sued by Blitt and Gaines

Hi--

We will need some more info to provide the best answers for you here. First, it is entirely possible that Cap One still owns the debt. They could still own it and at the same time hire a debt collector to pursue it for them. If that's the case, then the plaintiff would still be Cap One. On the other hand, if they sold it then no, they cannot still be the plaintiff. What you would need is to show that they no longer own it, in which case they would be trying to obtain payment that they had no legal right to. I would imagine that they still own it, because Cap One would know that they were acting illegally if they didnt.

Do you have documentation from any of the debt collectors that states that the debt was sold to them? If you do, that would make for an interesting piece of evidence to challenge their right to take legal action against you in the first place.

Next, what state do you live in? In some states, it may not be legal for a debt collection suit to be filed in small claims court. Definitely check into that one. I would guess that you live in Illinois, is that correct?

Thanks for your response. The only written correspondence we ever received from B&G is the letter they sent in response to our request for debt validation, etc. There is no mention of the debt being sold in either letter (B&G or RAB). B&G's idea of debt validation included 2 copies of 2 one-page statements one year apart, and two copies of some generic credit card terminology (the latter wasn't even a signed application). My husband called Capital One yesterday, and they wouldn't speak with him regarding a settlement. They told him that Blitt & Gaine now had the account. We do live in Illinois, and debts under $10K can be pursued in small claims court, according to illinoislegalaid.org. Also, apparently the defendant must be served at least 21 days prior to the hearing date (they've missed it by 2 days). I know the absence of a served summons means nothing; almost 1/2 of all of the Capital One claims in our county's small claims court were awarded in favor of Capital One due to default judgment, which I'm guessing means the defendant never showed up for the hearing (intentionally or unintentionally). Again, we don't dispute the existence of a debt, basically just the amount and B&G's right to collect it. But doesn't it look bad for them that they've refused to attempt settlement? We would settle for 60% of the original balance, in payments.

well, here's the problem with small claims court--they dont normally have the first friggin clue as to the laws pertaining to debt collection. If I remember right, it was Massachusetts, CA's were suing people in small claims left and right. The judges were clueless about debt collection law, and in some cases even ordered the defendants to BE PUT IN JAIL until they paid the debts! The judges often refused to listen to defendants that argued the matter of debt collection law--it was a complete mess.

This is why you need to make sure you are 100% prepared to make your case.

I would call Cap One back again and verify with them whether or not the account has been sold. They told you that "B&G now have the account"....that could mean several things. IT could mean that B&G now own it, or it could mean that Cap One hired them to collect. You need to know which is truth.

Often, the wording of the letter can be tricky, as well. For example, at the top of the letter, it may say something like "this debt has been assigned to our office by Capital One". One way to tell is to read the letter and see who they tell you to send payment to. If they are collecting for Cap One, then they will usually direct you to send payment to Cap One and not to them.

Hi,

Thanks for the recommendation. I called Cap One just now and was told by a man identifying himself as associated with the National Attorney Network that the account had been "placed" with B&G and that he could not tell me anything more about what that meant. When I asked him if there was still an opportunity to settle directly with Capital One, he said no, we would have to settle with B&G. We never received an initial letter from B&G stating that they had acquired the account. We just received phone calls, and then finally one letter in response to my request for debt verification.

Would a charge off by Capital One be indicated on my husband's credit report? If we call B&G, are they obligated to tell us if the account was sold to them? I'm guessing probably not, but maybe I'm wrong...

Do you know if B&G has been known to falsify any records, for example showing "proof" that they sent certified letters to us when in actuality they did not? This whole thing is giving me palpitations.

If you go to court ask to see the original contract with your signature. Chances are B&G will not be able find it. The case will be continued a couple of times but the case with be dismissed after a couple appearances. Do not let B&G intimidate you in to paying without proving they own the debt.

Thanks for that suggestion. I may contact B&G with a final attempt at settlement provided they produce proper validation documentation (including the original contract with my husband's signature), and copy the Illinois Attorney General. Would you advise this if they have already filed suit, or should we just wait until we go to court?

Also, should we even bother to file a motion to quash since we haven't yet been served?

how did you find out that youre being sued?

