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Judgement after charge off


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Tulip,

I have no idea whether that is true or not. But I will keep my eye out for anything that I see or hear! If you find out whether that is true or not, please share. It would be rather interesting if this is, in fact, true!

A

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According to a contact at MBNA, banks are required by federal law to charge-off bad debt against loan-loss reserves after six months of inactivity. They can still pursue recovery if they choose. Whether they can do this on their own or through CA's I did not get a definitive answer. However, I do know of FUSA/Bank One going after a customer AFTER their CA sent a letter advising they had ceased collection activities! The debtor resides in a nursing home of sorts and was dropped by the CA because they felt the man had insufficient income or assets to make collection worthwhile. The man was told by his attorney not to bother doing anything and most importantly not to get worked-up by smoke & mirrors! <g>

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Tulip,

I also have a judgement against me from Providian who charged off the debt and then obtained the judgement by default.

Recently, I received a letter from Providian that the account was sold to Chase, and even though the account was closed, a new cardholder agreement would apply, which they enclosed and which included an arbitration agreement and that if I didn't respond in seven days the new terms of the agreement would become valid, meaning that I agreed to the new terms.

I called the attorney who obtained the judgement concerning this a few months ago when this process was taking place and he said that this letter must have slipped through the cracks, etc., meaning he had no knowledge of it.

I recently called him back and now he says they signed an agreement with Chase to collect on the account and when I suggested trying to settle the account, his response was that the best he could do was a lump sum settlement of 65% of the outstanding balance and all my prior payments which totaled now to date of $2000.00 would only go towards the interest @ 16% and a small amount of principal.

In studying the judgement and the new arbitration agreement, I discovered that the new terms include all actions and claims of their succesors, debt collectors, etc. and the terms seem to superede any prior actions taken, including claims by legal suit, etc..

I'm not an attorney but since this debt was sold or assigned which is covered in the original agreement, the new agreement which Chase sent me has to apply.

Because of all of this , I am going to send all documentation to my attorney, with the intent that maybe he can get a motion to vacate the judgement based upon the legality of the new agreement Chase sent to me.

Basically, if a motion to vacate could be attained, then their right to resue the claim could be negated by the new agreement.

This could be a long shot but I've heard that courts have to unhold the law, which is why were here, simply defending our rights.

If anyone out there reading this has had the same thing happen to them, please respond and maybe some good can happen to help us little guys fight these guys.

I don't know of your status with your Providian judgement Tulip, all I know is that when I called Chase, the rep said that Chase bought a particular block of Providians accounts.

I wonder what they payed for them? Let me know. Thanks all!!

[Edit by smokyjoe on Friday, October 11, 2002 @ 10:26 PM]

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My question is - if the judgment has already been entered based on the OLD Providian agreement, and the account is now, obviously closed, HOW can they make the NEW agreement stick to the OLD judgment ? What's the wording in the judgment ? If its only to pay the amount ordered, then I would think ONLY those terms would have any affect on your liability.

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I just don't understand how they can charge off account (which means they get tax credit; or in other words taxpayer money; which is us) plus get judgement for full amount plus interest. I guess it's just screw the consumer every way possible.

When everything with Providian first happened I was really willing to work with them to settle (even though they were my only creditor that wouldn't work with me). But, the more I read about them the more I'm inclined to hold off and see what happens with them. Maybe they'll go belly up and the lawyers the've hired won't be so eager to come after me.

I also have a question about this judgement. I was not personally served. Papers were served to my husband (we were seperated, I had not lived at that address for 8 months). Is this grounds to have judgement vacacted?

[Edit by tulipchic on Monday, October 14, 2002 @ 01:48 PM]

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Admin, It appears to me based on what people are reporting on this board, that the best course of action with regard to CA's may be to do nothing at all. Payments only prolong the agony of SOL's that will never expire and rude collectors demanding more and more money with interest. Perhaps the best alternatives would be to get some money together and offer a take-it or leave-it settlement, or go the BK route if feasible. What is your opinion?

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Tulipchic,

You need to check your State's statutes on what constitutes proper service. By serving the papers to your EX, even if you were only legally separated at the time, doesn't sound like proper service to me. You could have grounds for having the judgment vacated due to improper service. I'd call the court that issued the judgment as ask for the details of the judgment AND the details on the service of the summons. Once you have that and the state statute you have somewhere to start.

What state are you in ?

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Smokeyjoe,

I think the problem here is when you make payments you are in effect ratifying the new terms and extending the statute of limitations in your state. A judge friend of mine once told me it is always better to scrape up some money and settle out of court else you'll likely end up in court. Debt never dies and in perusing the board, it appears banks such as Chase are getting away with murder by taking tax charge-off's then even after collecting from multiple agencies are reaging the debt to appear as new and beginning the collection process anew! Not to advocate evading a debt, but I personally would never under any circumstances pay installments on an unsecured debt that has been charged-off until such time as I could settle for a pre-determined amount and with credit reporting conditions. As another strategy, threaten to file bankruptcy if they pursue a judgment. BK is a nuclear explosion to judgments and liens so long as they were not incurred the result of criminal offense.

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