Collection Agencies - do they sue for debt under $500?

Yes they do unfortunately as far as I know. If you receive anything from a collection agency you want to send a debt validation letter in regards to it to make sure it is yours and the amount is correct.

Yeah, collection agencies can sue people to collect debts. There are several examples in the site where people were sued by the collectors. If the collector successfully manages to get a judgement against you, he can garnish your wage and can even put a lien on your asset.

Are you facing any such threat form a collection agency? pls let us know that, so that can help you further .

However, the agencies often use this as a scare tactics to influence the debtor to pay the debt. If they have a proper intention to sue you, they've to serve you a subpoena first.

Umm... That would be Summons and Complaint. A subpoena is a requirement to produce info, docs, a person, or what have you.
To the original poster: If you've got a CA after you, we can help you figure out what your options are. If you want help, just ask.

Technically no. They are not capable of doing so. They must hire an attorney in your jurisdiction to do the actual legal work.

Well..what if the CA's DO NOT live in your jurisdiction? Do they have 'sister' companies, in your area, that they go through? I often wonder about that.

Well..what if the CA's DO NOT live in your jurisdiction? Do they have 'sister' companies, in your area, that they go through? I often wonder about that.

Excellent question and a very hard one. Every state is different. Some require licensing by debt collectors and bonds, they must be a registered corporation and have a registered agent.

If you refer to my topic on LVNV Funding Questions pages 6 and 7 have more information.In my state I am disputing the legality of a lawsuit.

In Massachusetts, debt collectors must be licensed and bonded. The attorney says they the Plaintiff doesn't have to be because they don't conduct business in this state, send letters, make phone calls, have no employees and no place of business.

Under the licensing rules, they must be licensed as a debt collector. Furthermore they are a foreign limited liability company who's main purpose is acquisition of loans, or debt collector.

So the order of the laws are as such.

chapter 93 sec. 24 is the definition of debt collector.
chapter 93 sec.24a is the terms of license if you fit the definition of debt collector.

As far as a LLC and in this case a foreign LLC.

chapter 156c sec 48 deals with the registration of a Foreign LLC and says they are doing business with this section if they are considered to be doing business under 156d sub.A part 15, which they do fit.

also under 156c sec.5 they must maintain an office, not necessarily a place of business in the commonwealth, to keep records for inspection.

Now what I have is a sworn statement from an attorney who said that lvnv funding llc doesn't conduct business of any kind in Massachusetts, remember from above?
But according to the state, they are considered conducting business in this state.

Also I have a dunning letter dated from 10/2007 from this attorney stating that LVNV Funding requested the law firm to help in collecting the debt because I am unwilling or unable to pay or make arrangements with LVNV Funding LLC to pay my account. So the attorney office just contradicted itself because if in fact LVNV Funding LLC doesn't contact people, then how would I be unwilling or unable to pay them? Truth is I have been called by LVNV Funding in the past, and I think I got one letter before they where a FLLC in my state.

Also attorney's at law acting on behalf of a client are exempt from the licensing in my state UNLESS the attorney is collecting solely through his law firm. The letter dated 10/2007 says to pay the law firm only and if I wish to discuss call the law firms recovery area.

So basically this is a single situation on how a debt collector from out of state can or can't sue. In my situation I am trying to get it thrown out and I have all the evidence as I have posted above.

People really need to read their state laws. If you can catch the attorney or debt collector violating laws you may win your case. I spent countless hours and many sleepless nights. Some states are real easy for debt collectors to sue in. In Massachusetts there are 512 licensed debt collectors, some are multiple companies with say 5 different offices in the USA. I think about 30 of them expired. I messed around the debt collector forums and debt collectors hate Massachusetts because of the strict laws and the harsh licensing standards.

Hope this helps.

Lots of information!! Thanks a ton!1 Also..forgive my 'stupidity', but, what is a Dunning Letter? I never heard of one. What's the purpose for one?

that was me previously sdchargers.

