Dirtbag collection attorneys!!!!!!!!

[KLAchemist]

What is the name of your state?OH

This is a repost from another forum I also visit, but it is urgent and I thought I'd check here too to see if anyone has any advice. Thanks for anything you have to suggest.

Just as I am writing my goodwill letter, my husband was contacted at work by someone at work claiming to be an attorney saying he was going to sue him for his debt with ATT Universal card. I don't know whether he was related to the collection agency that contacted us back in november, but:

1.) The debt has NOT been charged off and despite collection activites, ATT universal has continued to accept payments on the account
2.) The account is now current because they have continued to accept payments
3.) We were contacted by National Financial Systems in November but they "disappeared" when we DV'd them and neither sent us validation nor a mini maranda letter
4.) We just sent a fax to Universal including our "goodwill" leter (see post www.creditinfocenter.com)
5.) Now the dirtbag "attourney" with a 1-800 number just called my husband and said he is suing us for 2600 and will serve the papers to my husband at work and that he has to do nothing for us; we have received NOTHING from said "attorney" in the mail

So if anyone has ANY advice it would be appreciated, including any answers to the following:
Is there anything illegal about these threats? Is this guy just bluffing with empty threats? How do you respond to them? (DH said to put anything he has in writing to us) Would you recommend that we consult an attorney? Should we DV any correspondence we get from him? It is illegal to sue without DV right?

THANK YOU FOR ANY AND ALL HELP.

-Kristi

 

[Debt Guy]

I am really confused.

If the ATT card is current, why are you writing a goodwill letter? What kind of goodwill are you asking for? What happened?

There is clearly some sort of confusion here. Either you are confused about the status of your account or the attorney is confused.

I would get on the phone to ATT right away and see if they are confused also.

Either you get sued or you don't. There may not be a lot you can do right now except to find out what is going on and then determine an appropriate course of action.

Download a copy of the FDCPA from www.ftc.gov. Read it to understand exactly what type of notice the attorney/collector is required to give you and when it is required.

You are not required to receive anything in the mail from the attorney prior to his phone call to you. However, he must send the "initial communication" disclosure notice within a specified time period. Sometimes, the disclosure notice is incorporated into the summons.

I am not sure what you mean when you say ... "and that he has to do nothing for us" when referring to the conversation with the attorney. There is not a requirement that he do anything except comply with the law.

My answers to your specific questions:

Q. Is there anything illegal about these threats?

A. Not so far as I can tell right now -- but this is all depending on the actual status of the debt with ATT. This could just be an error. Or it could be an wild person violating left and right. I don't think you know enough yet.

Q. Is this guy just bluffing with empty threats?

A. Maybe. It happens all the time. Also, people get sued all the time.

Q. How do you respond to them?

A. My advice is still to call ATT first and see what they say about the status of the debt.

Q. (DH said to put anything he has in writing to us)

A. OK. There is no legal requirement that the attorney honor that request.

Q. Would you recommend that we consult an attorney?

A. To do what?

Q. Should we DV any correspondence we get from him?

A. Why? You already acknowledge you owe the debt. The only possible reason for a DV is a case of mistaken identity.

Q. It is illegal to sue without DV right

A. No. The creditor can sue if the debt is in default under the terms of the agreement. A DV has no bearing on the right to bring legal action.

 

[KLAchemist]

If the ATT card is current, why are you writing a goodwill letter? What kind of goodwill are you asking for? What happened?

We wrote a letter asking AT&T to continue accepting our payments, and stating that we want to pay off the account in full according to the credit card agreement. We also asked for help because we don't know the status of the account and were hoping they would recall it from collections as goodwill if we promised to continue to pay it as we have been.

There is clearly some sort of confusion here. Either you are confused about the status of your account or the attorney is confused.
DH's credit report lists the account as in collections, in house collections, or assigned to an attorney (not specified which). It has not been charged off, so it looks like they still own the debt we would like to avoid charge off if possible. Even though they are not sending us statements, they have accepted our payments and the account is now current.

I would get on the phone to ATT right away and see if they are confused also. We have tried. When we call their customer service line they refer us in house collections department who then promptly refer us to the attorney's office. The attorney's office is also a collection agency. The people at ATT on the phone claim they can't access the account because the computer won't let them.


Sometimes, the disclosure notice is incorporated into the summons. Ok, we will be waiting for this. But why are they calling then?

I am not sure what you mean when you say ... "and that he has to do nothing for us" when referring to the conversation with the attorney.
I don't know why the attorney is calling if the intention is to sue. We do not have the assets to pay the account in full or we would have. He said that he doesn't work for us and is not obligated to give us a payment plan. Fine, but why was he calling then?


