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Need help - Lawsuit served


txgirl
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This is the first time I have experienced something this drastic from a collection agency. I was served a lawsuit by a constable last Thursday. I needed some guidance regarding what my options are and what's the worst that could happen. Someone told me I could get a warrant for my arrest and be sent to jail. Others have also said that my bank account could be frozen. Are these true? Here are the details:

1. Who is suing you?

Great Seneca Financial Corporation (assignee of Discover Bank)

2. For how much?

$2254.65 + 19.9% interest + $338.19 (attorney's fees) + $72.00 (court costs)

3. Who is the original creditor

Discover Bank

4. How do you know you are being sued?

I was served by a constable with a lawsuit citation.

5. How were you served? Were you served?

By a constable.. Yes.

6. What was your correspondence (if any) with the people suing you before you think you were being sued?

I have never spoken with Great Seneca Financial Corporation.

7. Where do you live?

Currently in Plano, TX (Collin county)

8. When is the last time you paid on this account?

According to the document attached, Oct. 2002.

9. What is the status of your case (if anything has been opened)? You can find this by a) calling the court or B) looking it up online (many states have this information posted daily).

I am not sure. I am supposed to go see the judge on the 28th and answer some questions that were attached to the paperwork.

10. Have you disputed the debt with the credit bureaus (both the original creditor and the collection agency?)

No

The rest of the background is, the account was opened in 2001 as a balance transfer. It went into charge off status in 2003. I stopped paying the bill, because I got into a situation where I had to decide if I should continue paying my credit card bills (Discover wasn't the only credit card debt I had) versus being able to pay rent, food, utilities. I was also told that once credit cards go into charge off status, there is no point in paying for them and that they eventually get dropped. Because of that, I didn't worry about it. I thought of going into debt consolidation and looked into it. The debt consolidation places I spoke with wanted over $500 from me per month. There was no way I could afford that plus be able to "live". In any case, now I am in this situation. I never imagined that a collection agency would sue me and especially for a debt that's less than $3000. Thank you in advance to any and all who give me some advice regarding this situation.

--txgirl--

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In 99% of all debt collection cases the person who is attempting to

collect a debt has purchased the debt, whether from the original

creditor or from another debt collector. When a debt collector calls,

ask that person who owns the debt and should they say they do, then

ask to see the contract you have signed with them. They can NEVER show

you a signed contract you have with them. I will always let them know

should they have a signed contract between me and them, I will honor

their contract. Buying a debt does not mean buying the contract as

well. Buying a contract is done all the time, however all parties to

the contract must agree in writing to be valid.

A debt collector will attempt to have you agree to a verbal contract

over the phone and all you need to say is "I don't respond to verbal

communication, put your offers in writing."

Consider this.............a debt has been created by not paying a

bill. A debt collector is attempting to collect on that debt. The very

first question I ask is "who owns this debt?" Ask them if they would

please provide to you the current contract they have that would

obligate you to paying that debt. Listen very carefully to what they

say. Why, because they will not go there and answer that question

properly. I always make the statement to a debt collector, "your firm

bought this debt and by doing so you have paid the obligation you are

attempting to collect from me." "Now all you need for me to pay is a

contractual agreement between us and I will pay it."

That's right folks, when a debt collector purchases your debt

from "ABC" Creditor or Debt Collector, they have just paid your debt

in full. Now what they have done is bought a contract you have not

obligated youself too. If you have used Stephen's A4V/R4V to the

original creditor and closed the account you have a valid and binding

agreement/contract. You can tell the debt collector that you have such

a contract and you do not owe him/her any such debt. When you complete

the phone conversation, let them know you would like them to put you

on their no call list. If they call again, you tell them you are on

their no call list and you want to know who you are speaking with,

first and last name, address, phone number and ss#. Most generally

they will hang up on you. Why, they tell you up front that the call is

being recorded and if it was, then guess what, they have your verbal

request on tape. What they are doing is harrassing you to pay a debt

you are not oligated to pay. That's "FRAUD"!

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Actually, your advice is legally incorrect. Purchasing of contracts is done all the time and does not erase any obligation you have to pay the bill. I don't know how you got the idea that purchasing paper means that they have paid the bill on your behalf, because that is very, very wrong. Nearly all contracts today have a clause allowing the creditor to reassign a debt. The difference here is that the debt was reassigned (or purchased, if you like) after the debt was in default, which makes the suing entity a debt collector, as they are not an innocent purchaser of value.

If the first communication from them is a lawsuit, they are still required to allow you to request validation. There are some things they are going to be required to provide in order to win the suit.

1- A copy of any and all statements to prove how the amount in question was calculated

2- A copy of the contract that establishes the debt

3- A copy of the reassignment that shows they plaintiff now owns the debt

4- Remember that if the plaintiff purchased the debt AFTER it was delinquent, they can not testify to any event that happened BEFORE they purchased it. Any testimony becomes hearsay. How can you testify to something you have no personal knowledge of?

At this point, however, I would recommend an attorney, as you are not prepared to fight this, and there isn't time left to learn. There are members here with more experience and knowledge of Texas law than I, maybe one of them will chime in here.

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Thank you to both of you for responding. I don't recall if I received noticse. I may have.. It's just at the time, I was involved in a bad relationship and there were issues upon issues I was also dealing with. In any case, being that I cannot afford a lawyer right now, I have been advised to go to a place that gives free legal aid. I will meet with them tonight. Hopefully I can get some answers/direction towards the best route for my case. In addition, hopefully, I'll be able to get a lawyer who might be interested in helping me with this case. The attorneys that have been employed by the plaintiff are Wolpoff and Abramson and I've heard a lot of nasty things about them. Thank you again.

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