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Am I going to get sued?


tigerlily
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UPDATE on Page 2 & 3

I posted yesterday about Creditor's Interchange calling a family member looking for me. Well, today, they called here and I decided to answer, if for no other reason but to establish contact with them so they don't have a reason to call my relatives.

The woman I spoke to told me that Resurgent bought my charged-off CC account and they are going to seek "legal recourse" in collecting the debt; so she was calling to see if I was willing to settle the account "voluntarily". She mentioned that the suit would be filed in the county/state where I live and named my county. I didn't say anything. She said she had my credit report in front of her and asked if I was still employed by "XYZ". I said no. (It's been 10 years since I worked for "XYZ"; they are in a different state.) She laughed and said, "Yes, I figured that information was incorrect since you live in another state." I said, "uh-huh". But she didn't ask anything about my current employer.

I told her that I have received nothing in writing about this matter. She checked and said that a letter was mailed on March 10 to "123 Sesame Street" and was that the correct address? I said yes, but I had received nothing yet.

She went on to say that she could offer me to settle the debt for $2900 (the debt when charged off was around $4500) and they could take payments, and the first one would be $900.

I asked if this information was in the letter being sent to me. She said no, but she could fax me the settlement offer. I said I didn't have a fax; but I wasn't going to make any arrangements on the phone as I wanted to wait for the letter to arrive. Then I hung up.

Now, from what I've read on this board and other internet sources, Creditor's Interchange and Resurgent sound like they are sue happy, so I want to be careful in my next course of action.

My thoughts:

I am thinking of sending a DV to Creditor's Interchange right away and not wait for the letter to arrive. Then I thought I might get in touch with the OC immediately and see what I can work out with them. The account was just charged off at the end of February and while I got in trouble when some late payments caused my interest rate to jump and things to snowball, I am willing to make a regular monthly payment to the OC. It wouldn't be much as I am under-employed right now; but it would show good intentions and my thought is if the CA sends the account back to the OC, they might be less inclined to sue if I am at least trying. Is my logic flawed on this?

My questions:

How likely are they to sue? I would send a DV, not a C&D; just the standard "show me where I am obligated to pay *you*, CA" type of letter.

What do they base their decision to sue on? I am, for all intents, not working and have no assets in my name at all.

Is contacting the OC a good idea or not?

Any suggestions as to what I should do?

I really want to pay this thing down, but the interest rate increase and late fees raised my original balance exponentially and even though I sent something to them every month, there was no way I could meet the minimum payment they wanted. On a side note, I did call them prior to the charge-off and asked for hardship, but they said they couldn't do it for me without a huge payment first.

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First, read this.

http://www.debt-consolidation-credit-repair-service.com/forums/showthread.php?t=264049

If their first letter was on March 10th, then I think you are FAR from being about to get sued. With your CR from the Big 3 in hand, check to see whether Resurgent or Creditor's Interchange or any other CA is on your CR. If they are, then DV them all. Use the address there on your CR. It's probably one of these for Resurgent.

http://search.bbb.org/Results.aspx?n=Resurgent&add=&c=&st=&z=

Assuming they are sue happy, so what? You can't change that, and DVing them will lead to one of three outcomes.

1) They don't validate, and they go away.

2) They don't validate, and they proceed with a lawsuit. You win because they are in violation.

3) They do validate which buys you time to settle. When you DV, they think "Uh-oh, this character knows the law. Pressure tactics ain't gonna work. We may have to settle this thing."

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Assuming they are sue happy, so what? You can't change that, and DVing them will lead to one of three outcomes.

1) They don't validate, and they go away.

2) They don't validate, and they proceed with a lawsuit. You win because they are in violation.

3) They do validate which buys you time to settle. When you DV, they think "Uh-oh, this character knows the law. Pressure tactics ain't gonna work. We may have to settle this thing."

So, you don't think I should contact the OC and make a payment arrangement with them?

I don't understand why I would get my credit report and DV anyone reporting this, because the original debt is mine and it literally just charged off two weeks ago?

