sued by credit card company

[CGA]

What is the name of your state? NJ

I got a summons in the mail yesterday (regular mail, not certified) from a local court saying a collection agency representing a credit card agency is suing me for about $4000. I've never heard from these people before and have no idea what's going on. I tried to hire a lawyer but no one will take the case because it's for such a small amount. I just bought a house and will close on it in a couple of weeks. Will this screw that up?? I have 20 days to file an answer, but I don't even know what that is! Please help.

 

[Ladynred]

I don't know if it will screw up your closing or not.. Sr. Members can answer that question.

As for the lawsuit notice you got, you should immediately send a validation request letter to the collection agency. If the debt is not yours, they will have to drop the case. You can find sample validation letters at www.creditnet.com. The sample letters are under the Discussions tab, and you have to sign-up, but its free. For more information on the validation process, go to www.creditinfocenter.com, they have very good information there.

In the meantime, you're going to have to answer the letter you received. What are they asking for ?

If they gave you a court date GO to court, don't blow it off, or they will win by default. You can then tell the judge that you've requested validation of the debt and haven't received it yet. They MUST validate within 30 days.

One more thing.. when you send the validation request letter, make sure you send it Certified, Return Receipt Requested only !

 

[CGA]

Thanks Ladynred. After looking through some old files, I think I do owe some money to them, but not the amount they're claiming. I spoke to a lawyer who specializes in these things and he told me to call the law firm representing the credit card company and work out a settlement with them, rather than hire a lawyer because that would cost more than I even owe the credit card company and that isn't worth it. He said I should be able to negotiate something with them and that this happens all the time. It's just a way for the credit card company to get their money--using scare tactics.

 

[baylorbear]

I am by no means an attorney, however, I find it hard to believe that you would get a summons to appear in court letter that was not certified or delivered to your door. I have a feeling it is just a collection letter that was worded or presented in a way that it looks like you have to appear in court.

 

[Ladynred]

I would have to agree with BaylorBear. Court documents like that are rarely sent 'regular' mail. Take a close look at the letter again.

Take heed.. if you decide to work out a settlement with the collection agency (call themselves lawyers or have one they use all the time), make sure you do EVERYTHING in writing !! Do NOT do anything over the phone, they very conveniently 'forget' you made any agreements and continue to hound you. Send all correspondence Certified, Return Receipt Requested.

Another question.. how old is this debt ? When was the last time you made any paymetns on it ? Its possible, if the debt is old, that the Statute of Limitations has run out and you won't have to pay anything. The SOL for NJ is SIX years, after that runs out they can't sue you to collect and are out of luck.

Another thing to consider is the IRS. Any amount over $600 of cancelled debt from a settlement is considered income and you pay taxes on it !

 

[CGA]

I know what you mean. I thought it was a hoax at first too, but since I wasn't sure, I faxed it to the lawyer so he could look at it. He said it was legit, but that it should've come certified mail. He says I was not properly served. He also said though that sometimes they'll send it regular mail and then sent another one certified a couple of days later. Makes no sense to me! But since I'm running out of time and don't want this to affect the closing on my house, I didn't want to wait to see if the certified one ever showed up.

Ladynred--the last time I made any payments on it was 1999 so unfortunately it wasn't that long ago, although it seems like ages ago. I didn't know about the IRS thing. I just called the collection guy and we worked something out. Because it's not a huge amount (he agreed to take the miscellaneous fees out) I'll be able to pay the whole thing off rather soon and just get rid of it once and for all! He's going to send everything to me and he'll also file something with the court to stop this from proceeding, which I'll also get in writing. Since I have spoken with a lawyer about this (actually I spoke to 3 lawyers) if I have any trouble with this collection guy, I can always call one of them.

Thanks everyone!

I hate credit cards!!!

 

[Ladynred]

Good Luck !

Just a thought.. you can try this.. since the collector sounds to be somewhat reasonable, if he's going to stop the court action, see if he'll also get the entry on your credit report removed or at least to say 'paid as agreed'. If you think that would be pushing it.. well.. that's your call, but its worth a try