Collect America - Please Read!!!!

But it won't let me log in! I thought I was logged in when I posted my question, but I guess I'm not! It says my account is activated, but I'm not logged in? Help!!!



DeeDeeNay

I hope I'm logged in now!

Gahhh you're having log-in issues.

But congrats on getting your PDL's taken care of!

The law office still has to follow the law..Get them to validate.

I am sorry to hear about your situation. Collect America has been using tough collection procedures on many others here. You must be sure that they are authorized for collecting this debt for Providian. Have they validated your account in writing? They must follow the federal laws before attempting collections. If you have not received anything in the mail, send a debt validation letter and know about their legal collections.

Collect America can file a lawsuit if they have purchased your file from Providian. If they hired by the credit company, they will send the account back to the original company who will decide their further actions. Get in touch with Providian and inquire about the latest status of this account. Try to work out arrangements with them directly.

You have to cover your basis before a legal hearing takes place. Send a payment proposal in writing along with some advance money. Most of the times, the companies use such threats in order to get the money faster. You need to have your back up that you are trying to take care of this matter. Send a partial payment. If they cash the check, your proposal will be considered accepted. They won't have a case against you. Complete your documentation in every way so that the judge finds you taking the responsibility

Finally! I have log-in access!!!! :D


I have access to my credit report, and I did notice earlier this month that Collect America had made an inquiry about my credit report, but I had no idea who they were.


Collect America said they've sent me correspondence, and even verify my address with me. I told them I haven't received any correspondence from them. I will check further into whether they have my Providian Account or not.

Should I call Providian to see if they will work with a payment plan with me, or is it too late to talk with them since they have sold the account to Collect America?

If Collect America can't get the money they're demanding (I don't have $3,000 up front to give them!), are you saying they will send the account back to Providian, and they will be dealing with me regading the account? Will Providian be filing a lawsuit against me? I've never had this happen to be before, so I'm at a lost. Who will I be working out a payment plan with, since Collect America won't work with me regarding a payment plan that I can make? Should I call Collect America back tonight? I can only tell them what I told them earlier - I don't have $3,000 to send them right now. :cry:

DeeDeeNay

How soon can an attorney or collection agency take money out of a banking account to apply towards my Providian deliqunent credit card? Do they have to take me to court first, and the court assigns when Collect America can do this, or can Collect America do it as early as tonight or tomorrow? I haven't given out my banking account to anyone, and I don't think that kind of info shows on my credit report, but I don't know. Thanks!



DeeDeeNay

They have to go to court first, Dee.

Thanks Jessi, but I'm still confused about something. Who could file the lawsuit - Collect America or Providian? Will Collect America send the account back to Providian if I can't pay the $3,000 up front ASAP (they want the money by the end of the week, and I don't have it)? How long does it take for a law firm or collection agency to file a lawsuit and send out paperwork to the debitor?

ok. Even if they bought the Debt from Providian ( good chance since providian was bankrupt and was selling everything they could to stay a float till the WaMu vultures added them to their stable of loan sharking activities. This was the first and only contact you have had with Collect America? If yes then they must send you written notice within 5 days (if they do not send this notice you can sue them for $1000 per violation of the fdcpa). Send them a request for validation. It sounds like they are trying to go around the FDCPA. SO you need to establish a paper trail that you are trying to address the debt. Just the act of filing a lawsuit does not mean they can begin garnishing wages or placing liens on what ever property you have. That has to be ordered by a judge (A credit card is unsecured credit, so they cant place a lien for that anyway). Should you receive a summons, make sure you answer the summons and that you appear in court on the date specified. failure to appear will grant them a judgment in default. When you go to court, you will have th opportunity to explain your situation, and the judge will take your circumstances into consideration. Even if they do Garnish your wages the law limit how much they can take from your pay ( it varies by state, but is usually capped around 25%, but the court will take your other debt into account when making this determination. In short they will be forced to accept payments (from the court) against this debt any way. They probably know this and are just trying to scare you. DId they say when they would be filing this lawsuit? Threatening to file suite if they really have no intention to is another violation of the FDCPA (another $1000.. See $2000 of $3000 already with pursuing these penalties.


I may be wrong, but I think they are trying to scare you call their bluff. They will ultimately have to take a payment either way, why insist on going to the expense of a court proceeding just to be told they have to take payments anyway ?

Check out this page for some more info. CUt and paste the address into your browser.
budhibbs.com/debtcollectorpages/collect_america_cacv_bud.htm

I have no date as to when they will be filing a lawsuit - they did not give me a date when I asked them when will the filing take place. I haven't received any letters from them yet, and my first time talking to Collect America was today. Like I said before, I noticed on my credit report that they had made an inquiry, but that is all. I had no idea who they were then. I just called Providian to see if I can talk to them again about payment arrangements, and again I couldn't get through to talk to someone, but I was told that my account has been sold to Collect America. So I guess I'm dealing strictly with Collect America.

