buckinghamnicks

Notice of Intent to File Civil Lawsuit

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I am asking for advice on what I should do, as I've never been in this situation before and don't have any idea what I'm supposed to do for the best of the situation.

 

I live in Texas. I defaulted on a credit card about 3 years ago because I did not have money to pay it. I received a "Notice of Intent to File Civil Suit" from a law firm here in Texas in order to collect the amount owed. They state the next correspondence I will receive from them will be a copy of the lawsuit. My choices for settlement are to pay the debt in full (2,433), make monthly payments of 153, or "call our office."

I have read I should not call, but rather write so that I have proof. However, would it be better to call to see if they would be willing to lower the settlement amount? I have not done a debt validation - although I don't know if it's worth mentioning that at the top of the letter they say my amount owed is 2764 and then further down they say it's 2433. I have a prior notice that says amount owed is 2741.I don't know if that helps with a case when they don't have their facts straight.

In any case, what SHOULD I do now? Any help would be appreciated. Thank you.

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Is it the OC (original creditor), a CA (collection agency) representing the OC or a JDB (Junk Debt Buyer) that is trying to collect from you?

 

If your not sure just state the name of the company and that will help others help you. We have a lot of members from Texas that are very helpful here!

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LVNV is a JDB. They "purchased" your account for around 50.00 along with several hundred/thousand other accounts. More than likely all they have is your name, account number, address and phone number. Most of these accounts are sold so cheaply that they rarely get any other info other than a maybe a copy of an old statement. Not to mention HSBC is now owned by Capital One and the odds are they will have even less information.

 

That being said you need to know what to do legally to beat them. They depend on people giving in and getting default judgments when they sue. Most people never challenge them and its easy money assuming they can collect. When they are challenged the only way they can win is by legal procedure which is not the same thing as having the evidence needed to win. 

 

LVNV is a company owned by the Sherman Group. They own several collection companies and regularly try and collect on the same accounts using more than one company. If you have received letters from any of the following its all the same company. This list changes from time to time and most of these companies are nothing more than a P.O. Box. Many have zero employees and no real property.

Sherman Financial Group LLC
Sherman Capital Markets, LLC
Sherman General Partner SPE, LLC 
Resurgent Capital Services, LLC
Alegis Group Loan Servicing, LLC
Sherman Investments SPE, LLC
Sherman Originator LLC
Sherman Holdings LLC
Bailey Holdings, Inc.
Sherman Acquisition L.L.C.
Sherman Acquisition TA, LP
Sherman Acquisition II LP
Sherman Acquisition LP
Alegis Group LLC
Alegis Group L.P.
Nassau Mortgage LLC
Ascent Card Services, LLC
Sherman Acquisition II General Partner LLC

Anson Street, LLC
Ascent Card Services II LLC
Ashley Funding Services LLC
Credit One Bank, N.A.
Credit One Financial Solutions LLC
Fieldstone Asset Management LLC
Granite Asset Management LLC
Limestone Asset Management LLC
LVNV Funding, LLC
PYOD LLC
SFG REO, LLC
Tradd Street LLC

 

They also hire additional CAs to collect debt on a commission basis. They are notorious for violating creditor's rights under the FDCPA. These include illegal call activity, adding interest and fees that they can not legally collect and disclosing detailed information to third parties not involved. For this reason keep every letter they send you including the envelopes and keep any messages they leave for you in a safe place. This information may come in handy in case you need it for legal reasons in the future.

 

I can't stress how important it is not to call or talk to them on the phone. Rarely will anything come out of this that will help you. Sure they will cut the amount if that is what you want to do because they realize anything is better than nothing. Even with administrative cost they probably only have a 100.00 - 150.00 invested, so anything over that is profit for them. 

 

I would just wait it out and see if they go away. If they don't you can fight them. Texas does have laws that makes it difficult to collect even on judgments, so it doesn't give them much incentive to spend too much on you. I'll let the Texas members comment on state specific law. 

Good Luck! 

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@bmc100 - No, there is no time table given anywhere on the letter. It simply says "We have decided to file a lawsuit against you. If we do not hear from you, the next correspondence you should expect to receive from us is a copy of the lawsuit. This matter can be settled. Settlement options are...." (I listed those). Additionally, what is a FDCPA claim?

 

 

@ArtVandelay - Thank you for your reply. I take you at your word to not call them. Should I not send a debt validation request? Maybe my time to do so has already passed. I don't even know if it would help. Also, I can't figure out how to edit the title. I will keep trying to do so... thanks for the tip.

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The letters that you received have conflicting amounts allegedly owed to this JDB. That on its own may be enough for a FDCPA violation or it shows that they are tacking on post-chargeoff interest to the account, which is a big no-no!!