I'm just confused and getting anxious. I suffer from panic attacks and the thought of being sued just throws me into a tizzy. I was really doing pretty well with things until I had to stop working full-time and was late on a few payments; then the interest rate jumped to 27% and after that, there was nothing I could do!

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With your CR from the Big 3 in hand, check to see whether Resurgent or Creditor's Interchange or any other CA is on your CR. If they are, then DV them all. Use the address there on your CR. It's probably one of these for Resurgent.

I did get my credit reports and Creditor's Interchange requested my credit history from one of them less than a week ago.

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If, as the woman told you, Resurgant BOUGHT the account, then the OC won't talk to you anymore. They're no longer involved. The OC took their tax write off and gave Resurgant the right to hassle you.

On the other hand, the woman could be lying. Your credit reports will tell you that...if the OC sold it, their tradeline will say "sold to another lender" and the balance will be $0. Note that "charge off" doesn't mean anything. That's just an accounting term. Its "sold to another lender" that's important.

If the account has been sold, then you have a lot more leverage. In most states, in order to get a judgement against you, Resurgant will have to establish a chain of ownership...they may not have the records. Do some searching on the board here about Junk Debt Buyers and how to deal with them.

And...they may not sue. They'll threaten...just to get you to cough up money, but, usually JDB's go after the low hanging fruit...the people they can scare in sending them a check.

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She said Resurgent bought the account.

However, the credit reports just say "charged off 2/2007".

I seem to remember reading somewhere here that when a credit card first charges off, the first CA sort of tests the water to see if they want to actually purchase the account and if they think they have a chance of getting money from the consumer, they later buy it. Hence the concept of "returning an account to the OC". Or am I crazy?

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Not crazy, but you did condense the time line a bit. Again, assuming its a CC we're talking about...the OC might actually hold onto the account for several years. Once they do actually list it as "charge off" (usually when it 180 days late or so), they'll try a couple of CAs before they even think about selling it.

Its really hard to generalize about all this. The OC has so many other things to think about...shareholders, P&L's, taxes...they may just keep it. Because its OUR debt, we tend to take it all personally, but, its really just business to the OC...they make their deceisions based on business...not timelines or "magic words" or anything of the sort.

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So, should I try and find out if the OC has actually sold the debt yet or not?

As I understand it, if I settle the debt with the CA at some point, it would still show up on my credit report because the CA does not have the power to delete it. I guess my thinking is, if I deal with the OC, they have the power to remove it later on. But I could be wrong on that.

I'm a little hazy in this stuff and unfortunately, I feel like I know just enough to be dangerous!

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So, you don't think I should contact the OC and make a payment arrangement with them?

That is correct. You should NOT contact the OC. As willingtocope said, if the OC sold it to the CA, then the OC won't talk to you.

OTOH, if the OC has not yet sold it to the CA, then a DV can stop them so you can negotiate with the OC. This protects you.

Either way, and you have no way of knowing which is the truth ('cuz they ain't gonna tell ya), you need to DV to protect yourself and/or buy yourself time.

I don't understand why I would get my credit report and DV anyone reporting this, because the original debt is mine and it literally just charged off two weeks ago?

OK, consider this, tigerlily.

My name is Mr. Sum Won, I work for Anywhere Collections, and you owe Some Ol' Bank $9,456.27 for a credit card they issued to you. If you don't want me to sue you, then you need to send me $5,500 to settle this. Send it via Western Union by Saturday at 12 Noon PST. The location to send the money is ...

Any idiot can claim you owe 'em money, whether you do or not. Validation is there to protect you against people to whom you do NOT owe money, and it provides a means for CAs collecting a debt to show that you really owe the money. But they keep such lousy records, even if the OC did sell it to 'em, a DV can stop 'em and put you back in negotiation with the OC.

DVing a debt doesn't mean you're claiming it ain't yours. DVing a debt means you are forcing Jack A. Hole Collector to prove he really bought the debt from ABC Bank. Otherwise, ABC Bank could also sell the debt to Big Johnson Collector, and maybe get double the money outta ya.

I'm just confused and getting anxious.

I understand how you feel. Lots of folks in here feel, or have felt, the same way at one time or another. We probably wouldn't be here if we didn't.

