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cstammel · #1 08-13-2008, 04:16 PM

So I had a credit card in college that I never paid off. I've let it ride for three years now with a total of $3500 unpaid. I just got a copy of my credit report that states that a company by the name of Cach LLC has the debt. This is apparently the notorious Collect America outfit and their branches of lawyer hooligans scattered about. I have not received any formal correspondence from them, that I know of. I have been reading about what to do and it seems that I have a few options but I don't know what will work. I want to pay this off, over time, but I don't want to get wrapped up with legal actions or a bogus company that will not take payments from me. Also, I don't know if they bought the debt or if they are "holding" it for Chase. I did have papers served to me back in '05 directly from Chase about the debt. Never responded. Now what to do? Contact this bogus company with a DV? I have read that once people have done that they have been taken to court immediately. Do I contact Chase first and try to make arrangements? Do I just keep my mouth shut and hope this goes away? I really could use some help here. Very confused..... Thanks for anything you could help with

NASCAR_Devil · #2 08-14-2008, 03:57 AM

If you were served in '05 and never responded, likely you have had a default judgement entered against you already. Contact the court of record and request a copy of the file to confirm.

cstammel · #3 08-14-2008, 04:21 AM

But if I have them send a file to confirm, what should I do then? Does that mean Chase would still hold the debt?

NASCAR_Devil · #4 08-14-2008, 04:36 AM

How is Chase reported on your CR's? If they have a $0 balance and "Sold/Transferred", they no longer hold the debt.

cstammel · #5 08-14-2008, 05:24 AM

says transferred and has a $0 balance. The other two say $0 balance as well, chargeoff/collection. So I guess these Collect America guys own the debt, which means they bought it for pennies on the dollar. any use in sending a letter to chase and getting them to reclaim, or is that a dead option?

NASCAR_Devil · #6 08-14-2008, 05:29 AM

Dead option. Chase is out of the picture. What state do you live in? If you do have a judgement against you, you need to find out the ramifications (wage garnishments, bank levies, etc) before you do anything.

cstammel · #7 08-14-2008, 05:36 AM

I live in NYC. It's funny, nothing ever came of this debt back in '05, but recently I had another judgment against me for a Capital One card and they were seconds away from garnishment until I contacted the court and made a deal to pay in increments. I can't imagine why this never amounted to anything and why it doesn't show up on my credit report. The county is Nassau which is Long Island, even thought I lived in Buffalo at the time. So I should contact the court in Nassau even though Chase no longer owns the debt and they are the ones who sued me?

NASCAR_Devil · #8 08-14-2008, 05:42 AM

Contact the court of record from the summons in '05. Even if Chase obtained a judgement, they can still sell it off to a JDB. It is not unusual for a judgement to not hit a credit report until some activity(dispute, new JDB) brings it to light.

cstammel · #9 08-14-2008, 05:55 AM

So by attempting to fix this, I could be doing more harm to my credit report? Is there anything I can do with this company, Cach LLC? Do you know of them? I know they are one of the worst JDB's out there. I don't want to give me them one penny more then what they paid for the debt, and I think legally I don't have to. But I would still owe 3,900 to Chase? Man, I'm so confused!

NASCAR_Devil · #10 08-14-2008, 06:25 AM

Here's some info on exemptions and SOL for NY

Interest Rate: Legal:16% Judgment:9%

Statute of Limitations
Open Acct:6
Written Contract:6
Domestic Judgment:20 (10 yr. renewable lien)
Foreign Judgment:20 (1 0 yr. renewable lien)

Bad Check Laws (civil penalty): Face value of check
plus two times check amount up to a maximum of $400 on NSF or
$750 on "no account" (Demand prescribed by law). GEN. OB. 1.1- 104

General Garnishment Exemptions:
90% of earnings, except 1st $127.50 wk. wholly exempt

Collect America are typical JDB's so be very wary in your dealings with them. I think your primary focus should be determining if indeed a judgement has already been awarded. If one exists and CACH is now the owner, they have a better legal standing to collect the full amount regardless of what they paid for it.

cstammel · #11 08-14-2008, 06:39 AM

Thanks so much for your help man. What I received was not a judgment but a summons. The only number I have on this is the number for the attorney of the plaintiff. On one page it says Supreme Court of Erie County, which is where Buffalo is, on another it says "verification" and says Nassau County on it, which is Long Island. It states that if I do not reply, default judgment will be taken. I never received any information about a judgment. Should I contact the attorney and find out what they have in their files, or try to contact the Erie County Court? I can't thank you enough for your help. If they have made judgment, they the I'm SOL on the SOL (get it?) Thanks for finding that for me, truly appreciated.

NASCAR_Devil · #12 08-14-2008, 06:41 AM

Go straight to the court with the case number. It will show disposition of the case(Dismissed, Judgement awarded, etc). Might be available on-line as well. Let us know what you find out.

cstammel · #13 08-14-2008, 06:58 AM

OK, just got off the phone with Erie County Court Clerk. Judgment was placed against me for the amount of $4523.15. I was told I should contact the lawyers who handled the case and deal with them directly. Should I do this or no? I'm just worried because I have not been contacted by Cach at all, so I wonder if they have all of my information, or what they are waiting for. I want to get into a payment plan, but is that option lost?

NASCAR_Devil · #14 08-14-2008, 07:22 AM

Also, remember that it has been accruing interest at a statutory rate of 9% since the award.

You can DV CACH and see what they come back with. If they have purchsed the judgement then they should supply you with a copy of it. Once you have established contact with them and have verified that they have the right to collect, then you can begin negotiations. Just a word of caution though, once you DV, they may move straight to enforcement of the judgement thru wage garnishment. You might want to consider some legal assistance with this. Try www.naca.net

cstammel · #15 08-14-2008, 09:23 AM

I suppose that is the right thing to do. I don't want to speak with them before I know everything that I can do, and I guess seeking legal assistance would be the best way to figure that out. You've been extremely helpful, thanks a whole lot. I hope other people read this and get some advice in similar situations. I'll update as I go.

#16 10-12-2009, 08:56 AM

They are buying your debt, then when they cannot collect, writing off on their taxes, and they are charging you a second time by sending you IRS forms.

FIND OUT WHERE THESE LAWYERS ARE LICENSED TO PRACTICE, and file a grievance with their State Bar. They can try to collect a debt, but they cannot double dip or engage in unfair practices. DO THIS. MAKING SURE THEY ARE FOLLOWING THE LAW by having them investigated by their licensing authority is the only protection you now have in the U.S. No one else is enforcing any of these laws.