should I pay them

[dita]

Hello, I was wondering if someone could please give me some advise. Here is were i'm at. I have 2 credit cards, one for 3,000....still making payments on time. the other is for 5,000 quite paying last year. Now a "lawyer" collector called me bitching - he's taking me to court so I got him to settle for a payment of 4,700. First he said he won't take payments. So I told him I would come up with the money just to hold him off for a while. I call hime back, told him I could only get 500. He said give him that and try to get 4,200 by the end of May. Does anybody think I could hold this guy off till Feb. (income tax time). If I could do that, then I would be able to pay off both credit cards. Or I may have to look into filing bk. Please, if anybody has any info on what they think I should do or could do, reply back. Thanks

[breathing_easier]

Need more info. Are you dealing with the OC's internal collection department or a collection firm that the OC hired, or are you dealing with a CA or JDB (junk debt buyer) that bought the account from the OC? Does the CA actually have a judgment against you? Has a lawsuit even been filed? If no judgment has been entered and it's in the pre-lawsuit stage, or even if you've received a Summons and Complaint, you can still DV the CA. Just be certain to file an Answer to any Summons and Complaint within the required time so a Default Judgment isn't entered. $4700 of a $5000 is no "settlement," especially when paying a CA/JDB. If you are dealing with a CA/JDB then they bought your account for pennies on the dollar from the OC.

Is this your only collection account? I'm curious as to why you would have to file BK on $8000 in CC debt. Not being nosy, we just need more details in order to be able to help you properly.

[dita]

ok, no, it's not the original creditor - it was sears m.c.. I think they sent it to Sherman Aquisitions.....they mailed me a letter last year wanting to settle for 5,025 which I don't know why but I ignored that letter. my balance was 7,100. Now this Ray Peterson is calling from Boudraue & Associates, telling me he's a lawyer - i don't think a lawyer would speak to someone like that over the phone. He was really nasty with me, of course I yelled back, I offered to make payments, he said no, must pay in full. So I called him back, told him I would try to get the money, just to hold him off so I could gather some info on this. So I called him back and he says to pay 500 now and the rest in full by the end of the month. If I could just hold him off pay a little at a time, ya know. He wants me to consolidate. I told him I'd look into and call him back. I just thinks it's rediculous to get another loan to pay this debt off, but if that's the only way to hold him off......I just don't know what to do. I guess it would by crazy to file bk for only 8,000, they would probably turn me down anyways. Please reply back.

[dita]

Or should I consult a lawyer and see what he thinks????????

[DocDon]

http://debt-consolidation-credit-repair-service.com/phpBB2/viewtopic.php?t=29657

[breathing_easier]

In a nutshell: You are probably not dealing with a lawyer. You are dealing with a CA/JDB who is trying to intimidate you and is rubbing his hands in glee that you may actually be considering forking over $4700. Only reason he wants you to pay by the end of the month is that is when the commission he is paid is tabulated and he wants your whopping $4700 to be part of that. Don't do it. Been there, done that. STOP talking to them on the phone unless you are in a one-party taping state and want to catch the "attorney" in some violations of the FDCPA. As stated in the other thread, get a valid address for the JDB, send a DV letter with a limited C&D (contact in writing only), and make sure any TL from this JDB appearing on your credit reports is marked as "in dispute." If there is a TL reporting, dispute it with the CRA. You don't need a lawyer for this. Read all of the "stickies" at the top of each of the forums on this board, and all of the information under the links at the top of this page. Read, read, read and educate yourself on collections and credit repair. You can do it. If this CA/JDB does end up suing (they probably won't) then we can help you there, too.

I see you've already posted over on the Bankruptcy Q&A forum. Very knowledgeable people over there.

