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Chase Charged off alleged debt, Still with OC, will they be filing a lawsuit?


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Ok, I have an alleged debt with Chase, and it is still with them.  It has not been sold to a JDB, and they said it will no longer be collected on by 3rd party CAs.

 

From what I gather, Chase is buried in lawsuits already, and is currently not going after alleged debtors.  My SOL expires next October...what kind of bet would I be taking to just ignore it until that date comes?

 

Do I have a good chance of this passing the SOL, since it is Chase?

 

Thanks again!!

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You should assume that they will sell the debt off at some point. If you feel that they might pursue you in court, then take the time to understand your rights and the burden of proof that a creditor needs to provide in order to prevail against you.

 

If you don't think they will pursue you as the OC, you should take the next 11 months (as SOL approaches) and LEARN how to set up and sue Junk Debt Buyers in Federal Court for violations of FDCPA, FCRA and TCPA.

 

Or a mix of both.

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You should assume that they will sell the debt off at some point. If you feel that they might pursue you in court, then take the time to understand your rights and the burden of proof that a creditor needs to provide in order to prevail against you.

 

If you don't think they will pursue you as the OC, you should take the next 11 months (as SOL approaches) and LEARN how to set up and sue Junk Debt Buyers in Federal Court for violations of FDCPA, FCRA and TCPA.

 

Or a mix of both.

 

Ok, So the long story:

 

I tried to call them and settle.  I explained that I have an alleged debt that I want to settle in lump sum as I don't have the time to deal with it.  I offered them 25%, they said no they wouldn't drop below 50% and I said that wouldn't work.

 

They explained to me that the account is still with them, in their internal "resolution department" and WOULD NOT be sold OR collected on by other CAs.  They actually made it a point to tell me that this debt would NOT be sold to a JDB or handled by ANY OTHER CA other than chase.

 

It was strange the way they said it, as if, they were saying "look we have been getting busted for selling off debts so don't worry, we wont be selling your debt we promise"

 

Was hoping someone had some insight on why they would say this, and if it means I may have a better chance of waiting it out.

 

THanks!!

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I tried to call them and settle.  I explained that I have an alleged debt that I want to settle in lump sum as I don't have the time to deal with it.  I offered them 25%, they said no they wouldn't drop below 50% and I said that wouldn't work.

 

Settling for pennies on the dollar works when you have leverage, typically with JDBs and old debt outside of SOL.  When the debt is still with the OC and they have at least a year to sue you then you have zero leverage to settle for such a small percentage.  

 

Unless you are able to get them to agree to settle the account for an amount you are willing to pay (and now you know their minimum) all you can do is wait it out.

 

It was strange the way they said it, as if, they were saying "look we have been getting busted for selling off debts so don't worry, we wont be selling your debt we promise"

 

Was hoping someone had some insight on why they would say this, and if it means I may have a better chance of waiting it out.

 

Or they are making it clear that they are not selling off debts and will pursue it themselves.  There are some OCs that do not sell and do pursue litigation.  Much depends on how much the debt is and whether it is worth going after.

 

The problem with internet insight is we are only guessing what they will do.  There is NO way to predict how it will go.  While Chase is mired in legal troubles right now that doesn't mean in 6 months things take an upturn and they decide to offset all their fines and legal fees by suing for bad debts.  There is NO way to predict what they will do.

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Chase certainly has a history of pursuing their own debt collection. Will they sue you in the next 11 months? No one can say, it's all speculation.

 

If you do decide to settle, be very careful. If you do settle for 50%, make sure they aren't going to issue a 1099-C for the remainder which you would have to pay federal taxes on as income. Also you need something in writing saying that the payment will settle the debt, otherwise making that payment resets SOL. 

 

From my own experience, Chase is somewhat reasonable to deal with and seems to be willing to work with debtors by accepting reasonable payment plans.

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Ok, thanks everyone for the input.

 

The alleged debt is around 6k.  If they did file a suit would they at that point still be willing to settle?

 

I was trying to knock everything out this year while I am still insolvent.  I have settled other alleged debts this year and am expecting 1099c, however because of insolvency, these should be forgiven.

 

As a side note, I had 2 alleged debts from chase and they settled the first one for 30%.  They said that their settlement low has to do with a variety of facts about the account, and they cant go below 50% for this one.

 

Uuuggg what to do.

