Although receiving phone calls from a collection agency is nothing new since having a balanced charged off in 2003, it seems like I'm dealing with a different breed this time. They leave me and my wife vague messages daily, telling me such things as "they need an employment varification" which was the one that tricked me into calling back in the first place seeing that I'm in the process of buying a home and thought it had to do with the morgage loan. Obviously it didn't have anything to do with the morgage loan, and before the lady could finish her spheel, I interupted her and told her that I didn't appreciate her leaving me vague messages and hung up. I did hear the word "litigation" uttered. She called back all in a puff telling me that she will document that call and she "wishes me the best of luck." I assume that was implying taking me to court. That was a few weeks ago, and I really just shrugged it off all together. I'm not worried about this debt affecting my loan, but what I am concerned about is the fact that now they act as if they are "making a decision on this matter." Which I've been hearing from them for a while now, even before our "altercation." Of coarse I don't want to go to court but from doing research on-line I found a few people who were dealing with the same shady tactics from this company. I'm really hesitant to do any negotiations with them but, my balance went from MBNA America to Truelogic Financial Co to Creditors Exchange and I feel like my time might be running out. I was wondering how the litigation (arbitration?) process works if it does go that far, which I feel it could.
As far as I have been able to discern MBNA stopped selling their chargeoffs to Wolpoff & Abramson when their new management took over. Wolpoff is still bringing arbitration and suits but it appears to be a process of scraping the bottom of the barrel for them. That speculation is further supported by your statement that it went to Truelogic and then to Creditors Exchange rather than Wolpoff & Abramson. You may not have to worry about it going to arbitration. That is somewhat better because normally debtors never had a chance of getting a favorable decision with NAF (National Arbitration Forum) unless they threatened to sue NAF directly. Those who have done that have always received letters from NAF stating that arbitration had been temporarily stayed pending further action (or something to that effect). Those letters usually came in less then 2 weeks followed by a second letter a couple of weeks later containing a check returning their $20 filing fee which is required under NAF procedural rule 6 and stating that NAF had decided not to arbitrate the case. Wolpoff usually tried to reopen the arbitration a few months later. If that happened they sent a new threat to sue and that always put a stop to it for good. Of course, in most cases Wolpoff finally brought the cases to court directly without mention of arbitration awards but at least the defendants had a chance to present a defense whereas they almost never had a chance once the award had been granted. All the lawyers had to do was present it as a res judicata argument and they would win almost automatically.
They may or may not institute a civil action but, I would say it is unlikely. Of course, this would depend on the amount owed, their local counsel and your jurisdiction. The reason that I say that litigation is unlikely is that IF it has been sold, the chain of ownership is probably not in order. There are many defenses if such an action would come to pass but at this point, I wouldn't fret.
Thank you for your replys, I really appreciate it. To the best of my knowledge I'm not dealing with Wolpoff & Abramson. Expecially, since I have never been contacted by them in the last 4 years since the charge off occured. On my old credit reports it stated that Truelogic purchased my balance from MBNA, so I feel they were legitimate enough. Now, there is no sign of Truelogic or any other CA on my credit report only an inquiry by Mercantile Adjustment Bureau. My orginal balance was for $2,900 and now it's something ridiculous like $4,500.
