Arrow Followed FDCPA - I am sad !!

Pulse my heart goes out to you. I know you prob. dont need to get told what you shoulda/coulda done at this stage, so I wont. IM NO EXPERT, just someone trying to offer helpful advice. In fact, this is my first time trying to respond. But you need help. You need to know that things will get better and aren't as bleak as they seem. There are always things that can be done. First thing you need to do is to talk to your husband so that you "two" can decide how you want to proceed. This debt is not only hurting you, its affecting both of you.

I dont think that you have the option of waiting to see if it will disappear.
My suggestion is to send a "cease and desist letter immed". WOULD EVERYONE AGREE? Make sure that you can give them an address to direct all future communications too.

Next I would send a settlement agreement for an amount I could afford. Explain in simple terms why you are unable to pay 5,000. Tell them you want to work with them but that you just dont have it. Send them a offer to pay a reasonable amount and request that they allow you to spread it out over a few months.

Think about this, if they sue you, you'll have a judgement on your cr. If you wait for them to garnish you, they'll take way more then you can afford to give them. If you try and settle first, you can determine the final settlement amount and possibly give them a reasonable amount each month in payment. In addition, if they accept the settlement you might be able to get them to agree to remove the tradeline as part of the settlement (Make sure that you get everything in writing before you send that first check too them).

If they want the entire settlement in full, consider all your options. Can you take a loan from your credit union? Can you borrow against a retirement account? Borrow from friends or family? Do you have two cars, one that you dont really need- Sell one. Bankruptcy is your last option - But I would begin gathering info on the bankruptcy process just in case. Personally, Before I filed bankruptcy, the creditors would have to take me to court. The judge is prob. going to want to know extenuating circumstances/will want to hear your side of the story. Has anyone been taken to court. Will the judge lower the balance, payment amount? What happens when a creditor takes you to court?

 

So, he won't give you the money to teach you a lesson re your decision to validate? Or he won't give you the money b/c he doesn't have it to give? If it is the latter, look into BK. If it is the former...

Tell him that if you live in a community property state that your debt problem becomes his and that they can go after him for the judgement. That it is in his best interest to help you out of this mess before it gets civil. If he leaves you - then you know what kind of man you married and you should look into BK and move on with your life...

I would not take a loan from a company unless I was in a financial position to pay it back.

 

Marci,

I agree with everything you posted here except that I think Pulse said these debts were hers prior to getting married. If that is the case, they are her sole and separate debts and getting married does not make him responsible for her prior to marriage debts. The part about him not loaning her the money and if he leaves.......is exactly right.

 

Did anyone here advise pulse to request validation on a $5000 debt?? I hope not - I think that is just a plain bad move.

 

Point out one message stream that says, "dont validate if the amount owed exceeds $____. If so point it out to me cause I missed it.

 

You make a good point. There isn't one. And with that said, other people on this board shouldn't be criticizing pulse over spilt milk. She acted on the information she had at the time - which is the best any of us can do.

I do agree that the goal is to act on all the information possible, and it does take a LOT of time to amass that much information.

Pulse's posts are critically important, because she is showing others new to the process the down side of what can happen. I'm sorry that it happened to her.

Roni mentioned this before, when a woman named Kelly got sued after a validation on a $1000 Discover bill. Roni's point was this - and I repeat for emphasis:


1. People need to research, be warned (by those assuming authority on certain topics), and share the horror stories re credit repair and legalities.

2. Sometimes, you just have to pay and deal with the bad mark. Not all credit repair is going to be completely effective. This is critically important when dealing with agressive and smart creditors.


LKH - thanks for the clarification. If the situation weren't so fragile, I might be tempted to throw that out there to the husband anyway just to see how he reacts. It's always best to know the character of the person you're married to, and no better place to see it than under pressure...

 

I am going out on a limb here and I'll admit that I haven't read evey last post on credit couseling except to have noticed that it's generally a bad idea. BUT --might credit couseling through a true nonprofit be appropriate in this case? Isn't that something you could tell a judge that you're doing if sued by a ca? Kind of like going to rehab when your on trial for drugs or DUI? Could it help your case at all? I know that the counseling is noted on your rpt, etc. but doesn't a true service help you plan your budget and help you deal w/ the creditors. I am not talking about Ameridebt but those local ones (and I think someone here mentioned a Christian one as well and he was pleased w/ their service) If anyone has any thoughts on this, please post b/c like I said I don't know exactly what I am talking about but it is just a thought.

 

While I do not use your exact words (as quoted above) I did advise this member to watch what they're doing when requesting validation of a debt that was $2k. (I considered that then, and still do, a fairly large amt). No one can say "don't validate if the amount owed exceeds x amount of dollars" and give an exact amount.

So... to answer your question, here's one message stream that says so.

This thread is from 6/17/02, just 5 weeks ago and it's the ninth post I'm referring to:

http://consumers.creditnet.com/stra...id=193298&highlight="fairly+large"#post193298

 

you said in another line that you owe $40. I think you need to find out how much of this is past the SOL. then how much of it is less than $1000? if it's under a thousand they would be very unlikely to sue. how much is for accounts for which you never signed an agreement....like utility bills. they wouldn't be able to validate. how much is within a few months of the SOL? you definitely don't want to write any letters to them. etc...

briana

 

What would happen to your job/career security re remaining bonded if you had a judgement on public record? Is it safer than having a BK on file? I would research this before opting out of BK. If you're going to lose your bonding either way, then at least lose it legally owing nothing.

