charged-off account

[opopoeiee]

Hi. I had a Capital One CC and was charged-off recently. When I went to checked my account on the website, Hunts & Henriques is listed. The number posted on Capital One’s website is directly calling Hunts & Henriues law firm. I called and informed me that a lawsuit is being filed. I asked for a debt validation and they sent me the entire statements. I called again within 30 days and the person asked what’s my financial situation is. He offered me a year or a  2 year plan. I said I don’t have any money to pay. But I said I’m willing to settle but he kept insisting why do I want to settle if this is a better deal? I also asked for a paid in full after paying he said I have to call the original creditor for that but I said I need to get a confirmation in writing before paying. So I decided to make a 2 year plan. I received the letter today. But on the payment plan statement, why is Capital One listed as plaintiff?

 

 

Our firm represents Capital One Bank NA in the above referenced matter.

The purpose of this letter is to confirm the payment arrangement you negotiated with one of our representatives. The soecific amounts and payment due dates are listed on the attached payment schedule.

When all of your scheduled payments have been made and have cleared the bank you will have resolved this matter. Please keep this letter as confirmation of our arrangement. We encourage younto onsult with your own attorney to make sure that you fully understand your legal rights.

Please make your payments payable to Capital One Bank and mail them to our firm at the address on this lettehead.

.....

This firm is a debt colletor. The purpose of this letter is to collect a debt and any information obtained may be used for such purpose.

 

 

I didn’t know better. Before googling for information, I decided to just call the law firm which is a debt collector and I think I made the wrong decision. Please what should I do now, should I start paying them or request a new one with pay for deletion on CA.  I also read somewhere that doing a monthly payment plan is a bad idea as its a judgment on me. Please help. Thanks.

[Clydesmom]

24 minutes ago, opopoeiee said:

I received the letter today. But on the payment plan statement, why is Capital One listed as plaintiff?

Because they still own the account.  H&H is the primary law firm they use in litigation in collecting on their accounts. They represent Cap1 but are not the creditor.

25 minutes ago, opopoeiee said:

Please what should I do now, should I start paying them or request a new one with pay for deletion on CA.

Cap1 is one of the most aggressive and hard line creditors.  They do not do pay for delete.  You can forget about that.

26 minutes ago, opopoeiee said:

I also read somewhere that doing a monthly payment plan is a bad idea as its a judgment on me.

In some cases the only way a creditor will agree to a payment plan is if the consumer signs a consent judgment.  A consent judgment means that if the consumer defaults again then the creditor does not have to sue they can proceed right to court and record that judgment to collect using levy or bank garnishment.

If the letter you quoted is the only one they sent it is merely documenting the payment terms you are agreeing to that is not a consent judgment.  

You have 2 major problems.  The first is Capital 1 removed arbitration from their card agreements years ago and you would not be able to use that as a defense in a lawsuit.  Cap1 WILL sue you.  They are very aggressive about this as well as H&H.  The second issue is that I believe that a promise to pay in California renews the statute of limitations.  So you are in a bad situation in that you agreed to pay the debt and acknowledged it which reset the SOL in California giving Cap1 another 4 years to sue you.  They were ready to go to court when you contacted them.  If you don't agree to this, settle in full, or file bankruptcy they WILL sue you and fairly quickly.  If they do sue you cannot use arbitration to scare them off.  

Now, California courts are notoriously backed up and it could take 2-3 years to get to trial.  You could back out of this deal and see how long it takes them to sue you and what the time frame would be to get to trial.  This MIGHT buy you time to save up money to offer a lump sum settlement.  Only you can decide what your best choice is.

[opopoeiee]

6 hours ago, Clydesmom said:

Because they still own the account.  H&H is the primary law firm they use in litigation in collecting on their accounts. They represent Cap1 but are not the creditor.

Cap1 is one of the most aggressive and hard line creditors.  They do not do pay for delete.  You can forget about that.

In some cases the only way a creditor will agree to a payment plan is if the consumer signs a consent judgment.  A consent judgment means that if the consumer defaults again then the creditor does not have to sue they can proceed right to court and record that judgment to collect using levy or bank garnishment.

If the letter you quoted is the only one they sent it is merely documenting the payment terms you are agreeing to that is not a consent judgment.  

You have 2 major problems.  The first is Capital 1 removed arbitration from their card agreements years ago and you would not be able to use that as a defense in a lawsuit.  Cap1 WILL sue you.  They are very aggressive about this as well as H&H.  The second issue is that I believe that a promise to pay in California renews the statute of limitations.  So you are in a bad situation in that you agreed to pay the debt and acknowledged it which reset the SOL in California giving Cap1 another 4 years to sue you.  They were ready to go to court when you contacted them.  If you don't agree to this, settle in full, or file bankruptcy they WILL sue you and fairly quickly.  If they do sue you cannot use arbitration to scare them off.  

