Hello all. I am in a bit of a pickle that I could use some feedback on. My husband is an authorized user on a CC in his parents name. While he is only an AU, we are responsible for a rather large pmt on this acct. each month. However, we can no longer afford this. BK is out, as this is not in our name. I know that our only option is to try and settle with the creditor. SO, I was thinking of missing a couple of months in order to get the CC company to take us serious and possibly settle with us. The problem with that, is that the creditor will def. begin to call my husband's parents. Is there any possibility that I could send a cease and desist letter so that this won't happen? I know they would have to sign it, and that is not a problem. I just don't want them being hounded daily b/c of something that happened due to our income. I read that I could include something like I am requesting that you cease and desist communication with me, as well as my family and friends, in relation to this and all other alleged debts you claim I owe. Would this be effective? Also, I have heard that if you send a cease and desist letter that the creditor will almost inevitably recourse with an immediate intent to sue. Is that correct? Are there any other options I am missing? This is not a wee debt. It totals almost $50,000, sadly. We are trying to protect his parents and this is getting very stressful and complicated. Any help would be so appreciated.
Send a DEMAND NOTICE a recession and creation of a new contract(With a strict Cease & Desist Letter). (Public Domain- CRA (01)-1999 Good luck to you!
A cease and desist letter won't work with an OC. The FDCPA doesn't apply to them. What you're trying to do is thoughtful, but the reality here is that his parents are legally responsible for the debt. Since your husband is just an AU, he has no legal responsibility and the credit issuer will eventually come after his parents if you default on the account. As you said, $50K is no small amount, so I would fully expect that the creditor will pursue this debt using all options available to collect. Do you have any cash available to actually settle this account?
Thanks to all who responded. JoshuaHeckathorn: no I don't currently have any cash to put towards the debt. If I did, that would sure help things out, no doubt! I realize that they will come after his parents, which is why I have to try and figure SOMETHING (anything) out! I can't believe I didn't remember that a C&D letter would not apply to an OC. Not sure where my head was in that rationale, but obviously I am just stressed. I know the debt has to be paid up somehow, I was just hoping that I might be able to get the OC to work with us a little bit. Jam237: I have always respected your advice on this board. So, I am intrigued by your remarks. Both myself, my husband and his parents are now in the state of Arizona. How would I find out if a C&D would have any effect here and just out of curiosity, how might it if the FDCPA does no apply to an OC? Ifixcredit: I am looking into what you have stated. This is certainly new territory for me. Does anybody else have thoughts on sending a demand notice (a recession and creation of a new contract)? This is something I know absolutely nothing about. How would this remedy my situation? Thank you so much for your posts. I will be back soon to check responses. Reatha
PA's Consumer Protection Law incorporates the FDCPA onto creditors, the logic is that if it's a deceptive practice for a debt collector, then it's no less deceptive for a creditor themselves to engage in the practice. An example is PA's case against Applied Card Systems. ACS was engaging in behavior that if they weren't the originator of the debt would have been in violation of the FDCPA, but the state could take action against them for the same violations because of the incorporation of the FDCPA into the Consumer Protection Law. This is a good reason why, despite the fact that we most commonly refer to the FDPCA, and FCRA. Having knowledge of your states Consumer Protection Laws, and other federal consumer protection laws, such as the TCPA come in very handy...
I think your FDCPA strategy will fail, so will the consumer protection law angle. There is nothing illegal about an OC contacting you to collect a debt. They are not third party debt collectors, so forget the FDCPA. It appears to me that you have exposed the parents to a massive lawsuit and probably a judgment. This could lead to a property lien and perhaps foreclosure on their property, check your state rules for this. Also AZ is a community property state, both parents could be held liable. SO, I was thinking of missing a couple of months in order to get the CC company to take us serious and possibly settle with us. No chance. All this will do is ruin the parents' credit and trigger a lawsuit. They are the cardholder, not you. You cannot negotiate anything with them.