I suffer from panic attacks and the thought of being sued just throws me into a tizzy.

I'm the defendent in a lawsuit right now. It's in settlement, and I'm paying it off. However, had I found CIC sooner, started reading and learning in here sooner, I'd probably be in a better position with a better settlement arrangement. I speak from a little bit of experience when I say you are likely a long way away from a lawsuit if the debt went to CO two weeks ago. DV it now and stop the CA.

I was really doing pretty well with things until I had to stop working full-time and was late on a few payments; then the interest rate jumped to 27% and after that, there was nothing I could do!

Been there. 2 job layoffs, in 1999 and again in 2001, and the wife and I are still recovering financially. But do NOT let my situation discourage you. Had I found CIC in 2001, I know just as sure as I'm sitting here, staring at this monitor, and typing that the wife and I would have long since gotten into a better financial situation.

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...if the OC has not yet sold it to the CA, then a DV can stop them so you can negotiate with the OC. This protects you.

Any idiot can claim you owe 'em money, whether you do or not. Validation is there to protect you against people to whom you do NOT owe money, and it provides a means for CAs collecting a debt to show that you really owe the money. But they keep such lousy records, even if the OC did sell it to 'em, a DV can stop 'em and put you back in negotiation with the OC.

Okay, how will I know when I can negotiate with the OC?

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Start here, with Admin's DV flowchart. Follow it.

http://www.debt-consolidation-credit-repair-service.com/forums/showthread.php?t=228576

If the CA fails to validate and goes away, then it's likely still with the OC and you can set about negotiating with the OC.

If the CA validates, then you may have to try and settle with the CA. But before setting about settling with a CA, I strongly urge you to read Dive's "Revised PRIMER on Repairing Credit".

http://www.debt-consolidation-credit-repair-service.com/forums/showthread.php?t=263069

In any event, read the stickys here.

http://www.debt-consolidation-credit-repair-service.com/forums/forumdisplay.php?f=181

This page is for settling with CAs.

http://www.creditinfocenter.com/debt/settle_debts.shtml

Read here to settle with OCs.

http://www.creditinfocenter.com/debt/originalcreditor_debtsettlement.shtml

Again, follow the flowchart. DV now. And read, read, read, read, read.

We should not have to result to this electronic guerilla war against creditors, but the real world is a different place from an ideal world. In an ideal world, when one falls behind on a debt and then is able to repay it, one would be able to simply and without pain, threats, harassment, et al. repay one's debt.

Lose a job, fall behind on some payments, pick up a couple of 30, 60 and 90 day lates, a CO or two, and the average working person may well spend more money as a percentage of income in late fees, higher interest rates, etc. from the credit damage they'll suffer for years than that :<img src=:'> Ken Lay (hopefully xxHellxx) spent on lawyers for his role in the destruction of Enron.

Thousands of jobs lost, many of whom lost life savings, billions of dollars lost in all. Skilling, Fastow, Arthur Andersen and countless others. Same story. Heck of a world.

Climbing down from the cross. Someone can use the wood to make a nice footbridge.

((ChristPogo))

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I just have this nasty little feeling that they are going to respond to my DV with a summons.

I read that it's a violation of FDCPA if a CA threatens to sue unless they really intend to do so. I know the CA could be full of hockey in telling me "we are considering legal action"; but Creditor's Interchange has already gotten in trouble for violations in recent years, so I would think they'd trying to keep their noses clean.

Guess I'll just starting reading up on what to expect in getting sued as I wait to see the outcome of the DV!

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xdancex Your not Getting sued, i work for a collection agencies for the last 10 years and in doing so the bill collector basically violated your rights under the FDCPA. If you she calls you back tell her you are recording the conversation for your protection whether you are or not. I bet you money if you ask her "are you being sued she will say she never said that but what she said is the client may take legal action and in 85 to 90% of the time they dont. So stop worrying as it was just a empty threat8-)

:)

I posted yesterday about Creditor's Interchange calling a family member looking for me. Well, today, they called here and I decided to answer, if for no other reason but to establish contact with them so they don't have a reason to call my relatives.

