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Received letter from 'Discover'

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I previously entered into a payment agreement with Discover Card last year. Since that time the agreement expired. I have not communicated with them since and have not been able to pay.

I received the folowing letter a few days ago:

"We have been authorized to proceed with legal action to secure the balance you currently owe us as of January 5, 2012.

If we do not hear from you by 8:00pm Eastern time on February 29, 2012, your account will be forwarded to an Attorney to obtain a judgement against you.

To stop this action, call us immediately to make acceptable payment arrangements.

CAll NOW BEFORE YOUR TIME EXPIRES"

Of course they added the usual 'attempt to collect...' disclaimer at the end of the letter.

Does this mean they are sending it to collections or is this actually an attempt to sue? What recourse do I have?

Thanks for your input.

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This means they plan on suing.

Recourse????????

They are an original creditor - you have no protections under the FDCPA.

None. From what you've posted, there was an agreement. You paid some, then it expired and you have not paid since.

Your options are few:

1. File BK;

2. Contact them and figure something out;

3. Get ready to be sued - Discovery does like to sue. This means that you'll need to learn civil procedure FAST. File an answer, tie them up in court for 9+ months - courts in NY are slow... maybe then you can negotiate a decent settlement before 2013.

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They are going to sue is what it means.

You can file BK anytime. If I was going to file BK then I'd fight them just for the heck of fighting. Who knows, you might win. If you lose, you file the BK you were planning on filing anyway.

You can file BK as your house is on the auction block with going once, going twice, and instead of sold, a BK is filed and boom, the acution stops right then and there.

I'd talk to a few BK attorney's. Most give a free visit. Get a few and go over your options.

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I would suggest to NOT wait until after a judgment to file BK. When a BK discharges a debt or judgment, those things remain on the record, though in a "discharged" status, for as long as they normally would (mostly for 7 to 7.5 years). If you do BK before the judgment is entered, the case stops and there is no judgment (and you can just say to people that you didn't have the money to win your case). If you do it before the case is even filed, then there would not even be a record you were sued.

Me ... if the account were at a JDB, I'd drag it out as long as I can to just before a judgment just to force more cost on them. But with an OC, I'd just file the BK ASAP and get past that phase of life sooner. OCs are usually not the bad guys.

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I would suggest to NOT wait until after a judgment to file BK. When a BK discharges a debt or judgment, those things remain on the record, though in a "discharged" status, for as long as they normally would (mostly for 7 to 7.5 years). If you do BK before the judgment is entered, the case stops and there is no judgment (and you can just say to people that you didn't have the money to win your case). If you do it before the case is even filed, then there would not even be a record you were sued.

Me ... if the account were at a JDB, I'd drag it out as long as I can to just before a judgment just to force more cost on them. But with an OC, I'd just file the BK ASAP and get past that phase of life sooner. OCs are usually not the bad guys.

WHAT!!!?

Maybe not Discover, but OCs are getting to be worse than JDBs. I can tell you that Discover uses the same slimy lawyers as the JDBs do here. Same dirty tactics in court, and a lot more resources to back it up. Plus, you don't want to know what kind CC offers I've been getting with my credit score in the dumps. I saved the CC offers that I received while I was getting sued over CC debt. I'm still getting offers talking about "rebuilding my credit."

I'd be ready to go with BK and drag the fight out with an OC.

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WHAT!!!?

Maybe not Discover, but OCs are getting to be worse than JDBs. I can tell you that Discover uses the same slimy lawyers as the JDBs do here. Same dirty tactics in court, and a lot more resources to back it up. Plus, you don't want to know what kind CC offers I've been getting with my credit score in the dumps. I saved the CC offers that I received while I was getting sued over CC debt. I'm still getting offers talking about "rebuilding my credit."

I'd be ready to go with BK and drag the fight out with an OC.

I think I will take both of your suggestions (you and Torden) and drag it out, then claim BK.

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I think I will take both of your suggestions (you and Torden) and drag it out, then claim BK.

You have to understand, I'm a stubborn SOB. Discover may actually bring what they need to win. I'd still fight anyway, but that may not be the best option for you. Believe me, dealing with an OC for your first rodeo is very scary and stressful.

I can't make your decision for you though. You know what your risk tolerance is, you know what your stress tolerance, and I don't. You know how much the debt is, I don't. If it was a $50,000 debt, even I might just say "Yup, BK7, here I come!" If it was a $2,500 debt, I would make sure that their legal fees were at least 20x that amount in the end, even if I did lose.

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Well guys, it's been a while but, I just received a letter from a law office (not representing Discover Bank) that states the following:

"It has come to our attention through the County Court records, you have been named as a Defendant in a la0wsuit recently filed by Discover Bank. It is possible that the process server has not yet served you."

So yes, it turns out they are correct in saying that I have not been served as yet. Iactually thought that they may have checked my credit report and noticed a recent foreclosure and figured that it wouldn't be worth the trouble.

