/ Register

Winning The Collection Game

Discussion in 'Credit Talk' started by dueprocess, Jun 7, 2003.

Thread Status:
Not open for further replies.
Page 1 of 3
  1. Jun 7, 2003 #1
    dueprocess

    dueprocess Banned

    This is a brief overview, very brief, of how to best defend against collections (namely involving credit cards):

    1. send a series of letters that identifies the particular dispute you have, I also recommend a notice of final payment to attempt changing the terms of your original agreement

    The reason for this next step is to establish a foundation for your dispute and increase your chances of having any lawsuits they might file, dismissed against the bank.

    2. Most debt collectors never sue, so sending the request for validation usually pushes the account back to the creditor and stops the harassing phone calls. The only debt collector that sues everyone is First Select, from Calif. owned by Providian.

    3. To stop harassing phone calls, keep a phone log of the calls, answer the phone, get the caller's name, company name and address. Send the stop calls letter.

    4. The request for validation should also be sent to the creditors, along with your dispute letters. This gives you a good chance to learn what records they do have about your account. Sometimes you can win because they only have billing statements but no contract, or their copy is not authenticated so even though it looks like your signature, it's not admissible.

    5. In my experience, you can expect to be sued by creditors in only 3-5% of the collections. There are certain factors that dimish this possibility even further. We can discuss that later.

    6. If you are sued, you must file a written answer within the time required in the summons. Most of the time, you simply need to deny each and every allegation specifically, and then demand strict proof of each.

    7. I also recommend a counterclaim, why not, they pay the filing fee in most states and their costs of litigation skyrocket.

    This is just an overview of what you can expect. You need to understand that banks today do not lend money, they "originate" it from your credit application or promissory note. This makes the bank customer the lender or depositor, just like in a checking account. The trick is in proving this in court if you are sued. I think the smart way is to win without having to show them how smart you really are. Most of my wins (or my customers' wins) were withdrawals and voluntary dismissals when the case was never decided on the merits by the court. The attorney just didn't want to answer my discovery questions.

    Best regards,
    John Gliha
     
  3. Jun 11, 2003 #2
    drdeleto

    drdeleto Well-Known Member

    What if the signature on the credit app. and receipts doesn't match the accused debtor. I was a victim of identity theft and I KNOW they don't have my signature.
     
  4. Jun 11, 2003 #3
    drdeleto

    drdeleto Well-Known Member

    Why not just let them get a default judgment and have it set aside later?

    If one does counter-sue what would you sue for? Failure of Consideration? Or that they did not disclose the nature of the contract, thereby voiding the agreement?

    BTW isn't Fractional Reserve Banking legal and widely practiced? How can a FOC suit hold up?
     
  5. Jun 11, 2003 #4
    ficofightr

    ficofightr Well-Known Member

    What is an "authenticated" copy? If they just provide a copy of my signature on initial credit agreement what do I say to the judge? At what point do they introduce the document into the record? And at what point would I dispute it as not being "authenticated" and thus not admissible?
     
  6. Jun 11, 2003 #5
    rocket1977

    rocket1977 Well-Known Member

    This is done by putting the defendant on the stand and having either sign his name various times on different documents or asking him if that is his signature. when this is done the signature is "authenticated" and fully admissible.
     
  7. Jun 11, 2003 #6
    rocket1977

    rocket1977 Well-Known Member

    Re: Re: Winning The Collection Game

    Letting a default judgment be entered against you is a really bad idea!! Judgments are not as easy to annul as everyone thinks (at least not here). especially if u admit you got served and decided to just let the judgment be entered against you.

    HIGHLY RECOMMENDED you do not follow this advice.
     
  8. Jun 11, 2003 #7
    drdeleto

    drdeleto Well-Known Member

    Re: Re: Re: Winning The Collection Game

    I remember Bill Bauer recommending that. He said there's so many mistakes they can make, there's almost always something.

    I'm not saying I agree, in a nutshell, what would you do?
     
  9. Jun 11, 2003 #8
    rocket1977

    rocket1977 Well-Known Member

    Re: Re: Re: Re: Winning The Collection Game

    File a general answer denial and make them prove their case. If they can prove their case, there is not much you can do anyway. But by filing an answer you will show thm you are not going to just lie down and take it. By allowing a default judgment to be entered against you, you risk a lot. In Louisiana, a default judgment will be upheld if you are properly served and they follow the proper deadlines. The procedure is so clear my 6 year old can follow it.

    The problem with not answering is that all the allegations in the petition/complaint are deemed to be true. Thats why its a bad idea. Your only hope would be some procedural defect. After you answer, they are more likely willing to settle because they do not want to risk a trial, unless they have absolute proof of your liability.
     