Dunning is the process of methodically communicating with customers to ensure the collection of accounts receivable. Communications progress from gentle reminders to almost threatening letters as accounts become more past due. Laws in each country regulate the form that dunning can take. It is generally unlawful to harass or threaten consumers. It is acceptable to issue firm reminders and to take all allowable collection options.

The word stems from the 16th century verb dun, meaning to demand payment of a debt.

The problem is the context and actions in the letters, some follow the fdcpa and some make major and minor violations.

A great case in point, Nielsen v. Dickerson it talks about how letters which appeared to be from an attorney who knew all about the books and records of debtors in fact knew hardly anything of debtors and spent,,,,,,,i think less than a minute on each case but only had such information as addresses, names, account numbers and amounts due. all the letters where on his letterhead with his facsimile signature but where printed and mailed from a different company.



just yahoo Nielson v. Dickerson I think it's the first one that comes up.

The actual collection agency can be located anywhere in the us...the CA does not have to have a local presence to collect in your state provided they have all the required licences etc. The would simply hire an attorney licenced in your state to file the paperwork and appear in court.

Well, I guess I gotta be that guy again and ask ...is all of this worth $500? I mean, if I were to apply myself on a Sunday afternoon, I could probably make $500 mowing grass and/or cleaning gutters. Not judging but thinking that maybe you could do something to earn some extra cash and get these people out of your life instead of worrying whether they will actually sue you?

GBD

I'd like to find a LEGAL job that would pay me $500 in a day's time. Where is it? And I don't mean a skilled job.

i guess GBD i have to refute.two points,one the OP never stated that this CA ever sent anything regarding the supposed debt.two this sounds like a bottomfeeder CA.i know you have a tremendous work ethic,but you have suggested this time and again.question,why should anyone do what you suggest if there is a chance they don't owe the debt period or this CA in particular?

mcguire1957 - can you tell us more about this debt? I am going through a similar situation (thankfully, almost done) with Capital One. It was a $250 credit card but with fees, it was up to $615. They threatened legal action and this group helped me a lot.. I'm sure you can get help and support, too.

funny, the post didn't show.
they will after i post this.

A collection agency can sue on behalf of the original debtor by receiving an assignment of the debt. Then the debt becomes theirs and they can sue pro se (witout attorney).

Okay, I may have slightly miscalculated, but my post is solid. Work two weekends mowing grass for neighbors, rake pine straw, clean houses, etc. I can guarantee you that in two weekends, I could make $500 or less (OP said 'under $500).

I assumed the debt was valid as the OP wasn't asking about how to get rid of a collection agency that was trying to collect a debt that wasn't hers/his.

My point was simply that for less than $500, you will go through months or years of headaches when working a little extra would get rid of them completely.

GBD

I never could make that much. I would have to work 40 hours to get that kind of pay.

If they do sue you, do try to get a lawyer. I had all the laws in court today and the judge refused to look at them and LVNV Funding still got a default judgment against me.

I am calling an attorney and I am going to file a lawsuit against them, for unlicensed collection of debt and their attorney for multiple fdcpa violations.

The judge wouldn't look at the laws and still called me a liar.

I got a summons for a credit card with limit of $500.00.Now its $1,475.00. What should i do?

OMG!! How did a $500.00 card turn into THAT much money? Well....depending on the card, I'm guessing it's late fess, etc. I had a Unsecured card ( 'bad credit card..) and it was a $300.00. It seemed like every time I turned around, the company added more and fees. When I DID make payments, the company told me i wasn't making payments on the card...that I was " paying toward the fees.' That din't sound right. I finally cancelled the card.

*Do collection agencies actually sue people? And, do they sue for debt under $500?*

Why not. With interest, attorney's fees, late fees, and other penalties, that $500 becomes $2,000.


When we get the judgement, garnishing your bank account and wages becomes a piece of cake. Like taking candy from a baby.

it looks like NNC,face to face collector is back.you should know
you are not wanted here troll.

*ignore the so called collector* :lol: