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Judgment from Cach LLC for Bank of America - represented by another CA?


Elorra
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I am in the process of straightening out my credit now that my financial situation has improved. A default judgment was placed against me for $6,030 by Cach LLC for Bank of America in 8/2009. I live in GA.

I am confused about a few things. I got a letter dated March 1, 2011 from Frederick J Hanna and Associates, Attorney at Law saying that they represent "Cach LLC Assignee of MBNA America Bank," and that they wanted to discuss settlement options for the amount of $7,791.70.

I then got another letter from Fredrick Hanna dated June 17, 2011 trying to collect on a balance of $7,449.47. In this letter they say a payment of 35% of the current balance will be accepted by August 30 as payment in full. Why are there two different balances, with the earlier one being less??

First off I'm confused as to why Frederick Hanna is sending me letters. I know collection agencies buy debts, but a collection agency representing a collection agency (Cach LLC)? It's strange.

The judgment is on my credit report, the collection from Cach is on my credit report and of course the original account from Bank of America that was charged off is on my CRs. I tried to remove with the CRAs but no luck. I want to pay this and move on with my life (I don't want the judgment to be renewed). I don't think vacating with payment is even possible? I cannot afford to pay the whole amount. Thirty to forty percent of the balance would be the most.

I thought I could just negotiate a settlement with Frederick Hanna since they had earlier already offered 35% even though it was past August 30th so I decided to give it a try. It did not go well, lol, when I called them. I think I made a mistake in calling. We did not even get to discussing the judgment and settlement. She had an attitude from the get go in just pulling up my information and it ended with me saying I didn't want to take this any further and she hung up on me.

Where should I go from here?. Should I just get a lawyer? Do I even have to contact Frederick Hanna? I was thinking about calling Cach to see if they still have my account but hesitate after today's debacle.

Guidance would be greatly appreciated on how to handle this! I'm kind of lost.

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Get an attorney for what?

They already have a judgement. The reason the amounts keep going up is interest, probably at around 10%, is being added.

It is very common for CA to represent one another. Basically what happened was you got a judgment against you and they creditor farmed out the collection of that judgment to another collection agency. It can look or sound confusing but it's pretty common.

Bottom line is there is a judgment against you. Your leverage and calling the shots goes way down. Not all the way down, but a lot of what you see posted and the thumbing of the nose to the creditor (a ton by me I admit) won't work in this situation. They already have the judgment. That changes things big time.

I would do letters and not over the phone if I was going to settle this. You want an iron glad agreement because they really have the upper hand right now.

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Get an attorney for what?

To handle the settlement. From talking to they lady on the phone I don't think it would go well. But I guess I could try letters like you said and go from there.

Also,I understand that there is interest, but the second amount was lower than the first. The second was two months later -- why would it be less if interest is accruing. If they are submitting different amounts how I am I supposed to figure out what I really owe.

Edited by Elorra
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Get an attorney for what?

To handle the settlement. From talking to they lady on the phone I don't think it would go well. But I guess I could try letters like you said and go from there.

Also,I understand that there is interest, but the second amount was lower than the first. The second was two months later -- why would it be less if interest is accruing. If they are submitting different amounts how I am I supposed to figure out what I really owe.

On your credit report, where you see the tradeline indicating the judgement, you will also see a case number and a courthouse name. You can go to that courthouse (or fax or write) and ask for a photocopy of the case file.

In that file, you will see a complete breakdown of the final judgement -- how it was calculated (based on the amount demanded) as well as fees, interest and other writs filed that may affect the balance of the judgement. Bust out a calculator and start doing the math. Spreadsheets help! Use them!

This gives you your FIRST number: According to the court documents, you owe $X.XX as of this date.

If you choose to engage them in writing, I would first take issue with the amount the collectors allege the debt is, if it varies substantially from the amount the court docs say you owe.

If you want to settle, I'd recommend offering a specific dollar amount that you can pay *that day* once you get a formal settlement letter specifying the actions the creditor will take , then they will take them, that the tradeline will be dropped from your credit reports within X number of days. The pickins are slim, even for debt collectors, so they may go for it. Be prepared to negotiate. (Don't get verbal diarrhea when you do negotiate. Carefully consider what you're saying. Don't get thrown off by whatever the person on the phone throws at you)

I think you may be too late to do this, but I'll throw it out there for other people with similar judgment issues anyway. You can vacate the judgment. If you were not properly served, AND default judgement was entered against you, you can vacate the judgment within a specific period of time. Usually it's 2 years. (PLEASE CHECK YOUR STATE'S STATUTES ON THIS.)

If you check and YAY! You can vacate the judgment, by all means, please try. Vacating a judgment does get it off your credit report, but it does not get rid of the debt. The person who sued you can still go after you, and likely will. Vacating just opens up the court case for a second look, in a nutshell. Vacating a judgment does give you a second chance to defend yourself, and it is likely you will win if you do decide to defend yourself this time round.

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What do you mean when you say your financial status improved? These sharks will be watching and will get a writ of execution on you in a heartbeat. Look up your state laws concerning homestead exemptions for judgment collection and wage garnishment. They can take just about anything you own. You let Cach LLC get a judgment against you? How did that happen?

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I don't know if vacating could be an option in my case. Even though I didn't live there are the time, I think my mom accepted the summons for judgment at her house. I don't totally remember though because that was such a bad time. I will definitely get the judgment paperwork. Will it say who signed for the summons? Also, if I did try and vacate should I wait to try and negotiate the debt till after I try vacating? I am going to have to research this more to see if it would even be possible.

I was so beat down with health problems and financially struggling at that time that I just let the judgment happen; I wasn't in a place to deal with it or even care. I had bigger things to worry about.

I am self employed so they can't garnish my wages. Also, I rent and don't own a house so there isn't anything to really take. I mean they could try and hit my bank account but I don't keep a lot in it. Just enough to pay bills. I was really sick so every penny (and it wasn't a lot) went to my health care (including this amount from MBNA). I haven't even filed taxes in the last couple years so I don't think they can even figure out how much I am making. But I am currently trying to get my taxes taken care of since my health and finances have improved.

I also just want to say thanks for the advice. This is such a great place. Thank you all for giving your time to help me! I appreciate it more than you know.

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