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I heard awhile back that Chase has halted sales to JDB's for now until they have a resolution to some other suit they are involved in.  I think it has to do with the interest and accuracy of the accounts they had, in addition that whole linda almonte thing where they had settled debts they sold anyway.  I read this about 6 months ago, but I do not know the status of it, or weather or not they have started to resell their junk debt.

My personal opinion? I would wait it out, if they file on you, they will probably still settle for 50%, you really don't have much to lose.  If they sell it, it will be easier to fight the JDB in court anyway.

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My personal opinion? I would wait it out, if they file on you, they will probably still settle for 50%, you really don't have much to lose.  If they sell it, it will be easier to fight the JDB in court anyway.

 

i agree. if an OC sues you you'd likely have to pay up, if they sell it to a JDB who sues you its game on.

 

id take the chance this close to SOL.

 

depending on the card agreement you may have passed a 3-year SOL this october

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Ok, I have an alleged debt with Chase, and it is still with them.  It has not been sold to a JDB, and they said it will no longer be collected on by 3rd party CAs.

 

From what I gather, Chase is buried in lawsuits already, and is currently not going after alleged debtors.  My SOL expires next October...what kind of bet would I be taking to just ignore it until that date comes?

 

Do I have a good chance of this passing the SOL, since it is Chase?

 

Thanks again!!

Which state's statute for SOL defense is thought to apply CA, DE, or other?

 

Lacking a crystal ball (or a Chase insider) it is very unlikely that anyone can know whether or not Chase will sue. It is possible with the flux in the market even Chase may not currently have a clue whether this may end up with a lawsuit filed against the OP for the alleged debt.

 

Leverage is very important IMHO. The leverage I see here is that the OP has some money and the OC does not. That is still leverage in my world. I would be curious what the explanation is for their statement: "... their settlement low has to do with a variety of facts about the account, and they cant go below 50% for this one."

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Waiting is in your best interest. I personally had an offer from Chase to settle for what amounted to 20% of the total. I verbally accepted however they sold off the debt to Midland Funding two weeks prior to my accumulating the funds to make payment. More then likely Chase will call you or propose a settlement in writing prior to selling or sueing. Chase can only hold the account by law for six months after default and then they must charge it off for either insurance settlement or tax accounting credits. Chase usually sells it off for what ever extra profit they can and take the charge for tax benefits claiming they whole amount.

 

I doubt Chase will sue you as an original creditor so more then likely it will be sold off to a JDB and they will take the action. You might beat the SOL but keep in mind if your dealing with Asset Acceptance they will wait until the last week to sue thus accumulating maximum interest. Don't get false hopes - prepare and study. Learn about your answer denying everything, your affidavit denying any debt, your request for production of documents, your request for admissions, your motion to dismiss in lieu of answer if appropriate, other useful motions to frustrate the Plaintiff defending your self and edging towards dismissal. 

 

HP 

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It is my understanding that Chase is under an agreement with the OCC to not sell off any portfolios of charged off debts until they can fix the internal issues going on there. Further, Chase halted filing suits in their own name to collect on CO debts. They may just sit on this for the time being and send you a nice settlement offer. I know Chase cleaned house with their internal legal team and internal collection agency last year. Earlier this year, they released a statement, stating they are halting selling CO debts to JDBs.

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Been out of commission so just logged back in and Love the input.

 

Some great feedback here and I think I will sit for now, and see where it goes.

 

They did say that they wouldn't even call me to try to collect on this debt, as well as not sell it to any JDB or have any CA collect on it.  It is very strange what is going on here, but I will keep a close eye out for anything from chase.

 

Thanks again everyone you guys rock!

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Any Chase, WaMu or Providian Cases from 2009 till now and new filings they are in violation of the occ consent order and you have a lot of legal options for the suit including multiple areas of damages and attorney fees.  Feel free to contact me at lindaalmonte.com .  Remember I wasn't only the one bank but industry wide multiple banks, debt buyers and attorney networks.  Make sure to also read the Mississippi AG suit and the California AG along with the new Rico Class Action filed in Florida and the two NY Class Actions and more to come.  :)

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Any Chase, WaMu or Providian Cases from 2009 till now and new filings they are in violation of the occ consent order and you have a lot of legal options for the suit including multiple areas of damages and attorney fees.  Feel free to contact me at lindaalmonte.com .  Remember I wasn't only the one bank but industry wide multiple banks, debt buyers and attorney networks.  Make sure to also read the Mississippi AG suit and the California AG along with the new Rico Class Action filed in Florida and the two NY Class Actions and more to come.   :-)

Yes, there are definitely more to come.

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