CA threating legal actions

[sphinx]

I had a loan with Beneficial that was opened in 07/2004 it was an unsecured loan and the balance was $10,786. Same story, things got tough and that payment moved lower down the "have to pay" list until it was just not being paid period.

We of course had all the letters and phone calls, and being embarrassed by our inability to pay the debt we never responded. Eventually the loan was written off.

First it went to NCO Financial Systems Inc. which they were able to scare a payment out of my wife on 03/2007. Bless her heart, I believe they said something about persuing "this legally". Anyway that payment was made and nothing since.

Over the past 2 years we would occassionally receive a letter for settlement and like before we would pass it off.

The debt is now with Sentry Credit Inc.. They called this evening and of course they wanted the "new" balance of $12,536. I of course said this was not happening, and I was put on hold. He "just" got off the phone with the client and they are willing to settle for $6,268 and asked to to do two post dated checks, half for this month and the remainder next month.

I said " you want me to come up with $3000 in 18 days?" I couldnt come up with the monthly pymt! Then he suggested I come up with 10% of the total balance and then pay 1/2 of that every month so:

10%=$1253 due the end of this month

$626 due every month after that

Which I believe is $200 if not $300 more then the original payment was. I of course told him I highly doubt that I could ever possibly do that. He says ok, Im going to talk with my client and maybe get an even lower one lump sum payoff amount.

I am to call him back on the 14th, as he told me that something has to be done by the 15th as there is an "audit" the company is doing. And if something has not been agreed on my account or paid they will pursue legal action.

I honestly dont know what to do. Does anyone know what they can do to me? Sentry is in Washington, I am in Kansas. Im really looking forward to any advice and/or suggestions.

Thanx

jason

[nascar]

Buy a recorder so you can tape the next call. The first one was loaded with violations.

[sphinx]

Forgive me as I am new to this. Im a little tired of "hiding under a rock", and would like to take care of my old debts. Fortunately this is our biggest debt, past due anyway. All of our cars/house/student loans ar current.

You said there were violations in my previous comment. Could you or anybody elaborate? I am supposed to call them back tommorrow afternoon,,any advice?

[nascar]

You said there were violations in my previous comment.

"He "just" got off the phone with the client and they are willing to settle for $6,268 and asked to to do two post dated checks, half for this month and the remainder next month." See 15 USC 1692f(2)

"And if something has not been agreed on my account or paid they will pursue legal action" See 15 U.S.C. 1692e(5)

[DebtLawRookie]

You're new and probably dont know about the "fair debt collection practices act" (FDCPA)

http://www.fair-debt-collection.com/fair-debt-act.html

Violations of this act are a little costly to the debt collectors.

And so are FCRA violations "fair credit reporting act"

http://www.ftc.gov/os/statutes/031224fcra.pdf

[sphinx]

Ok guys, I recorded our phone conversation today. I am a little sketchy as to whether I could do it or not. I live in Kansas which I believe is a one-party state and the CA is in Washington which I think is a two party state. I did not tell him I was recording. Did I screw up?

Anyway if you read the original post you heard the numbers well today he calls and says all he can offer is a settlement of $6000something. I informed him that I had not won the lottery yet, so that would be a little difficult. He then stated that after reviewing my credit report they noticed we had assets that this could be attached to. I said you must be viewing someone elses CR because I dont have any assets,, He then said he saw ??derogatory remarks and asked about getting a second loan to pay the settlement offer.

I told him I dont think I can and he suggested 3 place that I am to call: American General, Citi, & CitiBank. I am to call these 3 and ask for a loan for $12,536. He says see what they offer. If they deny, then I ask for letter of denial and forward that letter to him which will "buy me some more time" or if they offer a dollar amount to loan I am to call him with that amount and he will talk to a manager to see if they will accept it.

If I pay by the 15th/tommorrow I can settle for $6k if I wait for the end of the month or after the 15th he says the lowest amount they/OC-Beneficial will accept is 70% or $8,775.

I kept asking what happens if Im denied he says lets get through this first, use your wife or parents as co-signers and try to get a secondary loan. Then we'll see what happens.

I dont want to call these places Im sure I will be denied, and on top of that I will have 3 more hits to my CR that arent in my favor,,,,,,,,,,,right?

As far as violations or what not.....

Whadya think???

[admin]

Wow, pulling a credit report without permissible purpose! Groovy. Along with the violations that nascar pointed out, you'll have lots to bargain with.

Don't get a loan to pay these scumbags - give them the facts of life and tell them that you'd like to see some evidence that they are legally able to collect, that they have some kind of relationship with the OC, etc. If they can provide some documentation, then....

You know that these guys pay less than 5 cents on the dollar for this kind of debt - offer them 20% of the original credit debt.

Otherwise, tell these dudes to pound sand (via a polite letter requesting that they not contact you anymore). They really don't have anything obviously that will stand up in court. And you have grounds for a counter suit, in my opinion.

[sphinx]

Thanx for your reply. I have printed off the DV letter available here, and just kinda filled in the blanks. I am planning on sending this off tommorrow. Thank you all for your continued help on this.