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You can send a debt validation letter at any time, although its really only helpful if you do so within the first 30 days of contact. When you send it during the first 30 days the collector has certain rules they must(should) follow. Sending it after this time will only let them know exactly where you live and that you are alive. This may or may not motivate them to sue. Some get a DV and just quit while others sue the second they receive it. 

 

Any time you communicate with them for any reason always send letters CMRR through the USPS. That way you will have proof it needed in the future. 

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Do not contact them unless you desire to send a debt validation letter.  That could lead to an FDCPA violation if they call you or send you anything else before responding to the debt validation.  It is also a violation if they threaten to sue you and then fail to do so. 

 

Wait and see if you are actually served with lawsuit papers.  Do not call them (or any other junk debt buyer) under any circumstances.

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Do not contact them unless you desire to send a debt validation letter.  That could lead to an FDCPA violation if they call you or send you anything else before responding to the debt validation.  It is also a violation if they threaten to sue you and then fail to do so. 

 

Wait and see if you are actually served with lawsuit papers.  Do not call them (or any other junk debt buyer) under any circumstances.

Within a reasonable period of time.

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Read my thread on Texas info. Make sure that if you contact them that you CITE TX FC-392. Do this in all communication to them. TX has bigger teeth than the FDCPA. Use that instead. The TX SOL is four years from DOFD, after that they can not sue you. Try and drag it out until your past the SOL. Also, get on here and read day and night until you learn the correct things to do or not due. You might also hit them with arbritration, that could make them run. Read Linda7's thread on arb.

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In Texas you CAN send a DV anytime and they must respond as long as you cite the TFC-392. Again, the TF-392 has way more teeth than the FDCPA, so ALWAYS cite it. Are you judgement proof? Are you on any kind of disability? If so, your pretty much safe. In TX the can not garnish your wages or clean you out. TX is very debtor friendly, so don't have a panice attack.

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. I don't believe I am judgement-proof, since I don't even know what that constitutes, I am not on any kind of disability - unless you count food stamps and medicaid because I'm so poor (lol... kinda). 

 

Don't use this type of thinking with ANY aspect of the lawsuit, the bottom feeders rely on it. You are going to have to do a lot of research & check your sources. Good Luck.

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So, I just wanted to follow up with those of you who may be interested.... I went ahead and sent a Debt Validation letter, basically I just used a pre-written form I found online and then adjusted to include Texas Finance Code 392. I received the following response about a week later:

 

"Our office received notification of a dispute regarding the above mentioned account. For us to properly address your concern, we will need more information in writing about the nature of your dispute. Please contact our office at (phone number)."

 

So.... I am seeking advice on what I should do next. I will not call them. They mention they need "more information in writing..." so why didn't they tell me what information they need and I can write back to them. Also, in my debt validation letter to them I was very precise on what information I needed to be provided by them and they didn't give me any of that, just simply the response I quoted above.

 

Now, since they didn't technically answer my letter, what does that mean from this point on? Do you think they will let it go or will I hear from them again? Does the fact that they didn't respond to my request for information give me any leeway? 

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Iwould prepare a suit over fdcpa for failure to comply, that letter is letter is an attempt to weasel out of the fdcpa requirements. I bet if he does send them a more definite letter they will send him a letter that says that the second letter is not enough information either. 

I know what kind of letter I would send at this point,,,,,,,,,BUT

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@buckinghamnicks

 

Hi, there.  I just wanted to mention a couple of quick things to you.  I'm in a similar situation, currently being sued by a JDB.  Not to scare you, but don't trust that they will comply with the law by having a Complaint served to you by a process server.  In my case, I found out that I was being sued only after a legal firm read my Case Summary while fishing for clients and offered to represent me.  What many JDBs will do is claim that they tried to serve you when they didn't, in hopes of getting a Default judgment against you before you even know you are being sued.  Don't let this happen to you!  If they file a suit, you will need to respond to it quickly, as the Court limits your time to file an Answer to the Complaint.  Also, the Court will want a fee from you for doing this (in my case, they wanted a couple hundred bucks).  Imagine it!  Having to pay for the right to defend yourself!  This is one of the reasons that these leeches get Default judgments so often and so easily - the working poor don't have the money to even get their defense started.  This is also very important to them, since many know that they do not possess the proper documentation to win in Court.  BUT, given the financial situation you mentioned, you can ask to have the fee for filing an Answer waived.  I did and it's a very short form (1-2 pages).  You should qualify if you are on any kind of Public Assistance.  Good luck and don't give up!  :-)  

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