I live in New York City. How can I check to see if or when I will be served. It's already been over three months since the original letter from Discover. I just hope that the summons wasn't lost or that they're not playing tricks that would land a default judgement against me such as the so called "Sewer Service".

This Law office is offering to help, but I'm sort of skeptical. What do you think?

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These types of lawyers query the court databases to find people such as yourself who have been sued. THey are probably legit (though you should check your state bar association). Personally, I would not hire a lawyer who contacts me in this manner. I would rather find one through referral, by asking people I know/trust, such as a CPA I have used in the past, or another lawyer I have used in the past for something else, or friends/family/business acquaintances.

Discover is known for suing. They sued me. I kept checking the county court online DB, but discover sued me in city court, which (as far as I know) does not have an online DB for the public. The only reason I found out about it was because the process server showed up at my house.

I don't know what's in NY. You will have to ask around and see if their is an online system. You said their letter said county court. Do a search for your county court website, and see if they have a link to their online search

At the very least, call the law firm that contacted you, and ask them what court, and what is your case number. They should tell you that for free.

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Thanks Scarab!

I checked the NY County Civil Court online. They do have a database. The case is listed as 'active' but no appearance date in the heading. I' would assume that I will be served when a date is filled in.

Do you know what the heading "Plaintiff Firm" or "Defendant Firm" means? (They are additional headings that have not been filled in)

Do you know how long in advance of the court date they issue the summons?

I've registered to have e-mail updates as they progress. Hope it works.

BTW . . . I may just claim bankruptcy.

Thanks again.

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Guest usctrojanalum

OK, process servers have 120 days to serve process before the plaintiff has to ask for an extension. So like anything in life, if you give someone four months to do something, they do not go out and do it the first week they get it.

I would keep an eye on it but realize it is possible you may get served sometime in August. Also to protect against "sewer service" the Courts in NYC will send you a letter after the plaintiff files their affidavit of service regarding the summons and complaint, which basically States there is a lawsuit filed, the plaintiff says that they have served you and you have a right to seek legal counsel etc etc.

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Thanks Usctrojanalum! :)

The NY Court databases have a notification system that will e-mail the defendant when ever anything is updated or added to the case index. I registered there in hopes that I will be notified when they add an appearance date.

Not bad eh? ;)

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Well, guess what? Here it is . . . I've been served!

After receiving a reply from my request for validation, I Received a Summons & Complaint from the same law firm representing Discover Card.

It says I am to appear in the Civil Court of NY (gives the address) at the office of the clerk within 20 days to file my answer.

I have no income other than monthly Social Security which is direct deposited to my bank account. I have two other Credit cards that are in default and have sent verification letters to their CA's with no response over several months. I have a foreclosure in the process and therefore my credit is totally tanked.

How should I answer the Summons? They claim (in the letter) to be a Debt Collector. There was no questionnaire included.

Any help would be appreciated.

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Yes, Discover Bank and CapitalOne (people refer them as Crap1 on this forum) are known for suing, rather than selling the debt to a JDB.

DIscover Bank sued me. I am filing my response this tuesday morning. You might see my thread http://www.creditinfocenter.com/forums/there-lawyer-house/312052-im-gonna-get-sued-discover-guglielmo.html

I don't know what you mean about a survey. Any "surveys" are not required by any laws. (EDIT: i meant to say "questionnaire")

They have done everything they legally can, so far, from your description.

At this point, your options are:

1) learn how to do your own legal battle (pro se). That's what a large part of this forum is dedicated to.

2) hire a lawyer to fight this.

3) ignore it (strongly recommend you do NOT do this, as they will get default judgement, aka an automatic win)

In options 1&2, you have a very limited amount of time to reply. Usually it says on the summons how much time you have (ie 20 days from the day after you were served, or whatever your summons says). Usually weekends and holidays count as part of that time, so don't waste time especially if you want to track down a lawyer. Usually it takes time to get an appt and go see them, and they need time to draft a response.

Edited by scarab
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The reason the "debt collector" phrase was included is because the law firm representing Discover is probably a debt collection law firm. As a result, they include that phrase in order to comply with the FDCPA and protect their tushies.

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go down to the courthouse in person to answer, they have forms there where you can just checkbox off some defenses. at the very least it will get the case on the courts calendar and will buy you time.

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Please help me, I have been reading but I am so confused what to do next, any info helps. I received the same letter- you have until the 31st to respond. I responded with an offer to settle on the 27th. IF we dont hear from you we will turn it over to an attorney. I have the green post card to prove it.

I haven't gotten anything in the mail until today. A letter from Zwicker and a$$. It said Discover hasn't decided to sue yet. But I have 30 days to dispute the debt and basically then they will. My intent really was to settle at a low amount, I owe 6k (just on this one) Apparently they dont want to, I dont want to be sued. I dont want to file BK but I will in order to stop it. What do I do now? I see that I may have the option for arbitration but Im not sure I qualify and if that is the next best step. Please please someone advise me what to do next and my options. Thank you

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