The woman I spoke to told me that Resurgent bought my charged-off CC account and they are going to seek "legal recourse" in collecting the debt; so she was calling to see if I was willing to settle the account "voluntarily". She mentioned that the suit would be filed in the county/state where I live and named my county. I didn't say anything. She said she had my credit report in front of her and asked if I was still employed by "XYZ". I said no. (It's been 10 years since I worked for "XYZ"; they are in a different state.) She laughed and said, "Yes, I figured that information was incorrect since you live in another state." I said, "uh-huh". But she didn't ask anything about my current employer.

I told her that I have received nothing in writing about this matter. She checked and said that a letter was mailed on March 10 to "123 Sesame Street" and was that the correct address? I said yes, but I had received nothing yet.

She went on to say that she could offer me to settle the debt for $2900 (the debt when charged off was around $4500) and they could take payments, and the first one would be $900.

I asked if this information was in the letter being sent to me. She said no, but she could fax me the settlement offer. I said I didn't have a fax; but I wasn't going to make any arrangements on the phone as I wanted to wait for the letter to arrive. Then I hung up.

Now, from what I've read on this board and other internet sources, Creditor's Interchange and Resurgent sound like they are sue happy, so I want to be careful in my next course of action.

My thoughts:

I am thinking of sending a DV to Creditor's Interchange right away and not wait for the letter to arrive. Then I thought I might get in touch with the OC immediately and see what I can work out with them. The account was just charged off at the end of February and while I got in trouble when some late payments caused my interest rate to jump and things to snowball, I am willing to make a regular monthly payment to the OC. It wouldn't be much as I am under-employed right now; but it would show good intentions and my thought is if the CA sends the account back to the OC, they might be less inclined to sue if I am at least trying. Is my logic flawed on this?

My questions:

How likely are they to sue? I would send a DV, not a C&D; just the standard "show me where I am obligated to pay *you*, CA" type of letter.

What do they base their decision to sue on? I am, for all intents, not working and have no assets in my name at all.

Is contacting the OC a good idea or not?

Any suggestions as to what I should do?

I really want to pay this thing down, but the interest rate increase and late fees raised my original balance exponentially and even though I sent something to them every month, there was no way I could meet the minimum payment they wanted. On a side note, I did call them prior to the charge-off and asked for hardship, but they said they couldn't do it for me without a huge payment first.

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I am a Manager of bill collectors and the person you spoke to makes $12 to $14 a hour sitting in a cubical all day. The only way you can get sued is by a attorney at which the bill collector has no idea about. The remedy, the next you call them or they call you, tell them the call is being recorded and then watch how they react. Either they will get all huffy and puffy with you or they will have forgot they ever said anything about a law suit. It is against FDCPA law to threaten legal action if you do not intend on actually doing it, so you can get paid if like. Some bill collectors do anything to hit there monthly quota and then there the ones like me, its not my money i'm collecting so there is no reason for me to huff and puff at people about not paying there bill. it doesnt effect me, but just tell them your recording the conversation and watch them fold...

************I deleted the link, as it is against TOS to post solicitations. Divemedic*********

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The woman I spoke to told me that Resurgent bought my charged-off CC account and they are going to seek "legal recourse" in collecting the debt; so she was calling to see if I was willing to settle the account "voluntarily". She mentioned that the suit would be filed in the county/state where I live and named my county.

Do you know whether you're in a one party or two party state for the recording of phone calls?

http://www.rcfp.org/taping/states.html

If it's a one party state, and Resurgent is that flip with their words over the phone, I would say pick up a recording device, they are cheap, and tape your conversations. Don't tell 'em you're recording in a one party state. If they think they aren't being recorded, they are probably more willing to commit violations and build evidence for you.

If you're in a two party state, then you might try going on the offensive and calling Resurgent.

"Hi my name is tigerlily, I am recording this conversation, and I would like to speak with a representative about this debt."

Some Q&A you'd like to get recorded would be:

"When I spoke with a Resurgent representative, I was told that legal recourse was being pursued. Can you tell me exactly what legal recourse is being pursued?"

"Can you tell me whether any Resurgent representatives have contacted family members, or anyone else, about this debt?"