Can anyone answer 2 questions for me, please?

1.) Should I call Collect America back tonight? The lady lawyer I talked to today told me to call her back after I decide what to do about the account. I already told her that I don't have the $3,000 she's demanding up front, nor the $900 a month for 90 days she's demanding I pay (this is their way of coming up with a payment plan for me) to pay off the account. They won't agree to monthly payments over a period of time longer than 90 days, nor will they agree to a smaller payment amount that I can afford along with all my other bills I have to pay.

2.) How soon can they file a lawsuit against me?

Please, someone, give answers to these 2 important questions if you have answers. Thanks so much!


DeeDeeNay

They can file a lawsuit at any time, question is will they? I think right now they are trying to scare you. Go tot eh Federal Trade Commission's Fair Debt Collection Practices Act and Fair Credit Reporting Act Web pages. There have a lot of information. Read the Read the various Staff opinions on both so you know what you are up against. Collect America will try and tell you they are a first Party collector and not governed by the fdcpa, which is a load of Bull Crapola... They are still considered a collector under the law (read Staff opinion letter to Kimberlee Arbuckle of Midland Credit.

The FDCPA web page is http://www.ftc.gov/os/statutes/fdcpajump.htm

The FCRA web page is
http://www.ftc.gov/os/statutes/fcrajump.htm


You need to arm your self with knowledge and how to use the law to protect your self. Ask for validation of the debt and how the dent was computed. Make it CLEAR that once this information is presented, then and only then will you begin to entertain repaying your debt. It is extremely important to understand how they arrived at this amount on this account. Collect America is know for inflating account balances and trying to bully customers into paying far more than they owe.

They have planned their payment structure. Now you have to put your payment plans and see if they accept it. Even if they don't, there will be a proof of your efforts. This will be important to put things in your favor. Go ahead and talk with the company. You never know a single move can change the picture completely.

Court proceedings take some time before you are asked to appear in the court. They will have to file papers with the clerk of the court. A detailed paperwork will be done and summons will be issued. This is time consuming process and after the company has paid off the filing charges, summons will be sent to your home address 20 days before the court hearing. You get the time to settle the matter outside the court.

Do not forget to check the laws in your state. The company has to follow the legal path before they can file charges against you. You will be asked to present your side of the story before any decisions can be taken.

Okay, I called Collect America back, and asked them politely to send me a "Validation of Debt" letter to me stating that the account was sold to them, who sold them the debt, and how the debit amount was calculated. The rep at CA refuses to send me the letter stating that since I know I owe the debt, they do not need to supply me with such a letter. I also asked them if they could set up a monthly payment plan that is reasonable that I can pay that would not throw me into default with my other bills, and they refused that as well. I asked them why they haven't sent me any paperwork because I haven't received any, and they said that they sent paperwork out to me on June 8th - however, I'm not sure that they are telling the truth there. I stressed to them that I want to pay the debt off, but I cannot come up with the money they are demanding right now. They got extremely nasty and yes, they've scared me, and even try to talk down the research I received here about asking for the "Validation of Debt" letter stating I have no right to such a letter. I am very upset right now, and I'm sure what I'm going do to. I'm thankful that this is the only debt I'm deliquent on right now, but if they have their way, I'll be deliquent on all of my debts soon - so long as they get their money. I want to pay this debt off, but they are making it extremely difficult, and this is just only Day 1 of dealing with them. I scared to see what is going to happen next, and I have no one to turn to for help - not even God. :cry:


I'm sorry for being so wordy about my situation. If there's any additional advice you could give me, or any additional tips, please do. You're the only help I'm receiving right now. I'm so worried about losing my job once CA starts sueing precedures. My job doesn't not appreciate garnishment of wages at all. When will this all stop???? Ever????


DeeDeeNay

If they sent paperwork on the 8th, it's possible you'll get it soon. It's only the 13th.

Send them a Cease and desist-written correspondence only letter. Include a propostition for a payment you can afford. send it certified mail so you can start a good paper trail.

Do everything by mail so you have PROOF. Keep copies of everything.

Jessie, I have a silly question to ask...


What is a "Cease and desist" letter? I've never had to deal with something like this before, so I'm not up-to-date on stuff. Thanks!


DeeDeeNay

Not a silly question at all! :)


A cease and desist letter will prevent them from contacting you by telephone.

You can get a copy of one at www.debtconsolidationcare.com/books and go to the free e-book of letters. I combined the debt validation letter with the Cease and Desist letter and added a provision that they can contact me by mail.

