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Is my attorney screwing me over?


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A OC I defaulted under sent me to collections but I had already negotiated with the CC and paid them around $500 to close the account. The collections called me multiple times after and it was a pretty clear cut case of FDCPA violation and I brought it to a local attorney who took it on contingency. At the time of taking the case the attorney said you should get at least $1000 in statutory damage and the amount I paid which is $500 to the CC. She sued the collection agency and received a settlement offer of $7kish settlement offer and she says my portion of the settlement is $500 and I can sign it to receive it.

Should I just accept the offer or try to negotiate a higher offer and she sued the collection agency and not the original creditor can I get the negotiation to include getting the tradeline removed?

This is what the email said “No guarantees but we’ll see what happens. My paralegal will send you a retainer - it’s free. You can collect up to $1,000 and maybe the debt getting waived but we’ll see. “

While no guarantee its very standard to have $1,000 in statutory. The debt was already paid to the tune of $500 when the email was sent.

The email I received today was “They will pay our legal fees and they will give you $500 for the violation. This means that you can use that money to settle the debt once they send it.”

The release mentions they will be paying $7000 roughly.

 

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9 hours ago, Wakefield_official said:

A OC I defaulted under sent me to collections but I had already negotiated with the CC and paid them around $500 to close the account. The collections called me multiple times after and it was a pretty clear cut case of FDCPA violation and I brought it to a local attorney who took it on contingency. At the time of taking the case the attorney said you should get at least $1000 in statutory damage and the amount I paid which is $500 to the CC. She sued the collection agency and received a settlement offer of $7kish settlement offer and she says my portion of the settlement is $500 and I can sign it to receive it.

Should I just accept the offer or try to negotiate a higher offer and she sued the collection agency and not the original creditor can I get the negotiation to include getting the tradeline removed?

This is what the email said “No guarantees but we’ll see what happens. My paralegal will send you a retainer - it’s free. You can collect up to $1,000 and maybe the debt getting waived but we’ll see. “

While no guarantee its very standard to have $1,000 in statutory. The debt was already paid to the tune of $500 when the email was sent.

The email I received today was “They will pay our legal fees and they will give you $500 for the violation. This means that you can use that money to settle the debt once they send it.”

The release mentions they will be paying $7000 roughly.

 

Do you have a copy of the settlement release or agreement?  If not, get a copy.  The attorney works for you and you have a right to see it.

What is the balance on the debt?  The release may say that the balance is considered settled and nothing owed if the release is accepted.  

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6 minutes ago, BV80 said:

Do you have a copy of the settlement release or agreement?  If not, get a copy.  The attorney works for you and you have a right to see it.

What is the balance on the debt?  The release may say that the balance is considered settled and nothing owed if the release is accepted.  

The retainer agreement was on a dropbox link which I thought I could access anytime but unfortunately not so I will have to request a copy of it. 
The balance was $1080, I had already settled with CC and paid them $500 so the debt was already settled prior to her filing the suit against the collection company. 

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7 minutes ago, Wakefield_official said:

The retainer agreement was on a dropbox link which I thought I could access anytime but unfortunately not so I will have to request a copy of it. 
The balance was $1080, I had already settled with CC and paid them $500 so the debt was already settled prior to her filing the suit against the collection company. 

Okay, you really need a copy of that agreement.  When I sued a collection agency, my attorney sent me a copy of the agreement.  It showed how much was to go to the attorney and how much went to me along with the statement that the debt (around $3000 or $4000) was to be considered settled and paid.  And I received the full statutory amount.

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2 minutes ago, BV80 said:

Okay, you really need a copy of that agreement.  When I sued a collection agency, my attorney sent me a copy of the agreement.  It showed how much was to go to the attorney and how much went to me along with the statement that the debt (around $3000 or $4000) was to be considered settled and paid.  And I received the full statutory amount.

Yeah I think by tomorrow I should hear more but I want to be prepared for the rest so this time given an opportunity I can prepare better. Also is getting the tradeline removed possible in the negotiation if she sued the collection company and not the OC? And by full statutory you mean $1000 right?

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3 minutes ago, Wakefield_official said:

Yeah I think by tomorrow I should hear more but I want to be prepared for the rest so this time given an opportunity I can prepare better. Also is getting the tradeline removed possible in the negotiation if she sued the collection company and not the OC? And by full statutory you mean $1000 right?

Yes, the statutory amount I received was $1000.

In regard to the TL, the collection agency has no control over the OC’s reporting.  If it’s your debt, the OC’s TL can remain as long as it is reporting accurately.  Even if the OC reported something incorrectly and you disputed the inaccurate information with the credit reporting agencies, the OC would only be required to correct or delete the inaccurate part.  It would not be required to delete the entire TL.