If your husband cannot help with an Arrow settlement, I would solicit other family help. I would still tell my husband everything though, if for nothing else than moral support for the days ahead. You'll need it and hopefully he'll give it. :-/...


I hope things work for you,

 

tmitchell,

I searched for all of Pulses threads and the one in which the letter question was asked, this is the answer she received:

In retrospect clearly wrong advice. Perhaps we do need a disclaimer stating:
WARNING: This advice is offered free of charge and its value is directly tied to its cost.

I think we all need to take the advice offered on this board as what it really is, advice offered by amateurs to amateurs. I donâ??t know of a single practicing attorney, whose field is consumer credit, that posts on this board. Some of the advice offered is brilliant and well reasoned, some is questionable, and some is just plain wrong. Before acting on any advice think about it and question it, it is your credit that is affected.

Pulse, I am so sorry that, by accident, you have been steered incorrectly by information posted on this board that was not challenged by anyone.


JohnM

 

Re: Arrow Followed FDCPA - I am sad

For me, credit repair had nothing at all to do with outstanding debts. I paid all my debts. For me, the phrase credit repair had to do with REPAIRing my CREDIT reports. I had been very, very late with many credit card and student loan accounts. At the point I began credit repair, I had completely wiped out 100% of my debt. Please note: I'm saying this only to point out that the phrase "credit repair" can refer to many things. Pulse seemed to think that it referred only to the validation/estoppel sequence. Of course I realize that many people cannot afford to pay their debts.

Let me repeat that because I fully understand and empathize: Many people cannot afford to repay their debts in accordance with the original agreements that gave rise to those obligations. The purpose of my post is not to chastise, criticize, present myself as someone who's wonderful, present myself as someone who's an S.O.B., or anything else. My only purpose was to point out that credit repair, for many people, has to do with cleaning up ones credit reports irrespective of their debt load.

That said, I do have advice for those who are dealing with a lot of debt:

1) Be very careful about waking up sleeping dogs. Research, and then do more research. Search this board and others regarding your creditor(s). Seek lots of advice BEFORE you begin. Don't let your first appearance on the board be an "uh-oh, look what happened to me" posting.

2) If the dogs are awake and attempting to collect, then by all means request validation. The dogs are already frothing. Follow through the whole sequence, including 2nd validation (if applicable to your strategy), estoppel, etc.

3) If they validate in accordance with the law, then good for them. You owed the debt anyway. At that point, if they have violated any provisions of the FCRA, FDCPA, FCBA, or any other law, then send an intent-to-sue letter specifically outlining their violations. Then, if you have a good case, you might consider going through with small claims violations.

4) If they haven't violated the law, but they did properly validate, then move to a negotiation strategy. Negotiate, negotiate, negotiate. Everything is negotiable -- especially in cases where a substantial debt was purchased for pennies on the dollar. You are dealing with businessmen and businesswomen, not the arbiters of ethics or morality. Remember that these people are out to maximize their own profit. Negotiate in good faith, and be friendly. If you can, do it by letter. If you do it by phone, then tape everything. If you live in a state which requires that you tell the other party that you are taping, then do so. If they validate and don't break the law, you must switch to a negotiation track, but do it quickly before they file suit against you.

I'm writing this for the benefit of some newcomer who is reading this sad tale and wondering how to proceed.

A few things to remember:

a) Credit repair doesn't mean "send validation letters to get out of paying my valid debts."

b) If no attempt is being made to collect a large debt, do serious research about your creditor(s) before awakening the vicious dog.

c) If you do request validation, understand that you are risking the fact that you may have to repay the money you borrowed (what a shocker, lol).

d) Irrespective of whether they validate properly, you can threaten a serious lawsuit with teeth if they break the law.

e) If you do seek validation, understand that there is a whole sequence and strategy that goes with that, not just one single letter.

f) If they validate properly and do not break the law, switch to a NEGOTIATION track immediately, and do it with good cheer and good faith. You borrowed the money and apparently spent it on stuff. Now it's time for you to work with whoever owns the debt to arrive at a payout plan.

I'm writing too many novels today. I apologize. Hope this helps somebody, but if not I had fun writing it regardless.

Doc

 

Re: Arrow Followed FDCPA - I am sad

By the way, Pulse, I don't think the consequences you are experiencing are out of line with your behavior, irrespective of the advice you received on a bulletin board. This is what happens if:

a) you borrow money and aren't careful about working with the creditor to repay the debt

b) you don't do much research regarding credit repair -- to the extent that you can't even define "credit repair" correctly

c) you expect an easy way to dodge your debts (something about which your husband apparently gave good advice and warning)

d) you have no plan for "what happens if" (it sounds like you just sent out a validation letter blindly expecting that to be a magic bullet)

e) you make financial decisions and keep them secret from your spouse (my finances are separate from my wife's also in many respects, but we do share living costs, so if I do something major without informing her I'm in big trouble, lol)

Basically, you screwed up all around. Yes, I feel terrible for you. But the point of this post is to remind you that you aren't a victim here. You simply made some bad mistakes -- as all of us do in life from time to time. This was your turn.

Doc

 

Re: Arrow Followed FDCPA - I am sad

Well, pulse, it sounds like you know something I don't, lol. Actually, I've had plenty of turns in my life -- I could detail one terrible and painful mistake after another. I think it's all a part of being human, unfortunately.

Doc

P.S. Are you coming to visit me? That ominous "SEE YOU SOON" sounded like something out of a Stephen King novel.

 

Re: Arrow Followed FDCPA - I am sad

You're a joke.

You turn on members who are here to help you?