Now, California courts are notoriously backed up and it could take 2-3 years to get to trial.  You could back out of this deal and see how long it takes them to sue you and what the time frame would be to get to trial.  This MIGHT buy you time to save up money to offer a lump sum settlement.  Only you can decide what your best choice is.

@Clydesmom Thank you so much for the reply. So if I were to push through with the payment plan that was agreed on why do I need to be worried to be sued again? Why will they sue me again after paying full after 2 years? And Also why do I need to be worried for the reset SOL if I make sure I pay the account? What’s the benefits in settling for full compare to the monthly payment plan? Please help is it really better to not pay and just be sued then? Thanks.

[WhoCares1000]

They can sue you but if you can prove you made the payments according to the written agreement (and you did get it in writing so that is a good thing), then you would have the evidence of accord and satisfaction. Just make sure you keep with that letter every money order or cashiers check stub to show you paid as agreed. Remember that this is 24 payments over 2 years.

I do not care for payment plans like this and would not have agreed to it at this point. I would have said it is either a lump sum agreement or they will have to do what they have to do. Settlements on cases like this have been made on the courthouse steps on the day of trial in the past and yours would have been no different. They want these payment plans because most people will not keep to them and so not only do they get to keep the money you sent. they can then sue you anyways for the full amount because you breached the agreement.

[opopoeiee]

@WhoCares1000 Thanks for the reply. I don’t really mind paying for it monthly as I don’t have the lumpsum money if ever but I still haven’t paid it until the 30th. Do you think I should rethink about this payment plan and just wait to get sued and by that time I can get more money and settle for lump sum? I’m asking you if you were me what will you do? Thank you so much.

[WhoCares1000]

I would not be in this position because I would have never agreed to the payment agreement in the first place.

That said, because you are here now and you have the agreement in writing, you might as well go ahead and abide by the agreement and make the payments. Just realize that you need to come up with 24 of these payments correctly AND make sure you are getting statements showing what is going on. Also, send the payments in such as way that you have a record of the payments you made.

Just remember that in the future, doing payments with a JDB or CA is never a good idea.

[Harry Seaward]

6 hours ago, WhoCares1000 said:

Just remember that in the future, doing payments with a JDB or CA is never a good idea.

In OPs case, Cap1 wouldn't deal with him directly, so if he wanted to pay them, he had no choice but to deal with the lawyers.

[BV80]

8 hours ago, WhoCares1000 said:

Just remember that in the future, doing payments with a JDB or CA is never a good idea.

 If details are in writing, there should not be a problem. A violation of the agreement by the JDB or CA would subject it to an FDCPA action. 

[opopoeiee]

14 hours ago, WhoCares1000 said:

I would not be in this position because I would have never agreed to the payment agreement in the first place.

That said, because you are here now and you have the agreement in writing, you might as well go ahead and abide by the agreement and make the payments. Just realize that you need to come up with 24 of these payments correctly AND make sure you are getting statements showing what is going on. Also, send the payments in such as way that you have a record of the payments you made.

Just remember that in the future, doing payments with a JDB or CA is never a good idea.

 

8 hours ago, Harry Seaward said:

In OPs case, Cap1 wouldn't deal with him directly, so if he wanted to pay them, he had no choice but to deal with the lawyers.

 

6 hours ago, BV80 said:

 If details are in writing, there should not be a problem. A violation of the agreement by the JDB or CA would subject it to an FDCPA action. 

So do you think I can still back out from this deal since I never signed it? Thanks.

[WhoCares1000]

Just because you did not sign anything does not mean you do not have an agreement with them. You accepted their terms of 24 payments of $XXX will take care of the debt. If you don't hold up your end of the bargain, they will sue you and they might not be as willing to deal with you. At this point, you have an agreement and you should try to uphold it. I am saying though in the future, I would not agree to a payment plan. I would find a way to do a lump sum setup. You are in this position now and so you should honor it. At least the agreement is in writing so they cannot go back on it as long as you do your part of the agreement. That is why I am saying you need to keep proof of every payment made.

[BV80]

13 hours ago, opopoeiee said:

 

 

So do you think I can still back out from this deal since I never signed it? Thanks.

Does the agreement require your signature?   Is there a space for your signature?  

[opopoeiee]

On 9/24/2018 at 6:56 AM, BV80 said:

Does the agreement require your signature?   Is there a space for your signature?  

none just the terms