Victoria8055

Pre-Legal Notification From MCM

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Do you guys think they would really mess with taking me to court over this? From what i’ve read, a debt collection agency taking someone to court and paying an attorney/court fees/etc ends up costing around $2000. The debt is $1797. And from what i’ve read, they buy these debts for pennies on the dollar. So say they paid $500 for this debt, that’s $2500 they would have put into this to try to get roughly $1800. And they’re putting up that $2500 without being sure that they’ll even win and collect on any of it. 

 

Just wanted to get some opinions. It’s not going to change my approach or anything, more so just curious. 

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Getting a judgment from the court is a very valuable thing. This allows them the right to collect for 10 years. Before the expiration of the 10 years, they can file a motion to revive the judgment. They can also sell your judgment to another debt buyer. Please read up: 

https://cecb.com/reviving-judgments-in-missouri-judgment-creditors-need-to-pay-close-attention-to-the-10-year-statute/

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Okay, i’ll definitely read up on all of that ASAP, thank you so so so much. So sending out the DV letter yesterday was the best course of action I could proceed with right now? And now, I just need to read up and research as much as I possibly can about arbitration and debt collection during this time frame that the debt collection has been suspended while they verify the debt per the DV letter? Just confirming that this is my best course of action right now and if it’s exactly what I should be doing. I have no problem at all putting in whatever work I need to to try and win this, but I just want to make sure i’m putting in the work and spending the time on the right things. 

I still can’t thank you guys enough and how much I appreciate this. You guys have been great, and I really don’t know what i’d do right now if I didn’t have you guys on my side helping me 🥺

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16 minutes ago, Victoria8055 said:

Okay, i’ll definitely read up on all of that ASAP, thank you so so so much. So sending out the DV letter yesterday was the best course of action I could proceed with right now? And now, I just need to read up and research as much as I possibly can about arbitration and debt collection during this time frame that the debt collection has been suspended while they verify the debt per the DV letter? Just confirming that this is my best course of action right now and if it’s exactly what I should be doing. I have no problem at all putting in whatever work I need to to try and win this, but I just want to make sure i’m putting in the work and spending the time on the right things. 

I still can’t thank you guys enough and how much I appreciate this. You guys have been great, and I really don’t know what i’d do right now if I didn’t have you guys on my side helping me 🥺

Yes.  That is the correct plan. 

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2 hours ago, Victoria8055 said:

Do you guys think they would really mess with taking me to court over this?

Yes.

2 hours ago, Victoria8055 said:

From what i’ve read, a debt collection agency taking someone to court and paying an attorney/court fees/etc ends up costing around $2000. The debt is $1797.

Not exactly. Most large companies like Midland hire a law firm on a global retainer for a specified number of accounts/suits each year. On the accounts they sue for a flat fee of anywhere from $750-2500 depending on what state the suit is in is added to the suit.  They always ask for reasonable attorney fees to be awarded as part of the judgment and it is. That means YOU pay their attorney fees when you lose so it costs them nothing.  Added to that: the retainer fee if unused at the end of the fiscal year can be a business expense on taxes.

2 hours ago, Victoria8055 said:

And from what i’ve read, they buy these debts for pennies on the dollar. So say they paid $500 for this debt, that’s $2500 they would have put into this to try to get roughly $1800.

What they paid for the debt does not matter.  Under contract law they are legally entitled to sue for the entire amount the consumer owed when they bought the account plus attorney fees and costs. Even if they did pay $500 for the debt if they settle for $750 they make a great profit.  If they get a judgment then post judgment interest is added annually which can balloon a small debt to triple the amount in a very short number of years.  It isn't uncommon for them to sue someone who is collection proof right now and wait it out for a few years then garnish their wages several years down the road to collect triple what they sued for.

2 hours ago, Victoria8055 said:

And they’re putting up that $2500 without being sure that they’ll even win and collect on any of it. 

As I explained before they have already paid a global retainer to sue consumers.  They are not spending an additional retainer fee specifically for your suit.  The only added cost is probably $100 in filing fee directly to the court and even that is awarded to them if they win.

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12 minutes ago, Victoria8055 said:

Okay great, good to know. So what if I lose arbitration? Am I on the hook to pay more than the debt I currently owe? Am I going to have to pay any of these attorney fees of theirs? I’m a little confused.

In arbitration you are generally required to pay $250 at most for arbitration costs.  In some cases you don’t have to pay anything. They pay the rest of the arbitration costs, which is in the thousands or even tens of thousands.  They have to pay their attorney fees. 
 

 

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27 minutes ago, Clydesmom said:

Yes.

Not exactly. Most large companies like Midland hire a law firm on a global retainer for a specified number of accounts/suits each year. On the accounts they sue for a flat fee of anywhere from $750-2500 depending on what state the suit is in is added to the suit.  They always ask for reasonable attorney fees to be awarded as part of the judgment and it is. That means YOU pay their attorney fees when you lose so it costs them nothing.  Added to that: the retainer fee if unused at the end of the fiscal year can be a business expense on taxes.

What they paid for the debt does not matter.  Under contract law they are legally entitled to sue for the entire amount the consumer owed when they bought the account plus attorney fees and costs. Even if they did pay $500 for the debt if they settle for $750 they make a great profit.  If they get a judgment then post judgment interest is added annually which can balloon a small debt to triple the amount in a very short number of years.  It isn't uncommon for them to sue someone who is collection proof right now and wait it out for a few years then garnish their wages several years down the road to collect triple what they sued for.

As I explained before they have already paid a global retainer to sue consumers.  They are not spending an additional retainer fee specifically for your suit.  The only added cost is probably $100 in filing fee directly to the court and even that is awarded to them if they win.

In some states this is not the case. 
 

For example, in my state they could get the filing fee but not attorney expenses as part of the judgment.  

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4 hours ago, Brotherskeeper said:

What type of Comenity credit card is this?

What was the date of the last payment on the account, if you know? 

This is important information needed in order to obtain the correct agreement.

Do you have the original Comenity Capital Bank Credit Card Agreement in your files? 

Do you have any original monthly account statements in your files? 

Do you have any bank statements that show payments?  The last payment made? ( to determine statute of limitations)

How is this account being reported on your 3 credit reporting agency reports? 

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