We received a letter from a local bankruptcy atty who regularly reviews our county's court docket. He said he came across my husband's name in the impending small claims cases and thought he would offer his bankruptcy svcs, which we don't need. I checked the court's website myself, and found the entry. But we still have yet to receive a summons, and the court date is 7/14. Should I bother calling the clerk of courts to see if we can quash due to non-service, or should we just show up on the 14th? I do have copies of all of our CRRR correspondence sent to them and the useless "validation" documents they sent to us. But we don't have any old Cap One statements. I also thought of writing B&G one more time informing them that they have not provided proper validation according to the FDCPA, and then copying the IL Attorney General on the letter. Is this a good idea?

Yes, Improper Service is a valid reason to dismiss the case.

You should, however, get an attorney (NOT a BK one, but a consumer advocate - got to www.naca.net for a referral or check your yellow pages). If you can't afford one, your civil court will have referrals to Legal Aid. You really need to have one, and make sure they have *experience* in winning lawsuits against collection agencies.

When you get the interrogatories, just put in response to everything mentioning the debt that you are unable to confirm or deny due to lack of documentation. File a Motion for Discovery.

The bad thing about the FDCPA is the Validation rules are very weak, confusing, and as clear as mud.

If by chance, they are able to prove the debt via Discovery, then you can negotiate for an equitable payment plan and avoid getting a judgment.

I've read alot on this forum about people receiving interrogatories and request for discovery from the plaintiff. I answered a summons 4 months ago, already had a case management meeting, and have still received absolutely nothing from the plaintiff. I have sent them requests for discovery, and a list of interrogatories which they have ignored (much like my requests for validation). At the case management meeting, the judge extended the deadline for discovery. I feel like I am just waiting for them to do something now, so reading this forum helps keep me sane. It amazes me that in 10 months since the CA first contacted me, they have yet to provide a shred of evidence that I owe them the alleged debt.

Also, something else I found interesting. They are claiming that the alleged debt was "placed" with them by MBNA, and in the court papers they list MBNA as the plaintiff, yet they want payments made out to their office, not MBNA. Seems kind of fishy. Does anyone know how long an OC will typically try to collect on a debt? What about 6+ years after it was charge off?

Thanks for your suggestions. Unfortunately we live in southern Illinois, an area lacking in attorney referral services. I've tried several avenues, including Legal Aid, but have not had any luck. Unless my husband goes to the Legal Aid offices himself (since the card was in his name, they refuse to even speak to me in generalities), which won't happen because he is working in another state (9 hours away), we will be without representation. Oh well, this can't be the worst thing I've ever experienced...

If we do not get a summons, I'm guessing I can go look up the complaint and file a response anyway since the record is public and a court date is already scheduled.

Thank you very much for your recommendations!

I THINK that once the debt has been charged off by the OC it can no longer be collected by the OC; doing so would constitute fraud.

Capital One told me the same thing, that the acct had been "placed" with B&G. And Cap One is listed as Plaintiff. But, B&G instructed us to send payment made out to them and not Capital One. So what is going on? Capital One won't say whether or not the debt has been officially sold, and I don't even want to contact B&G. They identify themselves as a debt collector on correspondence but of course don't mention how they acquired the account.

They are probably contracted out for a percentage. Many CAs prefer for you to pay to them directly, largely for bookkeeping purposes (they often pay the original creditor per month).

Charge off means it was reported as a loss on their income taxes. When it is paid off, that will change to COR (Charge Off Recovery).

This to let you know I have been very well informed on how the debt collectors work. In the first place I owe this debt collector nothing. They got this debt for pennies on the dollar and are trying to make a killing off me by charging interest plus what the debt was. The debt was charged off and was paid with the apr you pay and the credit card company get a tax limit. If a debt collector gets a debt for 30,000, he can make a million dollars off it. now, tell me that's not fraud. I do know you cannot get the real document of a original signature. I am waiting to go to court to tell the judge just how the debt collector works. I am up to date on all of this. I have a cousin as a judge and one as lawyer and Bill with the debt sloutions. so I am covered and ready to go, so I will see you in court. Beatrice Bailey

Blitt and Gaines have had several complaints, and are currently rated an F from the BBB. You should take all of your information from thier office, and any existing creditors to your attorney.

I received a letter from Blitt & Gaines informing me they have been retained by my credit card company, a bank, to collect my 2 year old delinquent account in the amount of $3,800.00. I live in Illinois, if they get a judgement against me how much will it be? I've heard they can garnish 15% of my wages, is that correct? Is that 15% of my gross wages or my take home pay?

Half of the $3,800.00 is late fees & delinquent charges. I have no documentation to prove anything and I can't afford to hire a lawyer. What happens if I don't show up in court? I only have 2 weeks left to decide what to do. What should I do?