[dita]

thank you sooooo much. I'm very sorry for confusing everybody with the 2 names and stuff, this is the first time I've ever chatted online like this. Ok, I will send a DV letter, but what is the limited C&D,. And what is a TL on my credit report, guess i'll have to read up on that like you said. I got my credit report online, I don't really understand how to dispute or what that means Thank you sooooooo much, jennyjenjen - dita

[breathing_easier]

TL = Tradeline. That is the entry of the account and its status by an OC

or CA/JDB on your credit report. Sometimes one or the other will report, sometimes both will report, sometimes neither will report. The TL of an OC (in this case, Sears) that has sold the account is often much harder to have deleted than that of a CA/JDB. Sometimes, though, they will drop off after one or two disputes.

A limited C&D (cease & desist) within a Debt Validation (DV) letter to a CA/JDB tells them that they may only contact you in writing, not by phone. I believe you can find the language under the "Sample Letters" link at the top of this page.

Disputing negative TLs with the three CRA (credit reporting agencies - EQ, EX and TU) is one of the tools of credit repair. You mentioned that you aren't worried about your credit right now, but it is better to start the process of credit repair now than to wait until you are ready to purchase a home or car. Also, if you ever do decide to get back in the work world, bad credit can sometimes limit your employment options. There is a lot written on this board about the dispute process. Search under "dispute tradeline" and you'll come up with tons of hits on the subject. I believe there are also sample dispute letters, above. You can also dispute negative TLs over the phone or online with the CRAs. You can simply dispute as "Not Mine," and if it comes back verified by the OC then wait 30 days or so and dispute another inaccuracy in the TL. Sometimes a negative TL will be deleted right away and other times it takes disputing them multiple times before they disappear.

[dita]

ok i get it. but what if sherman hired this "firm" Boudreau and Associates to collect my debt or sue me....if that's the case and I send a DV letter, won't that make them mad, cuz right now I have this guy thinking i want to pay it....think he'll forget about negotiating with and and just take me to court?? And when excactly does the SOL start - is it when I first fell behind on payments or when I last sent in a payment???

[divemedic]

He can try to sue, but if he is a JDB, he will not have enough to prove the debt. They go for the easy buck, as long as they smell cash, they will continue to call.

[KentWA]

Nice little thing about DV, if you DV them and they do take you to court without validating they are in violation of the FDCPA. If you make him mad he is likely to further violate. The more violations you get them one the more leverage you will have to make them go away or settle for a lesser amount.

The SOL start date is usually when your account first went into deliquency, unless your payment brought the account current. In some states it is reset with any payment, you would have to check your state laws.

[KentWA]

Ah Ha! I thought I had heard this story before, just found some info on another board. This Ray Peterson jerk is not a lawyer and this outfit is just a JDB.

[breathing_easier]

ok i get it. but what if sherman hired this "firm" Boudreau and Associates to collect my debt or sue me....if that's the case and I send a DV letter, won't that make them mad, cuz right now I have this guy thinking i want to pay it....think he'll forget about negotiating with and and just take me to court??

Sherman Acquisitions is also just another CA/JDB. Do NOT let either Sherman or Boudreau and Associates intimidate you. You are giving them all the power and they don't deserve it. Sure the phony "lawyer" is going to be ticked when he finds out you are not just another uneducated consumer and are going to demand that he follow the letter of the law. Remember that Sears, the OC, gave up on you and this debt. If you were dealing with them I'd say sure, be cooperative and talk settlement, perhaps try to get the debt reduced to a reasonable amount. A CA/JDB is in an entirely different class. Make them validate the debt. They must validate the debt in order to be able to collect. If they are able to validate the debt then perhaps start talking reasonable settlement, perhaps 25%. Or wait until when and if they do sue and you can offer settlement then. Was this a joint account with your husband? Doesn't sound like it was and in that case even if they sue it will be hard for them to collect on a judgment. Therefore, they would probably be more than willing to settle for a very reasonable amount, but only after you've made them follow the letter of the law.

[dita]

ok, man i'm going crazy!! almost have to lol about it. I'm gonna send him a DV letter, do I print that and sign it or do I write one?? I'm looking at my credit report and sears says the date this account was opened was 5/1994 and the date of status was 4/2004. then i guess it went to Sherman - they say the date opened was 7/2004 and the status is 8/2004. Should the "opened date be the same" or did it change when it went to sherman??? Also, Sears and Sherman are listed with all my other accounts under "account history". I could only find Boudreau under "requests viewed by other" Please help

[KentWA]

You need to find the date of last activity. You can call the CRA and get that. If you are looking at at a TU report you will see Date when scheduled to be removed from report, deduct 7 years and it tells you when it went delinquent. On EQ that state dat of last payment. EX does not list it.

