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Collection Agency wants difference between Original and Settled debt/


planetdave
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Need some advice on a collection.

Barclays Bank is original creditor. I owed them $1,867.02. They hired/sold debt to Jefferson Capital Systems. They hired/sold debt to Velocity. Velocity hires/sells to Dynia & Associates who offer me a settlement offer of $560.11.(as per their letter which states"we are offering you an opportunity to resolve your current balance of $1,867.02 for only $560.11!!!). The letter clearly shows the current balance and settlement offer amounts with those exact words. I agree to 2 payments to cover the settlement amount. They debit my bank account and I assume all is finished.

Jefferson Capital Systems has now retained the Law Office of Edwin A. Abrahamsen and Associates to collect the unpaid balance of $1,306.91(Original debt of $1,867.02 less what I paid Dynia of $560.11). Can they do this? BTW, I live in New Jersey. Any help or advice is greatly appreciated.

Thanks,

David

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First of all, this debt was sold so many times that there was probably no way they could have provided any proof as to who owned it. You never settle with a JDB as you can see, you wanted to do what you thought was the right thing to do and it came back to bite you in the a$$. The JDB that you paid now has 560.11 of your money and then sold the debt to another JDB for 1306.91

You never let them make the terms, you make the terms. What you should have done is when you received the settlement offer you should have called Dynia & Assoc and say you want settlement, well I agree to the 560 and this is how we are going to do it. Cashiers check only for two payments and you make them write a letter saying they will not resell the acct ever and that it will be paid in full when last check is received and you don't pay a dime until you have that letter.

You made a mistake and now Dynia & Assoc is 560 richer and you are 560 poorer. The only thing you can do is let the other JDB try to sue you and then go to court and show the letter from Dynia and the check acct statements showing the withdraws. Also never give a JDB you banking info.

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Need some advice on a collection.Barclays Bank is original creditor. I owed them $1,867.02. They hired/sold debt to Jefferson Capital Systems. They hired/sold debt to Velocity. Velocity hires/sells to Dynia & Associates who offer me a settlement offer of $560.11.(as per their letter which states"we are offering you an opportunity to resolve your current balance of $1,867.02 for only $560.11!!!). The letter clearly shows the current balance and settlement offer amounts with those exact words. I agree to 2 payments to cover the settlement amount. They debit my bank account and I assume all is finished.Jefferson Capital Systems has now retained the Law Office of Edwin A. Abrahamsen and Associates to collect the unpaid balance of $1,306.91(Original debt of $1,867.02 less what I paid Dynia of $560.11). Can they do this? BTW, I live in New Jersey. Any help or advice is greatly appreciated.Thanks,David

NO they can't do this. First: Dynia and Associates is a law firm that Jefferson hires to do their bidding. They did not buy your debt. This is a FCDPA violation because settled is just that: settled. Once you settled with the law firm Jefferson hired that was it. Jefferson is trying to get two bites at the apple and it is a violation.

However, I disagree with mopman that there is nothing you can do. I too dealt with Jefferson and Dynia though I got away for ZERO dollars and the trade lines were removed. Here is what you do: you immediately file a complaint with the Consumer Finance Protection Burea and the BBB in Minnesota where Jefferson is headquartered along with the Bar Association in the state where Abrahamsen is for violations of the FCDPA. Then you go to www.naca.net and find a consumer attorney to turf this to to sue all three of them and collect a check.

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First of all, this debt was sold so many times that there was probably no way they could have provided any proof as to who owned it. You never settle with a JDB as you can see, you wanted to do what you thought was the right thing to do and it came back to bite you in the a$$. The JDB that you paid now has 560.11 of your money and then sold the debt to another JDB for 1306.91You never let them make the terms, you make the terms. What you should have done is when you received the settlement offer you should have called Dynia & Assoc and say you want settlement, well I agree to the 560 and this is how we are going to do it. Cashiers check only for two payments and you make them write a letter saying they will not resell the acct ever and that it will be paid in full when last check is received and you don't pay a dime until you have that letter. You made a mistake and now Dynia & Assoc is 560 richer and you are 560 poorer. The only thing you can do is let the other JDB try to sue you and then go to court and show the letter from Dynia and the check acct statements showing the withdraws. Also never give a JDB you banking info.

