What are the odds of someone being sued by a collection agency? I'm about $11,000 in debt on a card I used to launch my business. I fell behind on payments and was unable to keep up once the rate was hiked to 30%. We started getting threatening calls about a week ago from a lovely collection agency called NCO. I plan on repaying the debt to the original creditor once our business gets back on its feet, but am not sure how long that will take. Any thoughts?
You need to talk to the oc,but if you have nothing to offer them you will have to ride it out and hope the ca won't sue,NCO is a bear to work with,with it being $11,000 pretty good chance they will,in this economy there getting quick on the trigger.
If the alleged debt is sold and you are made aware of this fact, you can't repay the original creditor. Is the debt now sold or is NCO acting as a collection agency for the original creditor? That would be nice to know. If you have no other unpaid judgments against you, it would seem likely that someone would sue. Why shouldn't they? You mention that this is "a card" that you used to start your business. Does this mean that there are other cards with similar issues? With an interest rate of 30%, it will be difficult to pay back if you can't pay it now even if your business improves, at least with the sorts of profit margins that most legal businesses have. Dumb Bob would suppose that if you are a high seas pirate taking out a loan to buy a skiff and Evinrude 150hp, maybe. So it can be reasonable to prepare for what might happen: 1. What is the SOL in your state? 2. When was the last payment on the account? 3. Is the debt still with the original creditor or has it been sold?
Remember, also, that if the card was used for business purposes, you may not be covered by the FDCPA. I agree with Dumb Bob. With an $11K balance pending, it is likely that they will sue.
Thnks for the feedback. To answer your questions Bob: 1. What is the SOL in your state? 3 years 2. When was the last payment on the account? Oct '08 3. Is the debt still with the original creditor or has it been sold? I talked to Citi and they said no debts have been sold to NCO. I don't see the point of suing. I am on food stamps, own a car worth $900, and have $40 in my bank account. What else is there to take from me? The business has $1,000 left in inventory and two computers which are the tools we need to make money. What a sh*** process this has been.
Let's say that they can get default judgments at about $250 each in quantity. Let's say that that cost can be covered along with the summary judgments, call them $1000 each, by wage garnishments and other means on those various judgments. That leaves, say, a one in a hundred judgment from someone who will hit it big, get a good inheritance, a good job, whatever in the next 20 years. If they can get that at 30% interest, they are basically making that rate for 20 years, which is about doubling the debt every three years. So start out with $10,000. Double every three years for 20 years.
FWIW CITI IME ALWAYS has their ducks in a row, HOWEVER their stupid CA's do not. I would send a DV to NCO. Send it CRRR and get yourself a notebook so you can write DOWN EVERY PHONE CALL AND TIME AND WHAT WAS SAID.If you live in a state where you can record the conversation DO DO ... NCO will screw up and violate a lot and you will be able to get them and also IM0 sue the OC for this as well. I can't get into the details of this as I just cannot, BUT again BE ORGANIZED and keep a journal. STUDY WHAT YOU NEED TO ABOUT ALL OF THIS , as you just maybe able to help yourself. Of course if this was under a business all of this ma be moot, BUT if you applied as a person BUT used it as a business then no problemo. So what did you do? Apply for the card in your name and then use it to get cash advances and purchases for your business. Do you still have your business? What do you have in your name? WOofer
