Is this suit filed in small claims? If it is, why not file for formal procedure? This will require the CA to hire an attorney and you have a better chance of working out something with an attorney that realizes you have no assets and also may make this whole thing go away if the CA sees it will have to spend alot more to prosecute this suit. Be prepared, if the CA calls your bluff, you may end up owing for the debt and attorney's fees plus prejudgment and postjudgment interest.
Why Chat, I know absolutely zero about Michigan law, and I don't where the Fed. law of 30 times min wage comes into play, but, I do know that in Az., which may be entirely different, to figure the amount to garnish, they take the min wage x 40 hours. They subtract that total from the persons gross wages and then they can garnish 1/4 of that amount per paycheck. I have never heard of any fed. law in regards to garnishments. Where can I find more on this?
Here is the Federal Code on garnishment http://www4.law.cornell.edu/uscode/15/1673.html Here are the individual State garnishment rules. http://www.edebtnetwork.com/content/collection_laws.asp Telling someone to "call his bluff" is silly,this isn't a child's game,it's a matter to be treated with information and strength of purpose. A small claims court is ALWAYS better, the rules are simpler and it is pro-se friendly.
I don't believe you are really being sued, I think this is an empty threat. They have to be licensed and bonded in Mich. even to try to collect from you, and if they are out of State they may not be legally contacting you either. Mich Small Claims Ct does NOT allow a lawyer to file! http://courts.co.calhoun.mi.us/ctinf005.htm
Definitely make sure they validate the debt. How do you know you owe them that amount? Just because they say so? They are legally obligated to prove it within 30 days. In the mean time, they must cease all collection efforts. DO NOT talk to them on the phone. Maybe you can get them on an FDCPA violation if they continue to list this account as anything other than "disputed" on your credit report. Are you absolutely sure you were served or did the collector/lawyer send you some legal-looking document?
Good to hear you're getting help. Why Chat's suggestion is a good one. We have heard of collection agencies sending out fake summonses. Tomorrow morning call the court and see if they have actually filed anything. Of they have then by all means show up and make some kind of payment arrangements so they do not garnish your pay. They say it can't jeopardize your job. but it can.
Is there a possibility of temporarily working a second job? Its not fun, but you could have this off your back in a couple of months if you delivered newspapers in the morning before going to work. Its tough when you have kids and a family plus work on top of that, but it wouldn't be forever...just long enough to take care of this thing. Just a thought.... I'm with WhyChat though...I'm really suprised to hear that Providian would sue over such a small amount. It may be their situation right now and if there is a trustee (haven't paid close enough attention other than them raising the interest rates to know if there is one), perhaps they are going after everyone. Suprising though. L
I am pretty sure this is legit. There is a local attorney handling it and it has a case number and stamps by the district court where I live. So here is what I am hearing so far: 1) Contact legal aid and find out what my options are 2) Send a letter to the attorney asking for verification of the aount I owe 3) Contact the court house and find out the date I need to respond to the summons. Anything else? Hockeymom
Yes I was surprised too--I had read this board off on and on. Most had advised not paying the chargeoff unless you could work out a deal to improve your rating. And most had stated it was unlikely that they would sue over such a small amount so I was trying to put out some other fires. If I can get this resolved, looks like I should try to deal with Captial One and see if I can reach a settlement with them before this happens again. I've read on thi board that contacting PlanetFeedback and talking with a Mr. Cooke is the way to go. Hockeymom
Validating the debt is a good thing to do. Even if the debt is legit it may bye you some time. In general a settlement offer is made for 100% or 80% to have the item removed from your credit report. Generally if one offers 60% you will not get the item removed but you will have the account paid and will not of course have to worry about a judgment which is an additional black mark on ones credit history. Generally making payments over time is not recommended because if you start making payments and stop, the account usually will be re-aged. Also, interest keeps on accruing making it hard to figure out what the payoff should be. That said, if you can afford to pay anything, you can make the offer, either for a lump sum or a payment plan. If you can pay $20 per month for 36 months you could offer that. This way you will have something to show the judge. As I mentioned before the least most lenders will take in a lump sum is 60% or 50%. For a payment plan my guess would by 80%. If you do settle, never use a personal check. As far as the interest goes, Providian charges an over the limit fee and a late fee of about $39 each for each of the six months plus interest from your first non payment until charge off. So $1647 looks correct for the balance at charge off. The rest is probably the interest since then. Did you complete the chapter 13 bankruptcy. If you did, doing a bankruptcy again is an option. I am not saying I am recommending it as an option. I wish you the best of luck.
I'm willing to fight however I am not sure what ammunition I have to fight with. I don't really have much money to make the kind of settlement that they might respond to (1000 or more). I'm trying to find the best avenue financially and creditwise. It does sound like it's not going to be possible to do both. What I don't want is to do nothing-and just be handed a judgement. I am a single mom trying to get my money and credit issues straightened out. I already have a 2nd job to make ends meet so another job is not an option. I do appreciate everyone's advice and experience. Hockeymom
I don't think you understood my question,WHERE IS THE CA LOCATED? The fact that a "local" attorney has filed, (in small claims court?) has NOTHING to do with it. If he is representing an out of State collection agency-(Jefferson?) you need to know what State THEY are in.Mich. prohibits out-of State collection agencies from operating in Mich.(this includes hiring a lawyer to file suit for them) UNLESS they are from a State which requires CA's be bonded and licensed.
Sorry, you're right I didn't understand the question or more approriately didn't read your response as thoughly as I should have. The suit papers are at home. I'll check that out tonight and let you know. I assume you (perhaps incorrectly) that you will be able to tell me whether they are in violation or not? Hockeymom
That has to be the worst advice I've ever read on Creditnet. I understand you were just trying to help, but you should only advise people about things you know something about. Saar
Yes, I can tell if they are in violation or not. If you wish to e-mail me the information my e-mail is activated. If they are "illegal" I will also send you the aplicable Mich. statutes for you to use when you answer the summons.
There is no addressed listed for Jefferson. Just a C/O for the attorney here in MI. I'll have to do a little more investigation to see if I can find out where they are from. Hockeymom
As I understand it, any case filed anywhere MUST give the name and address of whomever the lawyer is representing.If the filing does not include that information the lawsuit is invalid.Call the court clerk's office an ask if their copy of the complaint has the name and address of whoever is filing suit against you.
I called the court and they do not list an address for Jefferson Financial. The clerk I spoke to said that the attorney is representing them and that is their address. She suggested calling the attorney's office to get the address. I'm still looking on the web to see if I can locate them. Hockeymom
I looked for a "Jefferson Financial Services" at the Better Business Bureau and this is the only one in the US that seems to be a CA. http://search.bbb.org/search.html JEFFERSON FINANCIAL SERVICES, INC. 3055 Breckenridge Lane #101 LOUISVILLE, KY Type-of-Business Classification: Financial-Consumer Finance And Loan Companies
