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Pre-Legal Notice from Credit Corp Solutions


Zephyr
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Hello,

 

I just received a Pre-Legal Notice from Credit Corp Solutions. Basically the letter says that due to a lack of response they've placed the debt with their pre-legal department and it may be referred to an attorney. I did some research and found that this is a standard intimidation letter and they have actually been sued over this here in California.

Some back story: This account was charged off in March 2017 and sold to Credit Corp Solutions. They first contacted me shortly after. Something that's interesting is that they actually listed the debt as being $700 more than the amount that the original creditor said was owed when it was charged off.

Does anyone have any advice? I'm hoping that I can get away with not paying this company anything because I hate collection agencies.

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"Lack of response" sounds like the window of opportunity for a DV has passed.  In any case, I wouldn't do anything for now.  If they sue, you can respond with a motion to compel arbitration per the following agreement:
https://www.lendingclub.com/info/borrower-agreement.action

The agreement has JAMS and says they pay all of their own fees.

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  • 2 years later...

I too have been hit with the same letters and now they say i have 14 days to respond or they’re sending it to the legal dept (it’s been in pre-legal dept for a year). I tried to pay the original creditor ( lending club) after 1 month late but they wouldn’t except. I don’t want to pay credit Corp because lending club is listed as charged off and my credit report has already suffered but don’t want to go to court? It’s $23k!

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  • 3 weeks later...

Hi, 

I have a same issue. Did you resolve this matter about Credit Corp? My OC was Lending Club too and back 2015. I just received a letter from Credit corp today about final notice before legal referral that if I don't response or call them within 14 days  it will referred to a law firm. Please advice. Thank You. 

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  • 3 weeks later...
On 8/14/2020 at 4:04 PM, Shin said:

Hi, 

I have a same issue. Did you resolve this matter about Credit Corp? My OC was Lending Club too and back 2015. I just received a letter from Credit corp today about final notice before legal referral that if I don't response or call them within 14 days  it will referred to a law firm. Please advice. Thank You. 

What state are you in, specifically? Account was back in 2015, or that's the alleged date of default or charge off or what? Pre-Legal is primarily just an intimidation effort by any collector. They like to throw that "legal" word in there to make it sound as if they are of authority to just be judge jury and executioner. But they don't have that authority.

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On 7/28/2020 at 8:03 PM, Cbole said:

I too have been hit with the same letters and now they say i have 14 days to respond or they’re sending it to the legal dept (it’s been in pre-legal dept for a year). I tried to pay the original creditor ( lending club) after 1 month late but they wouldn’t except. I don’t want to pay credit Corp because lending club is listed as charged off and my credit report has already suffered but don’t want to go to court? It’s $23k!

You don't really provide much information for anyone to help you out really here. What state are you in? When is the last date of payment or date of default?

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  • 3 months later...
On 9/4/2020 at 1:24 PM, alwayswinning36 said:

You don't really provide much information for anyone to help you out really here. What state are you in? When is the last date of payment or date of default?

New Jersey. I believe 2015 to original creditor. Just got a letter today saying nothing about legal dept (which they’ve threatened last 3 letters that come randomly every 6 months) but now threatening credit report. I just read they can report negatively too even though it’s already reported on by original creditor. Not right! Is there any way to get them to drop it without paying? Lending club originally offered me a settlement at $8500- 

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8 minutes ago, Cbole said:

New Jersey. I believe 2015 to original creditor. Just got a letter today saying nothing about legal dept (which they’ve threatened last 3 letters that come randomly every 6 months) but now threatening credit report. I just read they can report negatively too even though it’s already reported on by original creditor. Not right! Is there any way to get them to drop it without paying? Lending club originally offered me a settlement at $8500- 

You need to find out the NJ statute  of limitations for legal action on this type of debt.  I believe NJ is 6 years, but don’t quote me.   Yes, collection agencies and debt buyers can report separately from the original creditor to credit reporting agencies. 

The credit reporting period is 7.5 years from the date of first delinquency.  That is the date the account first went into default and was never brought back to a current status.   You need to determine the date you defaulted on the account.

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  • 4 weeks later...
On 5/8/2018 at 7:33 PM, Zephyr said:

Hello,

 

I just received a Pre-Legal Notice from Credit Corp Solutions. Basically the letter says that due to a lack of response they've placed the debt with their pre-legal department and it may be referred to an attorney. I did some research and found that this is a standard intimidation letter and they have actually been sued over this here in California.

Some back story: This account was charged off in March 2017 and sold to Credit Corp Solutions. They first contacted me shortly after. Something that's interesting is that they actually listed the debt as being $700 more than the amount that the original creditor said was owed when it was charged off.

Does anyone have any advice? I'm hoping that I can get away with not paying this company anything because I hate collection agencies.

Can you update us with what happened?

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