A. My advice is still to call ATT first and see what they say about the status of the debt. Suggestion as to who to contact besides the customer service line? We too want to know why they accept payments if they intend to sue. But as stated above, we get no where. We got ahold of some fax numbers today and sent some letters, but that is all.


Q. Would you recommend that we consult an attorney?

A. To do what? To help resolve this matter with ATT directly? In case we are called to court, to help us show in goodwill that we have continued to pay? To help us find out what is going on because we can't get through to the right people?

Thanks.

 

[Debt Guy]

OK. Things are more clear now.

The goodwill letter threw me. Goodwill is a term usually applied to attempting to change an old credit report to show paid as agreed. I've never seen it used before when trying to convince a creditor to cure a default.

Also, you said the payments are current. You perhaps have been sending money but apparently they are not allowing you to bring the loan current or they are showing some sort of delinquent status on the payments.

You were behind and defaulted. At that point the creditor has the right to demand payment in full. They are not required to allow you to cure the account. Most do, but they are not required to.

Since ATT has turned the account over to outside collections, that explains why they will not talk to you on the phone. Most original creditors have a firm policy of leaving all negotiations to the collection agency once it is turned over.

The attorney is calling because he wants you to pay. He does not know you can't pay. You may have told him, but he hears that from everyone. Besides, he does not care anyway. He may be a jerk and a dirtbag but he is just doing his job. If ATT wants him to get the money or sue, that is what he is going to do.

Creditors are becoming more aggressive about suing. They want to get the claim converted into a judgment. Then, they can garnish wages and bank accounts and perhaps even put a lein on your home. Right or wrong, that is how they think they will get the most money the fastest.

Congress' actions to make bankruptcy more difficult only adds fuel to this fire.

An attorney or a debt settlement company MIGHT be able to help you negotiate a settlement. Apparently you are unable to do so yourself. If you want to go that path, you need to move quickly.

If and when you receive a summons, you must respond or the creditor will be awarded a default judgment. You can respond with a general denial and that might buy some time but you are eventually going to stand before a judge.

The judge is not likely to be persuaded that you have had financial difficulties or that you tried to do the honest Christian thing and take care of business, etc. He may have a great deal of sympathy but he is required to look to the facts -- remember that justice is blind. The facts he is going to hear are (1) that you were in default and (2) that your agreement with the bank allows them to call the loan immediately due and payable in the event of default.

You have all the integrity in the world on your side. Unfortunately, all the law is on their side.

Unless -- you have some evidence of a violation(s) of FDCPA. Then you have a lever against the attorney to force a settlement.

Another thought, you could fight back. You have the right to conduct discovery. That means you can force the creditor to prove everything. You are not likely to win the war but you can run up their cost. Sometimes a creditor will come around when the battle becomes too costly. Your attorney can do this for you or you could teach yourself how to be a pro se warrior and represent yourself.

Finally, attorneys cost money. In my opinion, you will ultimately not prevail in this battle. You need to decide how much you are willing to pay to fight. Bankruptcy is still an option.

A last thought to salvaging your situation -- call ATT and ask to speak to someone who handles hardships. Explain the situation and see if they will help. If that does not work, ask to speak to a supervisor and ask what do you need to do to keep from going into litigation. Worth a try.

Good luck.

 

[KLAchemist]

Thanks!!!

At least we know what we are dealing with. Thanks again.

 

[KLAchemist]

Oh, and...

I guess we were trying to deal directly with Citi/ ATT Universal since the account is still in house and not charged off. I am thinking of going the attorney route to see whether he can help us settle this without charge off. Thanks again.

 

[sunnysideup]

Being sued

If they do deliver a summons to show up in court. Make sure you have copies of all checks or what ever you are paying with. The statement from ATT Universal a copy of the goodwill letter and for the time being ask them for documentation of the receiving this letter. This will show the judge you are working with them and more than not the judge will throw the judgement out of court and this atty. has to pay all the fees. Also, you can countersue for harassment and ask for payment of your time and effort to gather information as well as taking time off work.

 

[KLAchemist]

Thanks

We will most certainly do this. Although, it does look like all the attorney's office is doing at the moment is trying to scare us into paying. We got a letter yesterday from them that is the typical initial correspondence letter from a CA and please call so and so to set up payment, blah blah blah. The attorney is also a collection agency, so they are just trying to collect. We have 30 days to ask for debt validation, so at least for the time being, we have some breathing room.

I am pretty sure this is what happened. The credit card company sent it to NFS for collections, and this CA returned it to the OC when we requested debt validation. We have heard nothing more from NFS. Although we have been making payments, the OC then contracted this law firm/CA and they are making a second attempt at collecting the debt. So we are starting all over again, right?

Does anyone have an opinion on sending a DV letter to the attorney/CA because we actually want to dispute a portion of the debt; their balance does not reflect the payments we have been making. Thanks.