"Under the Fair Debt Collection Practises Act, a debt collector is required to send written notice. I am still waiting for that notice, and it has been more than five days since our initial communication."

"Please provide me with your address so that I may, in accordance with the Fair Debt Collection Practises Act, have this debt validated."

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I sent the DV off this weekend.

Today, I answer the phone without looking at the caller ID and it's the CA again, same woman.

She starts off by saying, "I talked to you last week and I'm about to sign off on this account for legal pursuit in Hazzard County..."

I told her I had only gotten the letter from her company late last week and I have written a letter in return.

She said since I had 'hung up' on her last time, she noted that I refused to pay.

I said that I did not refuse to pay, I have sent a letter in return.

She asked what my letter said.

I said that I did not wish to discuss it on the phone.

She said, "Then you can discuss it with the judge in Hazzard County" And hung up.

Wow. They cannot sue me without sending a validation first, can they?

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She said, "Then you can discuss it with the judge in Hazzard County" And hung up.

Wow. They cannot sue me without sending a validation first, can they?

SWMBO has heard 'em threaten "we'll take 70% of your husband's paycheck", "we can go into your bank account and take whatever we want", "we're going to sue you", and plenty of others.

If they're serious about suing, they won't threaten. They'll just do it. The one OC that served me with a lawsuit refered it to a lawyer almost 4 years after it went to CO, they send a letter, I DVed, they validated, sent letters for 3 more months, and only then did they serve me with a summons.

If you're really concerned about a suit, then consult a lawyer at one of these sites.

http://www.naca.net/

http://www.myfaircredit.com/index.php

I consulted with an NACA lawyer, FOC, over the phone. Guy gave me a LOT of good info, but I think a lot of 'em make much of their money doing BKs. As such, you might not get a free in office consult. Free phone consult yes. YMMV.

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SWMBO has heard 'em threaten "we'll take 70% of your husband's paycheck", "we can go into your bank account and take whatever we want", "we're going to sue you", and plenty of others.

If they're serious about suing, they won't threaten. They'll just do it. The one OC that served me with a lawsuit refered it to a lawyer almost 4 years after it went to CO, they send a letter, I DVed, they validated, sent letters for 3 more months, and only then did they serve me with a summons.

Can they really take 70% of my husband's paycheck and/or go into my bank account and take whatever they want??

I looked through my paperwork and noticed that the last statement from the OC had a payment due date of March 19, which was just a few days ago. So I thought perhaps this CA was just assigned to the account since the OC statement gave the appearance the account was still with them.

I called the OC this morning and was referred to their in-house collections dept where I was told that the account was sold February 27.

Not what I wanted to hear. That means the CA has actually bought the account and now I'm stuck dealing with them.

I told the OC person that the statement I had showed a payment due date of some 20 days after the date the account was sold; what if I had already sent a payment to the OC? She said that they would forward it to the new account owner.

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Can they really take 70% of my husband's paycheck and/or go into my bank account and take whatever they want??

The laws vary from state to state.

http://www.debt-consolidation-credit-repair-service.com/forums/showthread.php?t=210981

I haven't looked at every state's laws, but I'd guess the answer is no. Here in Washington state, they can garnish up to 25% of wages--75% are exempt.

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The laws vary from state to state.

http://www.debt-consolidation-credit-repair-service.com/forums/showthread.php?t=210981

I haven't looked at every state's laws, but I'd guess the answer is no. Here in Washington state, they can garnish up to 25% of wages--75% are exempt.

They can garnish up to 25% here.

But can they garnish my husband's paycheck? I am not working and I do not know if he's the one they'll go after. Hence, my extreme panic.

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I did find this in my state's Code:

Section 30-4-7

Husband not liable for postnuptial contracts and torts of wife.

The husband is not liable for the debts or engagements of the wife, contracted or entered into after marriage, or for her torts in the commission of which he does not participate, but the wife is liable for such debts or engagements, or for her torts, and is suable therefor as if she were sole.

(Code 1886, §2345; Code 1896, §2525; Code 1907, §4491; Code 1923, §8266; Code 1940, T. 34, §70.)

I hope that means what I think it means.

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