Last week I recieved a letter from a law firm that stated they were retained as a debt collector to collect a debt from me. I simply don't know what to do. I don't have the money to pay it in full (It's roughly $650), and I'm already paying $115 a month on another credit card. I just don't know what to do. How should I respond to this company, because I don't want to get into further trouble.
There's quite a few threads on this forum that talk about how to respond. search my summons, judgement, debt validation, etc.. They have to send you a debt validation letter, you need to dispute the debt and ask for proof of that debt and who the original creditor is, and proof that they were assigned to that debt. Get your free credit report an www.annualcreditreport.com and see what they have already posted against you.. how old is the debt? Is it past the statute of limitations, usually a couple of years? check out the federal laws at www.ftc.gov/credit, look for FDCPA and FCRA laws. Also check your state attorney's general's website for collections laws in your state. This forum also has some good sample letters on how to respond... good luck
Quite honestly, I don't know why some of you get so freaked out about being sued. This is a CIVIL matter, you're NOT going to go to jail. If you don't have the money, they can't get blood from a turnip. All they can do is file the judgment, go after property, or garnish your wages(only a certain percentage) If you can't pay, then the judgment is pretty much worthless. Sure the judgment is good for 10 years or more, but very few creditors follow up on pursuing a judgment after the initial phase. These scum bag debt collection attorneys try to make the process feel like it's a criminal proceeding to scare you. They might even have you served by the local sheriff's department....WHO CARES? It's just a CIVIL matter. There are no debtor prisons. Now I can understand if you're scared about messing up your credit, and a judgment will surely do that. But let's be honest, most people who have judgments rendered against them didn't have stellar credit to begin with. I certainly suggest you try to work something out so that your credit won't be damaged, but please don't freak out about it. Listen to the previous poster and ask for validation; that's the first step.
First of all, all you received was a letter from a law firm. For $650, it's unlikely that this is a real law firm that is going to file papers and sue - it would cost them more in court time to do that for this debt. Most likely it's just a scare tactic and if so, it is illegal for them to threaten to sue you if they don't intend to do so. You can do two things - ignore it and deal with it later when the debt has gotten older or you can send them a debt validation letter and put the proof back on them. Take your power back and don't operate from a point of fear. I did that for too long and it's not worth it.
After looking over everything, I was freaking out. I am currently working on the validation letter, and will get it sent out later this week. However, I have another question: When I'm looking up laws, SOL, etc., I'm not sure if I should look under the state I have residency in (Ohio) or the state I go to school in (WV). En0ugh--the debt will be two years old in December.
The folks from the law firm are starting to call me. Should I answer the phone, or just ignore them until the letter of debt validation goes through?
You don't have to talk with them if you don't want to. A letter is just that -- a letter. You can ignore them unless and until they sue you. (And keep an eye on your credit report at least a couple times a year, 'lest they fabricate service of process of a suit and show up at a court date you knew nothing about, so you can get started on the process of filing a motion to vacate-set aside any judgment. This in turn forces them to start over and, hopefully, do it right.) The applicable statute of limitations would be your state of residence (however, chances are the credit card agreement you agreed to may have stipulated that the applicable SOL is a completely different state -- one with a very, very long SOL -- read it thoroughly).
hey scared The first thing you need to do is dispute the debt in it's entirety. request validation pursuant to the FDCPA and whatever your statelaws are regarding debt validation. don't play around here. record and save all calls. If they leave a message, and you know it's them, they must inform you that this call or communication is from a debt collector. If you didn't have the law already on your side, you'd have good reason to be scared. Calm down and relax, you'll be ok.
In the spirit of Jasper, chill. If you are found 100% liable for this debt of $650 then you are in no worst shape then you are right now. It won't be $650 x 10. Judgment aren't the worst credit event either. I have 2 judgments and my score is steadily rises. I am in the 600 club. My spouse has none and is still in the 500 club. Besides, judgments are recorded based on name and address. You can't change your name but you can get rid of the address that may be entered to your CR because of a possible future judgment. Then just dispute as not mine. That's how I got rid of the paid judgments posted on my spouse's credit file. Lastly, you are not even faced with being sued. Relax. Cross that bridge when you come to it.
