Possible actions that can be taken by creditors

Hi Fatboy

Welcome to the forums.

A credit card company can sue you only for the amount you owe to them. If the amount of debt is less, they can take you to a small claims court. You won't be allowed to hire an attorney in this court but you can take his consultation beforehand.

If the creditors want to take legal actions against you for a bigger amount, they might take the case to a higher court. Over there, you can have a lawyer for you.

One thing is very important before all this begins. If the lenders send you any court summons, do not ignore it. These summons imply that they have sued you. It becomes very important for you to respond to the summon otherwise you lose the case by default. Legal actions will further be taken by possessing your bank account or property.

Once the lenders send you any summons, you should immediately consult your lawyer. You should also arrange a meeting with the lawyer of the other party who is suing you and try to negotiate the matter so that the dispute gets settled before the case reaches the court.

If you have been served the summons and have responded to it in writing, you will still be able to negotiate a settlement even after the suit is filed. Discuss with your lawyer for your better moves.

Regards
Roxette

I was served with papers 2 weeks ago from a collection agency to collect a debt on a credit card. I was advised to contact the agency as well as the National Arbitration Form by certified, return receipt. I have received confirmation that the Forum received my letter but not the collection agency. In letters to both, I dispute the claim of the balance on the credit card (which now includes interest as well as collection company fees.) Also, the collection agency "claims" this is a 2nd attempt by them to collect the debt. There was NO first attempt. I want to try to resolve the debt directly with the bank thus avoiding the collection agency, arbitration, etc. The collection agency claims they now own the debt however. Are my certified letters doing any good? I don't want the 30 day "grace period" to pass & further action taken on the collection agencies part.

IIRC, the National Arbitration Forum is a wholly-owned subsidiary of Wolpoff & Abramson collection law firm. Look them up on budhibbs.com and ripoffreport.com before you proceed.

Thanks for your input. However, I am afraid if I don't respond to these people it will show that I am unwilling to reach a settlement & they can take further action. Can they? Don't need any more problems than I already have! Can I just write & tell them I will negotiate with the bank only? Thanks again!

They can, and likely will, take some further action. That much is probably a given.

Please, get ahold of yourself and listen to what we are telling you. We're not makin' this stuff up. Take a few minutes to scope out the other side on the websites I gave you. You can literally do that in a few minutes, and you ought to know what you're up against. Then, answer the complaint. If you don't file a timely answer, or if you don't appear in court, they can and will get a default judgement against you.

If the CA actually owns the debt, you aren't going to be able to work anything out with the OC. It's not theirs to deal on anymore, and they've already been paid.

I looked the info. up on the excellent web sites you referred me to but it looks like dealing w/these people is a no-win for the consumer. If I can no longer deal directly w/the bank, what other options can I pursue? I can't pay the amount in full & would need payment options. Thanks again!

Did you answer the summons first? I would take care of that first and then try to settle later. You don't want a default judgement for not filing your paperwork timely.

I sent the law firm AND the National Arbitration Forum a 2nd certified, signed receipt letter on 2/1/08 disputing that I had ever received a 1st notice of intent to collect. I also am disputing the amount of the loan as well as the last time I made a payment. I asked the law firm to supply all the of the pertinent information. All of this has been done within 2 weeks of receiving their letter. What can I expect now? Will the law firm likely comply & send me the required info.? From what I read about these collection agencies & the NAF, I can expect just to get hauled into court or my bank account frozen! Don't I have a right to get the correct info. on the account before any other action takes place? I've also read where I probably won't be given the opportunity to settle or make payments b/c this is now in the hands of a law firm/collection agency. So is there no easy way to settle this?

Due to a recent move & change of address, I just received a letter dated in Jan. from the law firm (collection agency) that they could negotiate a settlement for me. I'm making a copy of the letter to send to the NAF as well as the law firm asking what my settlement options are. I'll send it certified, return receipt & I still have 2 weeks left in the 30 day response time. How do these firms usually "negotiate?" Pay in full NOW???