[dita]

i ordered my experian credit report before i new all this.....it only has dates for... date opened, date of status, reported since, and last reported date. I think I made a payment in late 2003 or early 2004.....does that reset my sol???? AND sears has different dates than sherman

[dita]

ok, i got finally recieved a letter from boudreau, can i type it in, it

confused the heck out of me??

[Guest]

Yes.. type the entire text of the letter here and we will all help you decipher it.

[dita]

Client: Sherman Acq

Original Creditor: Sears - Citi Sears

Account # xxxxxxxxxxx

Balance $7157.70

Dear

This office has been retained by the above stated client to assist it in the collection of funds you owe on the above listed account. The above stated balance is the total amount due as of the date of this letter.

Due to the fact that you have not satisfactorily resolved this matter despite previous correspondence and attempts by the office to assist you in doing so, this firm, apparently, has to alternative but to commernce a review of this account wherein an attempt is undertaken to determine the appropriateness, manner and method of further collection activity. In making a dertermination with respect to further collection activity the folowing factors shall be considered: balance outstanding to our client, presence of any valid legal defense to the obligation, effectiveness of prior collection efforts, defense to the obligation, whether there are sufficient means to satisfy the indebtedness or a substantial protion therof, and whether the cost of litigation would exceed the likely recovery, if litigation were to be commenced.

In view of the above, your reason for nonpayment my have substantial influence on this office's determination with regard to the account. Therefore, please contact this office and speak with one of our non-attorney account managers. As stated previously, our client desires a non-litigious resolution to this matter.

Unless payment is made after receipt of this letter or you contact this office to arrange for repayment or, in the alternative, you notify this firm with respect to your reson for nonpayment, this office shall have no altervative but to proceed as outlined above.

This correspondence is from a debt collector. This is an attempt to collect a debt, and any information obtained will be used for that purpose.

Important notices appear on the back of this letter. Please read them as they may affect your rights.

[dita]

and the back just has stuff like: this law firm employs some persons who are not attorneys and

it aslo says that any letter with a series of numbers and or letters that appear after the alleged debtors name at the top of the letter was benerated by a computerized process that was initiated following a review of computerized data designed to determine the appropriateness of the correspondence to the recipient. this computerized data includes items such as your name, account number, account status, name of the alleged creditor, alleged debt balance, and payment activity or lack therof.......................

[CreditSuperstar]

Dita,

I think you asked if you should sign a letter to the CA. NEVER do this. They could take it, scan it, and put it on any document they choose.

IMO, this JDB is trying to intimidate and scare you. Notice they very subtley hinted at a settlement:

"satisfy the indebtedness or a substantial protion therof"

I don't think they desire to go to court at all. You need to make them prove this is a valid debt. They also need to show they have the legal right to collect it. I would let them continue to not validate and let them continue to rack up violations by reporting the unvalidated debt. Good luck to you.

FCS

[dita]

Thank you. I was nervous that I was gonna get sued, but this IS just a junk debt collecter, right? Do you think if I just ignore this, they will sell it to someone else, or should I start the DV process?? But yeah, it said on the back that if there were numbers after my name that it was computer generated...and there were numbers after my name. When I talked to this guy on the phone, he acted like Sherman hired that law firm to sue me.

[CreditSuperstar]

I'd avoid speaking with them on the phone at all. I'd start the DV process unless you have already admitted the debt to them. If you have admitted it, I'd try to settle for a deletion.

Maybe the experts can chime in?

[dita]

oh no, when he called 2 weeks ago, i told him that i wanted to pay it but didn't have the money right now, wonder if I could hold them off for about 8 months (income tax time) then I would be able to "settle" it. Thanks for the info.