Credit Card Default

collection agencies use big words like that to put fear in you, and to make it seem like they can do more to you than they really can. An investigative consumer report means they will pull a copy of your credit report to see who you are/aren't paying. (If they see that you aren't paying anybody and all your account are becoming delinquent, that is an indicator that you might go bakrupt soon. Whereas, if they see you are paying everyone else except them, they can reasonably think they will have some luck getting you to pay.) As far as their personal asset investigation, that is a line of crap; There is no such thing.

They cannot file criminal charges for any debts you haven't paid. A civil suit would mean they want to sue you. Excepting that I have never seen a company sue over a debt that is only 4 months past-due ... usually they send it to collections for 2-3 years before they sue over it.

In any case, if they do want to sue you, they need to sue you in the state where you reside. Since they are in TX, they would need to hire an attorney in MI to file and sue you there.

If you do want to pay it, I would suggest to call, or write a letter. Since the debt is relatively "young," I don't think it will escalate to a full-blown lawsuit anytime soon. Work something out with them, get it in writing, and this mess will be out of your hair in no time.

Hold the telephone! They told you that they are from here in Texas....just for giggles I ran 'em through the State of Texas, SoS Offices collection agency bond search.

None of these company names are bonded to operate in the State of Texas. Link here:

http://direct.sos.state.tx.us/debtcollectors/DCSearch.asp

You better haul back on them reins & find out exactly who they are & where from. Don't alert them that you've already checked 'em out. get an addy in Texas & report 'em to the State.

;)

Debtcruncher you are the expert in this area, doesn't the CA have to be licensed in the state where they are attempting to collect a debt from the consumer? Oh and, jump dig over to tip on and tik tak

It is normal to feel embarassed when you fall behind on your obligations. I can assure you the collection agency and Home Shopping Network look at you only as a number with dollar signs in front of it. They don't feel any human emotion one way or the other. They are soulless corporations whose bottom line is their real motivation. I will get off my small soap box now.

If the letter definitely states they are filing a civil lawsuit against you, then you should check the local court records. If they have never filed a lawsuit against anyone, then chances are they will not. Furthermore, it would be a violation of the fdcpa for them to make the threat, knowing the would not follow through. If the collection agency does not own the debt, then they probably are blowing smoke, but I have seem some that do not own the debt get authorization from the account owner to file suit. It really depends in their agreement.

If they do sue you, usually they must file in your county. If you sue them for violations of the FDCPA, you can sue them in your location or the location of the collection agency. Because the CA is in Texas, I may know someone who could handle that for you.

If their letter is threatening criminal charges, that is also a violation of the fdcpa and TEXAS law. I am not sure about Michigan. The wording sounds like others I have heard. The letter does not seem very clear as to what their intentions are. Fortuneately the FDCPA uses the least sophisticated consumer test when looking at language of debt collectors. If a lawyer cannot figure it out, it should be reasonable that a consumer would think the letter threatens criminal charges. It sounds like the letter is purposely vague on the real or intended meaning. It is like they want you to think it says one thing, but they can argue is says another. The letter just does not sound right.....?????

Not all states require that a collection agency be licensed in order to do business in that state.

can a credit card company or collection agency sue me for non payment or garnish my wages in the state of texas? also can they bring to court and file a civil law suit against me in the state of texas?

Peter Diaz--yes, they can. On both counts. They can sue you, and have your wages garnished, but they must follow the procedure. Wage garnishment in a credit card debt case cannot happen unless a court finds against you in a lawsuit--that judgment must take place before your wages can be garnished. If there has not been a lawsuit yet, if you have not gone to court yet, then someone telling you that they are about to garnish your wages is threatening you with an action that they cannot carry out, which is illegal.

Hi dogz,

First, I have to agree with what was said already--it seems really strange to me that someone would be trying to sue you after 4 months. That is not normal. Now, that doesnt mean it cannot happen, because it can, but I have yet to see anyone do it, in my limited experience. Dont worry about "charges" as they cannot have you arrested for a civil matter, which is what debts are. That letter is too vague, and because of that, the letter alone might be enough for you to take action against them. The best thing to do is to slow down, take a deep breath, and learn all that you can about the situation.

For example, I did a basic search and found only one reference to any of the CA names you mentioned, and here it is:

Check Plus Systems, Inc.
Eastern Regional Office
One Cupsaw Drive
Ringwood, NJ 07456

Western Regional Office
9901 IH 10 West, Suite 665
San Antonio, TX 78230

Website is check-plus.biz with the www. on the front of it.

I dont know if this is the same group you mentioned, but it is all that came up when I went looking for the names you posted. Please check out that website, and verify the address, or the company logo, perhaps...hopefully this can give you a little insight. The CA I just posted the info on is listed as a member of the American Collectors Association of Texas, but that is just an industry organization. It is not a government body or agency. I checked that name in the TX SoS website, and it is also not listed there as well, so they are illegally operating in Texas. Now, in Michigan, things are different....according to your state laws, a CA from out of state does not need to be licensed in Michigan as long as it is not sending money it collects into Michigan. If a CA is collecting for a Michigan-based business, then they would need to be licensed. But as it stands now, they dont have to be licensed in your state. They ARE, however, violating Texas law, well, if this is the same exact company they are anyways.

But dont let the big words fool you, all the "consumer investigation" crap is exactly that---crap. They are trying to make this sound so official and so bad that you pay immediately, because that doesnt give you time to look into your rights and act on them. I would seriously consider going to the NACA website and speaking with an attorney in your area. That letter is just too suspicious for my liking.

Oh, almost forgot, they can legally sue you in your jurisdiction, or in the jurisdiction you were in when you originally agreed to the credit agreement. In this case, you were at home, so they would have to sue you where you live.