I received the first letter from Foorster and Gaarbus in NY (where i reside) for a recently sold Capitl One debt of $6,000+. Tomorrow (today) will be 30 days since I received the letter and I have not answered them, but wish to let them know I contest the debt. Do I have time to mail it to them, legally? Is a phone call advisable? Thinking about admitting the debt and trying to settle... is this not advisable in any realm? No I do not have the funds to settle anything but in a payment plan. Should i call them tomorrow? Any help is appreciated. Thanks!
Forster and Garbus is a collection law firm, so the fact that Capital One has assigned the account to them means that a lawsuit is being considered. Therefore, the LAST thing on Earth I would recommend doing is calling them, as anything you say (such as admitting that the debt is yours and saying that you have X amount of money to pay as a settlement) can and will be used against you in court if a lawsuit is filed. The wisest course of action would have been to send a letter within 2 weeks of getting their initial communication stating that you dispute the validity and amount of the alleged debt. By sending a dispute timely, and refusing to admit anything or offer anything, you are making it clear that you WILL at least attempt to fight this, and that they will have to prove their case--not just show up and walk out with a default judgement. If you contact them now and admit ANYTHING, or offer anything as a settlement, that will merely encourage them to go after you MORE aggressively. Their thinking will then be that since you've admitted that the debt is yours (which they will no doubt record you saying) and offered X amount of money to settle, therefore they might as well get a judgement; then they can seize/garnish the X amount that you offered PLUS the remaining balance, interest, attorney's fees, etc. Of course whether or not they sue now, or put your file on the back burner probably depends on other factors, such as whether your credit sucks, or this is the only account you defaulted on, the presence and magnitude of other debts, which might make you file for bankruptcy, whether you are currently employed, and whether you own any vehicles or real estate which they could place a lien on. If you are pretty much "judgement proof" and your credit reports show this, then they may very well leave you alone, at least for the time being.
Thanks - this is great info, but I got their letter 29 days ago and tomorrow (today) is the 30th day, as stated in their letter, to contest the allegation. I hope I can email them a letter then!
Like I said, your best course of action is to keep your mouth shut and DO NOT ADMIT ANYTHING. Do not communicate with these people. That includes email!
Get a letter off today certified mail return receipt to both F & G and Cap One that says 1 - I dispute this debt 2 - I request this debt to be validated 3 - You request consumer arbitration as per the terms of the agreement If you don't you will give up certain rights you have. Foster & Garbus will most likely sue. You need to get a copy of the credit card agreement and read up on the arbitration clause. Also do some research for other boards that talk about the subject.
