--the other half are the late fees. You could owe $9 in interest each month and $40 in late fees.

The problem is, you didn't learn your lesson. You used up the credit on the card and never paid them back. You may have gotten subsequent credit and could be paying the new card(s) off in a timely fashion, but that still left the original debt.

If they are suing you it's because they must think you have a way to pay some or all of this. Their other option is to settle with you for a partial payment and cancel the remaining debt. (Any debt cancelled is taxable income to you!)

Answer 4

If things get bad you can always go to google.com and type in legalhelpers....Do they have your bank account information? Do you remember ever paying them a small payment of any kind? If you think they have your checking account info then they can get a judgement and levy your bank account. If they have that info, immediately close your checking account down and open a different one at a different bank and never give it to a creditor. Pay by money orders only and tell them you don't have a bank account anymore. Watch your back. I know, I use to work for legal collection agency and this is what we did to debtors all the time. Be careful and take this advise if this applies to u

Answer 5

Check your local phone book for a legal aid lawyer who can give you actual legal advice. Go to court if you've been ordered to. Skipping it will mean you automatically lose your case and you could face charges for failing to appear. Bring whatever proof you have of the original debt. Contact the original credit card company and speak to them. Make double sure this isn't a scam before you pay a dime. But definitely find a lawyer.

Answer 6

1. If you do not show up for court, you lose the case, and they are awarded the full amount that they are seeking.

2. The statute of limitations may have expired, depending on (1) the state where this is happening and (2) when you last paid, agreed to pay, used the card, etc. Look up (1) how long the statute of limitations is in your state, and (2) when you last paid, agreed to pay, used the card, etc.

Answer 7

What they are doing is perfectly legal and when you signed for the card, this info was revealed to you. Often, If you make arrangements, these credit card companies will settle for less but if it has been turned over to a collection agency, your chances of settling for less are not as good.

Answer 8

if you fail to show up in court, a default judgment will be entered against you for the amount prayed for.

so you have to show up to fight the amount.

even at 30% APR, I can only come up to 1111 or so owed. It therefore seems obvious that a whole slew of late fees and other 'charges' were added on, which may or may not be allowable in your state.

you need an attorney.


GL

Answer 9

Unless you can prove the debt is not your debt, there's little that can be done.