Was the collection agency reporting?  

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26 minutes ago, BV80 said:

Yes, the statutory amount I received was $1000.

In regard to the TL, the collection agency has no control over the OC’s reporting.  If it’s your debt, the OC’s TL can remain as long as it is reporting accurately.  Even if the OC reported something incorrectly and you disputed the inaccurate information with the credit reporting agencies, the OC would only be required to correct or delete the inaccurate part.  It would not be required to delete the entire TL.

Was the collection agency reporting?  

No it is still the OC reporting. I was hoping since its an FDCPA violation we might have a shot at getting the TL removed because honestly getting the TL removed is worth a lot more $ to me than whatever this settlement can offer. It is the single negative TL I have and it is holding me back financially massively. 

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2 minutes ago, Wakefield_official said:

No it is still the OC reporting. I was hoping since its an FDCPA violation we might have a shot at getting the TL removed because honestly getting the TL removed is worth a lot more $ to me than whatever this settlement can offer. It is the single negative TL I have and it is holding me back financially massively. 

No.  The FDCPA does not apply to original creditors.  How old is the debt?  What is the date of first delinquency (date you went into default and never brought the account back to a current status)?

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3 minutes ago, BV80 said:

No.  The FDCPA does not apply to original creditors.  How old is the debt?  What is the date of first delinquency (date you went into default and never brought the account back to a current status)?

April 2019 was 30 days late. But I kind of just ignore the credit problem until it was too late. I only started to work on this a few months ago so it is still near impossible to qualify for any decent cards. For now I have a secured Cap one and 2 Amex authorized cards. I don't want to do more than 4 cards including authorized so I have the option to get Chase business Ink in the near future. The Fico 8 currently sits at 652. At this trajectory I might be able to qualify for any decent cards by the end of next year but if this TL gets removed I can open the cards of my choice tomorrow. 

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49 minutes ago, Wakefield_official said:

April 2019 was 30 days late. But I kind of just ignore the credit problem until it was too late. I only started to work on this a few months ago so it is still near impossible to qualify for any decent cards. For now I have a secured Cap one and 2 Amex authorized cards. I don't want to do more than 4 cards including authorized so I have the option to get Chase business Ink in the near future. The Fico 8 currently sits at 652. At this trajectory I might be able to qualify for any decent cards by the end of next year but if this TL gets removed I can open the cards of my choice tomorrow. 

As long as the debt is valid, there’s no way to force or guarantee removal.  Check your state debt collection laws to see if they extend to original creditors regarding credit reporting.  If they do. See if there are any possible violations there.

Otherwise, I suppose you could try some goodwill letters, but I just don’t know what else to offer.

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28 minutes ago, BV80 said:

As long as the debt is valid, there’s no way to force or guarantee removal.  Check your state debt collection laws to see if they extend to original creditors regarding credit reporting.  If they do. See if there are any possible violations there.

Otherwise, I suppose you could try some goodwill letters, but I just don’t know what else to offer.

The only thing I keep coming back to is for all intents and purposes the collection agency was still just part of the OC because if the OC could settle with me directly then the collection agency was still collecting on behalf of the OC and not actually a debt collector in if that makes any sense. OC never sold my debt to the collection agency. Collection agency acted on behalf of OC. So that should mean OC has some liability for this aka some leverage we can use to force a deletion right or I am grasping at the straws now.

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2 hours ago, Wakefield_official said:

The only thing I keep coming back to is for all intents and purposes the collection agency was still just part of the OC because if the OC could settle with me directly then the collection agency was still collecting on behalf of the OC and not actually a debt collector in if that makes any sense. OC never sold my debt to the collection agency. Collection agency acted on behalf of OC. So that should mean OC has some liability for this aka some leverage we can use to force a deletion right or I am grasping at the straws now.

There is no leverage for purpose of the FDCPA.  If the CA had been collecting for a debt buyer like Midland, it could be possible to claim Midland was vicariously liable under the FDCPA for the actions of the collection agency it hired because Midland can be considered a debt collector.  But that does not work with an OC because the OC is not also a debt collector.

It appears that the collection agency’s violation had nothing to do with credit reporting.  It was the fact that the CA failed to cease collection efforts after receiving a timely validation request.  That didn’t affect the OC’s credit reporting.  So, even if you were able to hold the OC responsible for the actions of the collection agency, it would not mean they would have to delete an accurately reported account.  They might choose to do so, but they wouldn’t have to.

No matter what, you would have to find a law that applies to the OC and that the OC violated.

 

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