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matarose

Good lord...I hope you're ready for this one, because I don't know what to do anymore. First I had a credit card through MBNA by in 2000-2003; let's just say I was an underpaid graduate student (with loans I'm still paying off). In 2003, I left for Israel and ran into some trouble; so by 2006 a collection agency called Protocol Recovery Services tracked me down. MBNA sold by debt to Worldwide Assets Financing LLC (aka Collect America). At the time my debt was $17,000. I started making payments first $1250 twice that Feb and march, followed $200/month until Dec 2006. It was automatically deducted from my account. By then I brought it down to about $12,000. Then they stopped deducting the money from account and gave it back to Collect America who hired a law firm who called me May 1 to tell me that they were suing me for about 21,000! They are willing to settle out of court for a lump sum of $11,500 but will not let me even try to do it in two payments. No attorney will help me because I am completely broke. I have no idea what to do!

Posted: Fri May 18, 2007 12:34 pm Subject:

Send the CA that you can afford now along with a proposal letter. They will accept your money and post it towards your account.

I am sure they also don't want to go to the court because of their court costs and other fees. Do you have their money gram information? You may use that info and send it to their address.

matarose · Posted: Fri May 18, 2007 1:54 pm Subject:

they said that I would end up paying the court costs. Is that true?

Guest · Posted: Fri May 18, 2007 2:28 pm Subject:

by the way its a law firm, not a collection agency!

Posted: Fri May 18, 2007 2:31 pm Subject:

Yes, it is true, you will end up paying the court costs as well.

Guest · Posted: Fri May 18, 2007 2:33 pm Subject:

So what should I do?

Posted: Fri May 18, 2007 2:35 pm Subject:

The most important thing to do if you have a court date is to show up. If you don't show up, then they will be granted a judgement by default.

matarose · Posted: Fri May 18, 2007 2:52 pm Subject:

Do you have any idea how much those court costs would be?

Posted: Fri May 18, 2007 3:40 pm Subject:

Not sure but it should be a certain percentage of the total debt.

Posted: Fri May 18, 2007 7:35 pm Subject:

If they indeed sue (although it's probably just a tactic to try to get you to pay the remainder of the debt) bring evidence that you have been paying. I don't see how a judge would award $21,000, when you show you've payed down to $12,000. That would be ruling in favor of thievery.

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At the end of my rope-- being sued soon

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