Portfolio Recovery- SECOND NOTICE: Account transferred to litigation... what to do?

[DarkR166]

Hello,

 

I got a letter from portfolio recovery association stating  SECOND NOTICE: Account transferred to litigation with the amount of $755. The debt was from a credit card i opened when I was a fresh 18 years old and figured my mom would handle it but didnt so it went to a debt collector. I was told since its was already sent to a debt collector, my credit has taken the hit and paying the debt would do nothing in helping my credit. So ive ignored many calls they would make to me.

 

I know $755 is a small amount of debt compared to other on here but with me working part-time and paying for my own tuition at a university... im somewhat tight on money especially for unexpected amounts like this. The first piece of mail they sent me offered a payment plan to pay the debt but since ignored that, they sent me this 2nd notice.

 

My question, what steps should I take to handle this? Is there a real likely chance that they would take me to court to sue me for the $755? Would the best thing to do is find that lump sum of money and pay it off to get them off my back? I have until the 22nd to respond.

[Clydesmom]

Before you do anything:  WHEN is the last time you made a payment on the account?  The reason is TX has a very short SOL compared to some states and if it has expired you have an iron clad affirmative defense.

 

To answer your question:  YES PRA will sue you over that small amount.  They are one of the top five bottom feeders.  

[DarkR166]

I opened the card in 2008 with a 1k limite... so im guessing the last payment might have been in 09

[spacemandave]

Get a free credit report (www.annualcreditreport.com).  You can then get a better handle on your date your last payment.  Texas has a four year Statute of Limitation for them to sue.  It is important to to determine when you made the last payment.

[Clydesmom]

I opened the card in 2008 with a 1k limite... so im guessing the last payment might have been in 09

 

2008 is great now or 2009 is good if PRA waits until after the first of the year to file.  Do this:  Texas has some rigid consumer laws regarding debt collection.  You can invoke them at any time.  Send PRA a debt validation letter right now certified mail return receipt invoking the TX debt collection laws on DV.  This should buy you some time and slow them down.  

 

In the mean time confirm when the last payment was made through your bank or your mother.  (she may have made payments longer than that) and if it is really 2008 then find a consumer attorney.  Threatening to sue you on an account that is beyond the TX SOL is a violation of the FDCPA and not only will you not be paying PRA but they will be paying you $1000 in statutory damages along with your attorney fees.

[DarkR166]

ok so i checked the annualcreditreport and the last OK payment date was August 2008

 

[Clydesmom]

ok so i checked the annualcreditreport and the last OK payment date was August 2008

 

 

FABULOUS.  Go to www.naca.net and find a consumer lawyer in Texas and set up a consultation.  Most do the first one for free.  Have that letter they sent you stating the case was in "pre-litigation" and the one that says they are going to sue you.  Texas has a 4 year SOL and PRA just violated the FDCPA.  SUE THEM.

[Rogue198]

Just clarifying here:

 

The last payment made (period!) was August 2008 or the last payment that was ok (at least minimum due & on time) was August 2008 and more payments have been made since that were not on time or at least minimum due.

 

Edit: If the first, then @Clydesmom is right, get a hold of a lawyer and start planning on how you're gonna spend your $1000 damages check.

 

If the second, when was the last payment of any amount?

Edited December 2, 2014 by Rogue198

[debtzapper]

@DarkR166

 

Jerry Jarzombek is one of TX's finest consumer lawyers.  Other OPs on this board have used him.  He is located in Ft. Worth but will handle FDCPA cases all over TX.

 

 

Jarzombek Law PLLC - Home

www.jarzombeklaw.com/

•  
•  

 

The Law Office of Jerry Jarzombek, PLLC, is a professional and experienced firm located in Fort Worth with the legal expertise to assist you in matters of ...

1 Google review ·  Write a review

 

855 Texas St #140, Fort Worth, TX 76102
(817) 348-8325

[DarkR166]

@Clydesmom Sweet ill check this out!!!!

 

 

 

@debtzapper Thanks for the info!!!... do u happen to know if he does the first one for free as clydesmom said?

 

 

 

I forgot to add... I think LVNV first had the debt and then it got transferred to PRA in 2012... does that change things?

[Rogue198]

Only thing that matters on SOL is date of last payment, not who owned the account & when they acquired it.

[DarkR166]

ok cool great

[debtzapper]

@DarkR166

 

Mr. Jarzombek and most any other consumer lawyer will give you an free evaluation of your case.  If you have a valid FDCPA claim, they will usually take your case on a contingency basis, meaning they will get their fees paid by Portfolio is they win your case.  I would call him.  If he takes your case, great.  If not, call at least two or three other consumer lawyers from TX at www.naca.net

[1stStep]

I agree - you've got a beautiful FDCPA violation...