  10. Jun 11, 2003 #9
    drdeleto

    drdeleto Well-Known Member

    Re: Re: Re: Re: Re: Winning The Collection Game

    My thinking was that if you answer you have a zero chance of claiming they did not perform Due Diligence when serving. I guess what you're saying is that's a long shot. There's a better chance of them not risking a trial and having "absolute proof."
     
  11. Jun 12, 2003 #10
    rocket1977

    rocket1977 Well-Known Member

    Re: Re: Re: Re: Re: Re: Winning The Collection Game

    In Louisiana, service is effective if you serve the person directly or you serve someone in their household of "suitable and discretion." There is no real "due diligence" issue. Most lawyers do not screw up service. I just think its risky to let a default judgment be entered against you. In your answer, you can allege improper service if they did something wrong. I just think its a real bad idea to just get served, and then let a default judgment be entered. In virtually allinstances, if you are handed a petition in your hand by a service processor, service is proper.
     
  12. Jun 12, 2003 #11
    drdeleto

    drdeleto Well-Known Member

    Re: Re: Re: Re: Re: Re: Re: Winning The Collection Game

    I live in a condo behind gates security guards. That's not going to happen.
     
  13. Jun 12, 2003 #12
    rocket1977

    rocket1977 Well-Known Member

    Re: Re: Re: Re: Re: Re: Re: Re: Winning The Collection Game

    They can serve you anywhere: you at work, you walking in the supermarket, your wife out in the yard. If someone wants to serve you bad enough, they will.
     
  14. Jun 12, 2003 #13
    keepmine

    keepmine Well-Known Member

    Re: Re: Re: Re: Re: Re: Re: Re: Winning The Collection Game

    And, many states still allow service by publication.
     
  15. Jun 12, 2003 #14
    sassyinaz

    sassyinaz Well-Known Member

    Re: Re: Re: Re: Re: Re: Re: Re: Winning The Collection Game

    Bowing to you, rocket, especially your patience!!!!!!!

    And to you too, keepmine.

    Sassy
     
  16. Jun 14, 2003 #15
    lbrown59

    lbrown59 Well-Known Member

    Re: Re: Re: Re: Re: Re: Re: Re: Winning The Collection Game

    What about default judgments rendered against thoes who were never aware of any service, suit or court case;proper service or not??????????????
    ????????????????????????????????
    ?????????????????????????????????????
    ****************Most of the complaints regarding default judgments I read about here are of this nature.****************
     
  17. Jun 14, 2003 #16
    rocket1977

    rocket1977 Well-Known Member

    Re: Re: Re: Re: Re: Re: Re: Re: Re: Winning The Collection Game

    This happens, but I am willing to bet most of those who do not know of the lawsuit got served through a member of the household who never told them anything. I admit the "service by publication" is a bit archaic. Even Louisiana is not that bad.
     
  18. Jun 14, 2003 #17
    lbrown59

    lbrown59 Well-Known Member

    Re: Re: Re: Re: Re: Re: Re: Re: Re: Re: Winning The Collection Game

    V O I D
     
  19. Jun 14, 2003 #18
    lbrown59

    lbrown59 Well-Known Member

    Re: Re: Re: Re: Re: Re: Re: Re: Re: Re: Re: Winning The Collection Game

     
  20. Jun 14, 2003 #19
    lbrown59

    lbrown59 Well-Known Member

    : Winning The Collection Game

    The problem with not answering is that all the allegations in the petition/complaint are deemed to be true.
    rocket1977
    ===============

    What should you do if you have proof that they weren't true ???????
     
  21. Jun 14, 2003 #20
    rocket1977

    rocket1977 Well-Known Member

    Re: : Winning The Collection Game

    Thats exactly why you should not let a DJ be entered against you. Once you fail to answer, and a DJ is entered, you are precluded from bringing the action up again because it is res judicata . After a DJ, your only hope is improper service or if the evidence presented at the DJ hearing was not sufficient to prove their case (highly unlikely since you do not dispute any of their evidence).

    I would like to share a story of why you should always, and I mean always answer a lawsuit. The last firm I worked for was retained by a widow who was being sued on a promissory note and open account incurred by her husband prior to his death. We answered the lawsuit with a general denial of all allegations.

    Turns out the creditor lost the promissory note and some of the documentation on the open account. Had we not answered or admitted the existence of the debt, they would have recovered over $60,000.00. Because we answered the suit, and then refused to admit to the existence of a promissory note they could not produce, they settled for $4,500.00.

    Thats why, my friends, you should not avoid answering a lawsuit. You never know what the other side has/does not have.
     
Page 1 of 3
Thread Status:
Not open for further replies.

Share This Page