Hi. I'm back! Quick (sort of) question. I'll describe the situation and maybe someone can give me some direction forward? My girlfriend bought an $800 exercise machine from Sears several years ago, and had one year before payments were due. Of course she didn't have the money, never used the machine and didn't want it a year later. She tried to return the item to Sears but they wouldn't take it. She eventually offered to make the payments but by that time they refused because they had just sold the debt to a CA. Then she moved apartments and sold the machine to someone for $300. A law firm CA started sending letters about taking her to court for $1100. Her reply was that she would like to settle for the $300. They refused and proceeded with a court date, interrogatories, the whole nine yards. I got involved when the court papers started coming in, and mailed in a motion for dismissal, which was denied. The law firm wrote to her saying that her answers to the interrogatories was non-responsive. I intervened and wrote back that their questions were generic "form letter" questions and did not apply to the current situation, and if they had a pertinent question she would answer it. I also asked for verification of the debt, and whether they are authorized to collect this debt. I repeated the offer to settle for $300 and the money would be gone by the end of January or so if we didn't hear from them. You should also know that she doesn't care of there is a judgment against her for this debt as she has other credit problems and one more won't matter much. There is also no record on her credit report at this time. Well, the CA just wrote back including some information about the debt. They sent some very vague spreadsheet entries with her name and an account number that really don't show anything. Then they admitted that these spreadsheets do not provide the information I requested, and if and when Sears sends them that information they will forward it to her. Then they added that they would like to settle the debt amicably. So I'm thinking that they realize the court bluff didn't work, and now they might not be able to produce any proof from Sears. The best option I can think of is to write them that we will still consider settling for $300 provided they can validate the debt properly, and otherwise to "cease and desist" or something to that effect. Any thoughts would be much appreciated. Thanks, bushka
If they bought the debt they would have the info,chances are Sears still owns the debt.They were assigned to collect
Not necessarily true. Especially JDBs buy portfolios of debt, often without any documentation. That's why it's so important to ask for validation. They very well may not have anything. And often the OC has gotten rid of some of the documentation as well when they sold the debt.
Here's what the letter says: "...At this time, I am enclosing a copy of your Sears MasterCard account information as provided to my client at the time of purchase which indicates a balance due and owing at the time of Plaintiff's acquisition of the subject account as $1131.96. Please be advised that Plaintiff as asignee of this account does not currently have the documents you requested. We have requested a copy of the original application for this account in addition to any available statements from the original creditor. If and when Plaintiff receives these documents, they will promptly be forwarded to you. "I would still like to discuss the possibility of amicably resolving this matter prior to any further litigation... I also notice that they aren't asking for answers to their interrogatories any more. Thanks, bushka
The probably bought the debt with exactly what they sent you--a spreadsheet. The few people who know enough to call them on it may well prevail. They count on people being afraid of a lawsuit and therefore settling. I'd send the letter and sit back and wait. Don't offer to pay anything, don't admit to the debt. You may get out for nothing--or they may eventually accept the $300.
It's not necessarily that they get lost. Portfolios of debt are sold with little or no documentation. That's why they only pay pennies on the dollar for it. They know that they don't have proper documentation. But if they can get some people to pay with their threats, they'll come out ahead.
Out of curiosity, can they still get a judgment even without the proper information from Sears? I don't know if I can write to the court identifying that they have no right to the claim in order to preempt them from getting a judgment. But otherwise I can still write the letter telling them to leave her alone if they don't have the documentation required by law... bushka
dispute,dispute,dispute Thats why you have to dispute to make your case in court.Start a paper trail.
The short answer to your question is yes, they can still get a judgment. Especially if she doesn't show up for the hearing. Have they actually sued her? If so, she should file discovery and ask for all of the documents. If they can't produce them, the court SHOULD take that into account. But many courts only ask if you owe the money. If you do, judgment awarded.
I don't think they've gone very far with legal action, even though there is a docket number. I can't really even tell where it stands legally. I think at this point I'd be quite surprised if they'd rather have an uncollectible judgment than $300 cash in hand. But now, if they won't/can't even produce the verification, then I don't know if she should even offer the money any more. bushka
Why do you say it's uncollectible? Depending on the state laws, they could have up to 20 years to collect on it, and may be able to add interest during that time. Are you saying that in the next 20 years there won't be a bank account to seize, or personal property to be seized and sold at a sheriff's sale? If she owns jewelry, etc, it could possibly be seized and sold. If there's a docket number, I suggest you contact the courthouse NOW and find out the status. If there's a court date, she needs to show up or there WILL be a judgment. In the meantime, try your offer again. But don't assume that a judgment is uncollectible.
