I had a credit card that went delinquent couple years ago. Last year, I called the OC and they redirected me to a CA. I sent couple of DVL to the CA and in response they sent me the credit card account statements. Using the PFD, I tried to negotiate and offered 40%, however, they were not wiling to take anything less than the 100%. Today, I received a letter from an attorney in which he has mentioned that he has been retained by CA to collect the entire balance. The letter also states that the law gives me 30 days to dispute the validity. Just had few questions on how to proceed from here: 1. I guess my first step would be to send a DVL to this attorney to make sure he's really representing the CA. If I'll send a DVL to this attorney, is he required by law to first send me a validation before filing any lawsuit or can he file a lawsuit regardless of when he sends me the validation? 2. The original credit card limit was $1500 and the CA and the attorney are trying to collect $2500. Can they legally collect more than what the original credit limit was? 3. What's recommended: sending a PFD to the attorney or just calling the attorney and doing all this over the phone? I just want to resolve this but not sure what to do. Would calling the attorney and offering a PFD on phone can have any bad affect? 4. The letter also says that should a judgment be obtained against me, I'll be liable for costs of filing the lawsuit, services of process, and attorneys' fees permitted by statue or other costs awarded by the court. Is this really true that even though they are asking for a $1000 more than the original credit card limit and still they can add all those charges on top of that? Is there any law defined for a maximum amount that they can collect if the original credit limit was just $1500? I just don't want to end up with a debt of 3 or 4 times the original credit limit. 5. What can I do to have it resolved for an amount less than or up-to the original credit limit ($1500)? Thanks for the help.
1) they wouldn't be able to do any collection activity before providing validation. 2) interest and other fees can go above the credit limit. 3) phone is usually not recommended, it's better to have documentation. 4) yes, court costs and legal fees can be awarded.
I'm not sure if there is a cap. But something came to mind while scanning over the FDCPA... § 807. False or misleading representations [15 USC 1692e] (3) The false representation or implication that any individual is an attorney or that any communication is from an attorney. Are you sure this is an actual attorney or could it just the CA claiming that they are? Is attorney address the same as the CA, how about the phone number... different? Have you tried calling the number just to see how they answer? I wouldn't put it past a CA to do this. Since the debt is not out of SOL, and since the CA appears to be able to validate, only thing I can think of is checking all of your credit reports to see if both the OC and CA accounts are all reporting the same and correctly. If not, you can dispute the account as incorrect and if they simply verify back with the CRA's that it's correct, I *believe* that that would be your first violation of the FCRA you'd have them on. Under FCRA they have to report 100% accurate information, and it can't be valid if one report says charge off date is 1/1/01 and another says 3/1/01, etc. It's a violation that carries a penalty up to $1,000 per incident.
Thanks for the reply. OC is reporting it as: Status: Transferred,closed. $1,390 written off. CA is reporting it as: Credit Limit/Original Amount: $2,100 OC closed it in Dec 11 & CA opened it in Sept 12. It says on my credit report that CA is a Debt Buyer. As a first step, I'll be sending DVL to this CA's attorney. I can resolve it for an amount less than or up-to the original credit limit ($1500). I just don't want to pay for any lawsuit fees etc and would like to resolve it before they proceed with the lawsuit. I am planning on sending another PFD as well. I have read in this forum that before making them any payment, I'll be sure to ask them to send me the signed PFD in mail, etc. However, just wanted to find out if any body had success with calling a CA or their attorney and resolving it over the phone. Also, is there anything I should be careful of while talking to them on phone? Thanks
Well, talking on the phone could in some states could open you up to reset the SOL, if you acknowledge the debt. CAs use a script (typically) they are good at trying to trick you, into things that are adverse to your interests. Another thing to look for in their letter. WAS IT SIGNED PHYSICALLY, BY THE ATTORNEY?
Yes, it was signed by the attorney. So, looks like my options are to send a DVL to this attorney and then later on send a PFD. Is there anything else I could do?
Do you mind tellings us who the CA is....perhaps one of us have had previous experience with that particular CA and can offer you some advice as to what has worked in the past or what kind of a CA they really are.
An update in my case, I contacted the attorney and we both agreed for a settlement. They also sent me a letter in writing for the same. I am going to send a cashier check to them, in next 1-2 days. Just wanted to find out, other than the payment confirmation, is there any document I need to specifically ask them to send to me? I just want this to be closed forever.
