CA not licensed with my state...what now.

[winndknot]

Hello all, I am new to your forum and by the reading I have already done, I think I will find it very helpful to my situation. I am being sued for a credit card debt (Household/Arbor) in which I had been paying through Midland Credit Mgmt with an agreement to automatically withdraw from my checking account for a time period of once a month for 12 months. After the first year they called and we re-upped the situation. After the 2nd year they did not call and I let it go (stupid of me I know).

They called in Dec. right after I had a $40,000 medical procedure done and was told my insurance would not cover it. The person I explained my situation to informed me that it would be considered as a hardship situation and she would get back to me.

Well lo and behold I have now received a phone call (or 2 or 10) from an attorneys office. I made the mistake of speaking with them and asked them for proof of the debt. I then received a letter 20 days ago with the "Unless you dispute this debt etc.") So I sent a DV letter, in the meantime I have received a summons & complaint. I have constructed the answers to deny every article of the complaint.

I have also contacted my states (Idaho) department of finance and found that neither the attorney, initial collection agency (Midland) and now the new collection agency are not licensed to do collection business in my state.

My question is...do I just let them know I know they are not licensed, or wait to enter into court and make the point to the judge?

another ?? is...am I right to deny everything and make them prove all of the statments in the complaint?

[Amerikaner83]

depends...is a collection agency required to be licensed in Idaho? I know they are in WA but not sure about ID.

[winndknot]

yes they must be licensed and bonded in Idaho

[StressPot]

Litigation is in process, so I would take the normal steps to defend yourself. In your shoes I would file an answer, and file all other appropriates (Discovery, ect..).

Know that anyone can sue you for anything. The court is there the judge the arguments and rule for one side according to the laws that apply to the court.

I do not think their need to be licensed will affect the court outcome - I may be wrong and if I am someone please pipe in! I will say however that you could file a countersuit and include the licensing issue there. That will put pressure on them to back off - especially if you can present a strong counter suit.

In your place, I would file complaints with the Attorney General and licensing agency of your state and talk to an attorney (www.naca.net) if you can get a free consultation. It's entirely possible for them to help you file a counter on contingency.

StressPot

[swirlgirl]

Is the CA based out of ID? If not, then you also need to investigate if out of state CAs need to be licensed in ID.

[winndknot]

Ok so a new twist in the saga:

Forign corporations can do business in the State of Idaho with the proper licensing. However, I owe the cc company Household, had arrangements with Midland, now received a letter from attorney, and a summons from xyz co with the attorney as their representation.

xyz company is not licensed in this state, but the attorney is as a forign corp. so who exactly is suing me...the attorney or xyz, If xyz is named as the plantiff I can prove that they are not licensed here. Will that hold up? Or is it the attorney for the plantiff the one suing?