Sign in to follow this  
RyanEX

Collection attempt on CC debt previously discharged in BK

Recommended Posts

A family member received a letter from a JDB that is attempting to collect on an old CC debt that was included in their Ch7 bankruptcy. This is an initial contact with the proper language/disclaimers.

 

Quick rundown

- JDB is Jefferson Capital Systems (first I have heard of this particular outfit, possibly related to RJM Acquisitions)

- Recently purchased the debt (no date given)

- CC Debt, around $2-3K, last paid in 2009

- Discharged in BK CH7 in 2010

 

I've read the attempt to collect on BK discharged debt may be a violation of FDCPA Section 807: "(2) The false representation of (A)  the character, amount, or legal status of any debt." Even if so, not interested in pursuing anything legally, they just don't want to deal with garbage like this, hopes to not have to deal with this debt being sold again & someone creating a trade line over it.

 

What is the best response? I haven't found anything specific for this in the CIC (so far), and only a few related items elsewhere. The recommendation seems to be to send a letter informing the JDB that the account was discharged, to cite the case number of the BK, and instruct them to cease collection efforts. Is this enough? Include any pages from the BK?

 

 

 

 

Share this post


Link to post
Share on other sites

Not only is a violation of the FCDPA but is violates Federal BK laws.  Their next step is VERY simple:  they call a NACA attorney and hire them to file a lawsuit against Jefferson Capital.

 

Jefferson is a bottom feeder that more than deserves to be sued.  They hire equally disgusting law firms and threaten consumers.  I beat them back with a consumer attorney and the BBB.  

 

Have your family member go to www.naca.net and simply hire a consumer attorney.  

 

OR I would send them a letter stating that the debt they are attempting to collect on was included in BK in 2010 (court case number) and by sending the letter they are in violation of the FCDPA and the discharge of the BK court.  They can settle the matter right now by mailing a check for $1000 for the violation or we can proceed to Federal Court.  

 

Option 2 might net a quick check if not they can simply sue.  

  • Like 1

Share this post


Link to post
Share on other sites

Thanks. I mentioned to (my sister) that there was probably a violation that she could pursue, but she shut down that line of thinking right away. Too much on her plate already I think, she just wants to get this out of the way as quickly/quietly as possible. I'll mention it one more time (looking up a NACA attorney). It does worry her that this will simply get sold again and she'll end up dealing with some other JDB and a possible tradeline; the result of legal action could always include some stipulation that it not be sold again.

 

At the very least I'll recommend including the "settle the matter right now by mailing a check for $1000..." line into her letter. On it's own it might be a long shot, but who knows. At minimum it can serve as a nice exclamation point to the letter.

Share this post


Link to post
Share on other sites

Make sure she knows that by simply sending the letter stating they can settle the matter right now for the statutory $1000 and how would they like to pay?  If they do not there is no effort on her part to turf it to a lawyer who will simply handle the entire matter, bill Jefferson for their fees since the FCDPA allows for that, and then send her a check.

  • Like 1

Share this post


Link to post
Share on other sites

Not only is a violation of the FCDPA but is violates Federal BK laws.  Their next step is VERY simple:  they call a NACA attorney and hire them to file a lawsuit against Jefferson Capital.

 

 

 

Have your family member go to www.naca.net and simply hire a consumer attorney.  

 

 

If true, I think just about any NACA attorney that does this work would take the case on contingency (you don't pay).

 

If you really don't want to sue, have your bankruptcy lawyer write a letter.  It is a violation of the Bankruptcy code to try to collect on such a debt and the letter will be a scary one to the recipient.

  • Like 1

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this