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texastwostep

Being Sued by Portfolio Recovery...Need Advice

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I am being sued by Portfolio Recovery in the state of Texas for $1685.58 for a JCPenney credit card. Count 1 is Breach of Contract and Count 2 is Account Stated.  I was served today, March 11, 2015 in person.

 

I called the debt collection agency and agreed to set up a payment plan as I do owe this money. I gave them my checking account info and agreed verbally to pay 20% on March 31, 2015, and then the remainder over the next fiscal year to pay the debt in full.

 

The affidavit states that Portfolio Recovery purchased this account in August 2010.  My husband is furious with me because he says that I shouldn't have agreed to anything and that there is a statute of limitations that has been passed.

 

My Questions:

 

1. Should I just continue with the verbal arrangement and sign the papers when they are mailed to me agreeing to pay the debt and proceed to do so? or,

 

2. What are my other options since I have already contacted the debt collector and made arrangements?

 

3. The woman I spoke with at the debt collection agency said I did not need to file an answer with the court that it would be taken care of through them. Do I still need to file an answer with the court and if so, what is the process?

 

Any advice would be appreciated.

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First, you should absolutely answer the complaint. When was the last payment on this account? You will need to know this to determine SOL (4 years in Texas). By agreeing to make a payment, you may have admitted to the debt. I will let those in the know answer that for sure.

 

Whatever you do, do not sign any kind of payment arrangements and cease all communication with the JDB. You need to determine if it is in fact past the SOL. If it is that will be your affirmative defense in your answer. If not, then they paid pennies on the dollar for this debt and, at the very least, you should try to negotiate a settlement for less than the full amount. If you plan to fight this, I wouldn't try to settle. JDBs generally have little documentation to prove up their case and you can attack their standing to even bring the suit.

 

Search threads here by @texasrocker for an answer to your complaint.

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The copy of the JCP bill included in the lawsuit states a charge off of account on 7/16/2010. The affidavit is signed 11/10/2014 and the citation was issued 1/23/2015.

 

Since I did admit to the debt and gave them my checking account info and you suggested not contacting them again, what advice do you have?  My husband wants me to close out the checking account so they don't have access to it.

 

Also, how do I go about filing answer to the citation? 

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That was NOT a good idea to give them access to your checking account. Tomorrow first thing close that account and open another one in another bank. Failure to do so will cause you a lot of grief before long. NEVER EVER give any one your banking info. Close that account and tell them that you will send postal money orders or bank checks on a bank other than the one your banking with. They will fight you on this, but tell them it's that way or not at all.

 

Should you fail to adhere to this advice will one day find your bank account cleaned out. Many on here have found that out the hard way! 

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Because they now know where you bank and should they ever manage to get a default they know where the money is and can garnish it. I would not suggest trying to settle with a CA/JDB, but you can try with the OC which I think you said you were. Get it in writing and again, do not give the access to your banking info. Good luck.

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Blatant lie from JDB-

The woman I spoke with at the debt collection agency said I did not need to file an answer with the court that it would be taken care of through them.

 

Never ever call a JDB for any reason under any circumstances.  If you do not file an answer that tells the court that you agree to the lawsuit and do not wish to defend it so they automatically win.    

Never agree to a settlement with a JDB without a written contract laying out your terms in advance of paying them anything.  

Better yet, never agree to a settlement with a JDB under any terms.

As Tomntex said if they know your account number they will take every cent out of it no matter what you thought you had agreed to.

 

If they call you again then completely ignore the calls- do not answer the phone or return their calls (the same goes for anything you receive in writing from them.)   If they have already taken any funds out of your account then the SOL has started over as of that date.  If they have not yet taken anything then close the account and answer the suit with a general denial and claim expired SOL as an affirmative defense.  File a counter suit with your answer on the grounds that they sued you on a time-barred debt. 

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@TomnTex

 

I would not suggest trying to settle with a CA/JDB, but you can try with the OC which I think you said you were.

 

 

Since the OP is being sued by Portfolio Recovery, more than likely, the OC sold the debt.  If that's the case, then unfortunately, settlement with the OC would not be possible.

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