OK, I'll try to give a quick background. In April of 04, I lost my job. I went back to a previous employer, and was hired, but making alot less. Unable to make the payments on my credit cards, I decided to seek the help from Preferred Financial Services, (PFS), to help in paying off my debt of 4 credit cards, totaling $9000 It sounded good at the time, and I was scared. I was under the impression they were contacting my creditors to inform them of the program I enrolled in. Since then, I get calls 4 times a week from CA's trying to get the money. I've sent all letters I have received to PFS, in hope that the phone calls and letters would stop. Well, they haven't. A few weeks ago, I had a Sheriff come to my home and serve me some papers from one of the CA's. Now, I have all intentions of paying off this debt, but in small lumps.. The CA's are demanding payment in full, or else they will proceed in arbritations. The other day, I received a voicemail from "Citibanks Fraud Dept". The gentleman said that if I did not respond, the debt would be considered fraud, and I would be taken to court on fraud charges. What should I do now?
Ok, you have been served with a lawsuit, please don't ignore it. Save that voicemail! Sounds like a CA.
Fraud? That's new to me. Save the voicemail by all means. If the account is valid and you intend to pay it AND the call was from a CA, he has just committed a MAJOR violation of the FDCPA. You can't misrepresent the type of legal action intended to be taken if it can't be taken. If you signed up for a card and don't pay it, it's considered default and a justification for collection...but it certainly isn't fraud. Am I mistaken here, experts?
And by the way, jlynn gave important advice: Don't ignore the lawsuit. Here's a link that may help: http://creditboards.com/forums/index.php?showtopic=132612&hl=lawsuit You'll have to register with the forum, but it's worth it!