 
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Don't feel bad because this happens to people more than you will ever hear about. At this point I would not spend any more time dealing with these people on your own. As stated above you may have an FDCPA violation and if you do you can sue them and get some or all of your money back. Don't waste your time with just a general attorney or even just an average consumer attorney. You want to speak with an attorney that has FDCPA experience and a track record to back it up.

You can look for one on your own or contact this firm. http://www.philipstern.com/about_us.html

I do not know them personally, but they do have a good solid reputation for people in your situation. If they think you have a winnable case I would hire them and sue in Federal Court. Most of these guys do not charge to review your case and if you win/settle they should be able to get your debt cancelled and have your trade lines deleted.

Just stop playing nice because your opposition will only continue to take advantage of you. IMHO

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The statement from Dynia shows Velocity Investments as the current owner. The letter I got from Velocity stated "Velocity Investments, LLC has been provided this matter to collect on behalf of Jefferson Capital Systems". Has Jefferson insulated themselves(and screwed me) by having Velocity between themselves and Dynia? Do they legally have a claim to the balance?

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The statement from Dynia shows Velocity Investments as the current owner. The letter I got from Velocity stated "Velocity Investments, LLC has been provided this matter to collect on behalf of Jefferson Capital Systems". Has Jefferson insulated themselves(and screwed me) by having Velocity between themselves and Dynia? Do they legally have a claim to the balance?

 

This is not an answer to your question above, but I can't stress enough how much you need professional representation. Since you have already gave them some money they will not let up. Giving them money so easily is like blood in the water and now the sharks are circling around for more. Many times you might be dealing with several different "companies" that all have the same parent corporation. Once again I would seek legal advice and let them figure it out. If you have a clear FDCPA violation the other side will be paying you and your attorneys.

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Here are a few federal cases against the firms you are dealing with.

http://dockets.justia.com/search?filters=&query=Jefferson+Capital+Systems&noscat=13

http://dockets.justia.com/search?parties=Velocity+Investments&noscat=13&cases=mostrecent

http://dockets.justia.com/search?parties=Dynia+%26+Associates&noscat=13&cases=mostrecent

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If you have the letter and proof that you paid the settlement amount, then immediately get thine rear end to a consumer attorney and let them take this over. You will probably get the settled amount back and then some. If they have sued you and an answer is imminent, make sure to file an answer, include accord and satisfaction as the affirmative defense and as exhibits include the letter and redacted bank statements. Also, make sure to include a counterclaim for FDCPA violations and reserve the right to add more affirmative defenses as discovery progresses. The attorney can clean up a timely and proper answer.

Also, get thine rear end to your bank and close down the card/account. They will clean you out.

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I agree with all other posters here, if you have access to an attorney with a great record who will work on a contingency basis, by all means DO IT! I see whocares said in their last sentence above to get to the bank and close your accounts. That was/is my very reason for replying to you. If they already have a judgement against you, you are playing Russian roulette with your $$. If they haven't sued you, but do and get a judgement against you they most definitely will take everything you have in any account up to 110% over the amount the judgement is for. Don't just close that account and open another at the same bank they will still hit it, they don't need an account number, just your name. Actually, many of these scumbags send (many fax)a blanket garnishment to all banks within an area, hoping to hit one. Any account your name is on they can and will take. If you have a child who perhaps you opened a savings account for when they were born and deposited all the $$ you received as a gift, but since the child was a newborn you put your name on the account also, the scum will take it and the courts will allow it. If you have a child saving for college, but your name is on the account for the same reason already stated, the scum will take it. If you and your spouse share an account savings and or checking, they will take all of it simply because your name was on it... If it is a checking account the bank will seize all the $$ in the account immediately upon receipt of the garnishment order, and then any checks you have out will bounce and the bank will charge you a NSF fee as well. Not trying to scare you, well, yes I guess I am, but trust me when I say, they can and will do all I stated, IF they have a judgement against you. I wouldn't let them get a judgement, I would contact the attorney recommended to you in the above posts.

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Exchanged e-mails with Philip Stern. He is, as promised, an amazing person. Gave me the guidance to persue this on my own without ever mentioning any type of compensation. He even exchanged e-mails over the weekend. I'll let everyone know how it turns out and thank you all for your input and advice.

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