[DarkR166]

@DarkR166

 

Mr. Jarzombek and most any other consumer lawyer will give you an free evaluation of your case.  If you have a valid FDCPA claim, they will usually take your case on a contingency basis, meaning they will get their fees paid by Portfolio is they win your case.  I would call him.  If he takes your case, great.  If not, call at least two or three other consumer lawyers from TX at www.naca.net

Does anyone recommend someone else? I contacted Jerry and after a few back and forth emails he had stopped responding :/

[Clydesmom]

Does anyone recommend someone else? I contacted Jerry and after a few back and forth emails he had stopped responding :/

 

Go to www.naca.net and search there are plenty in Texas.

[debtzapper]

@DarkR166

 

Clydesmom is correct.  I had to contact FIVE lawyers before I got one to take my case.  Lawyers have different reasons why they won't accept a case. It does not reflect on the validity of your claim. You have to keep trying,  You can also just google search for a consumer lawyer  ( "Houston credit card lawyer" or "San Antonio FDCPA lawyer").  Steer clear from lawyers that say on their website that they do debt relief or bankruptcy.

[debtzapper]

@DarkR166

 

If you live near Houston, the U of Houston Law School runs a consumer law clinic for low income individuals.  Law students represent clients but they are under law school faculty supervision.  Phone number is at bottom.

 

 

 

Consumer Law Clinic

Consumer Law Clinic Director and Associate Clinical ProfessorRichard McElvaney

The Consumer Law Clinic is one of the few of its kind in the country.  Law students learn the law by a mixture of theory and actual hands-on experience representing low-income clients in Justice Court, County Court, and District Court.  Cases include claims under the Deceptive Trade Practices Act, as well as credit and debt-collection problems and landlord/tenant complaints.  The Consumer Law Clinic has a classroom component that meets for two hours a week for 14 weeks for a total of 28 hours over the course of the semester. 

The classroom component provides students with an overview of the law in the areas of law office management (office procedures), interviewing, negotiations, litigation, pretrial and trial procedure, evictions, landlord/tenant law, real estate transactions, home equity loans, consumer law (including DTPA), debt collection, Texas exempt property, community property, bankruptcy, intestate succession and wills.  The classroom component meets on a flexible schedule determined each semester by the class schedules of the clinic students.

The Consumer Law Clinic is a 3 or 4 Unit graded course. Prerequisite: Good Academic Standing.

All students accepted into the Consumer Law Clinic must attend a mandatory ½ day orientation on the Wednesday prior to the beginning of classes.

Click here for the application.

For more information regarding the Consumer Law Clinic contact Rick McElvaney, RMcElvaney@central.uh.edu 713 743-1236.

[debtzapper]

Directory of Legal Aid Clinics in TX:

 

 

http://texaslawhelp.org/find-legal-help/directory?page=1

[DarkR166]

I know i should be on this ASAP but being stuck doing final exam for school and work... the due date is the 22 (next monday)... should I be worried if i dont contact PRA by then?

[willingtocope]

"Transferred to litigation" is CA-speak for "you better hurry up and pay or we're going to think real hard about how else we can get you to cough up money".

 

It unlikely that the "deadline" means anything...but...you probably shouldn't ignore it and hope this is going away.

[DarkR166]

So I got a law firm who responded to my emails and has agreed to take my case but a fee is required upfront. $250 to send a verification of the debt letter and collection prevention. If they decide to sue me it will be another $250 ($500 total) to represent me where they would seek dismissal of the case and recover money for me IF infact they violated the FDCPA.

 

Ive never really had to deal with a lawyer directly so im not sure if I should go on with this. I was hoping I wouldn't have to pay anything until after I got the case dismissed/win the case. I feel like im running low on time to get this taken care of before im taken to court... what would you guys do?

[Rogue198]

Personally, I'd keep searching.  Based on what you've told us, if you're sued, you've got a FDCPA violation and will be able to find an attorney who will take the case on contigency.  I'd say use a few more free consults, see if any believe you've got any violations to sue on yet or have to wait to see if they sue first.

 

Of course, you have to decide what you feel is best for you.

[Bond007]

I wish I had found this site a couple months ago.

 

I'm in Kansas. Cant afford an attorney. On S.S. Disability and own my home, and two cars (one I am making payments on) and don't want them to slap liens on the home. The summons has my name on it only, not my wife. The only monies that go into the checking account are the Disability checks.

 

I have already received my second notice and they sent a summons. I have been racking my brain and burning up my motherboard trying to do something about this summons.

 

I have filled out my answer, which is due to be filed on the 18th of Feb. I have DENIED all allegations mainly because the credit card number on the summons does not match the card number that I owned. I know that is true because I found an old card in my safe and some statements from 2012 with my cards number on it.

 

The first thing I did was file a Motion to Strike Affidavit. Which was attached to the summons, from their CoR. I will wait till the last day to file the answer and notice to appear.

 

I don't know what I am doing so any help would be sincerely appreciated.

 

I think the SOL in Kansas is 3 years. and I made the last payment in November of 2012.

 

My Lawyer that I used on some of my moms estate planning, told me to just show up in court and have judgment passed then ask the judge for a $20 a month payment plan. That seems Ludacris, since it will take like 56 years to pay off. 

[Rogue198]

Welcome, to get best personalized advice, start a new thread & answer the questions pinned to the top of the forum, we'll see what we can do to help you.