If they keep ringing your phone after they receive the letter, they're violating the law.

DeeDeeNay, Collect America is not paying any attention towards your gentle voice. Now, feel strong and fight with them in the legal and stronger way. If I were in your place, I would not have taken their humiliation this way. Their statement proves violation of the federal laws. Read the fdcpa and know they are not using legal collection procedures on you. Get a recording device and attach it with your phone. Check the laws if you are allowed to do the recording secretly or you need to take their permission. Remember, you will have to stand strong and face them with your legal rights. The company is violating the laws and you are taking it at your fate. Consult an attorney on how to proceed on this matter.

Write to Providian directly, explain what happened, and send them a check for as much as you can reasonably afford, plus a plan to pay a certain amount at a specified time every month until the debt is paid. Do not deal with the collection agency, and for pete's sake, don't send them any money. If you re-establish a relationship with Providian, even if the debt is written off as far as they're concerned, chances are good they'll continue to work with you as long as you stay current.

If you really think the collection agency is in imminent danger of doing something to you right away, you might want to send your letter/payment to Providian via Express Mail or Fed Ex. Be sure to send it to the correct address, and send a copy to the "payment problems/questions" address (usually separate from the regular payment address) as well.

Hope this helps. Good luck! :)

Well, If Providian has SOLD the debt they can no longer accept payment ( they can if they have only ASSIGNED the debt for collection). DeDeeNay, Check out the fdcpa link I posted a few posts previous. That link is directly to the Federal Trade Commission, the agency that Enforces the FDCPA. The actual law is right there for you to read your self, as well as several staff opinions to help you understand what the law says. If you have any questions you can call the FTC consumer help line and ask them your self. The are pretty good about helping people understand their rights (though the hold times can be kinda long).

If you know the3 debt is valid, you can still request validation of the AMOUNT they are trying to collect, other wise they can say you owe three thousand, and then decide later you owe another three thousand. Collect America is wrong. Any future contact should be via USPS. Send the letter (or at least the until they respond) certified mail return receipt or Priority Mail /Delivery Confirmation , both cost less than $5.00 per mailing. Once they respond, you have established that you have the correct address, and further correspondence can be via regular first class mail (though for documentation sake you may want to get a certificate of mailing). Conversations with them should be recorded. If you do not have access to a recording device, check this thread out for information on a free recording service available on this site. http://www.debtconsolidationcare.com/phone/

Let us know how it goes, and don't let them buffalo you, they are hoping you panic pay,and will continue to do so. If the debt is legit,then you should pay it off. But you have a right to know the full amount of the debt, and how that amount was computed.

Hi everyone! Thanks very much for your advice and help! It's greatly appreciated! :D

The latest regarding my matter is that Providian has sold the account to Collect America, and I cannot get in contact with a live person at Providian when I call. I keep getting a recording stating that my account has been sold to Collect America.

I was contacted by a debt consolidation firm from this board, and when I told them of my situation, the lady requested I call Collect America, and ask them how much they would be willing to accept as monthly payment through debt consolidation. I called Collect America, told them that, and they said that they will not accept any payments through debt consolidation, and they are not bound legally to accept it, and they are legally trying to collect a debt. They then said that because I stated the account is valid, they are compiling their papers for lawsuit, and will be filing them with the court system in Central Ohio, and I will be served with a sobpena (I hope I spelled that right) soon. I asked them how soon should I expect notification from the court, and they refused to give me an exact time frame, just that I will receive it within weeks. That was the end of the phone conversation.

I called the debt consolidation firm back, and when I told them what Collect America said, they said there was nothing they could do to help me. That was the end of that phone conversation, too. I was crushed. :cry:

So now I'm waiting for the sobpena. What exactly is a sobpena? That's a court order to come to court and stand trial, right? And will it be mandatory for me to go to court? What should I expect in court? Will the judge at least be reasonable regarding my other bills so that I can pay them and the Providian account, and not fall behind again on my other bills, as well as get Providian caught up and paid? I've never been summons to court for anything before, so I don't know what to expect. All I know is that I do owe the amount being asked for the Providian account (the amount Collect America is asking for is valid and correct, it matches the amount of the last statement I received from Providian before the account was sold), and I do want to pay it off. I just hope I won't be forced to miss car payments, and I lose my car, or forced to miss payments on my other bills, and I end up being summons to court for those bills, or I end up having to file bankrupcy because of this wretched Providian account that I messed up on.

Any additional tips, advice, help you could supply would be greatly appreciated. I'll keep you posted on what happens. And I haven't heard from Collect America again since our last phone call, and I received a collection notice asking for payment on the debt a few days ago after the first phone conversation I had with them.


DeeDeeNay

I forgot to add that I won't be doing any "panic pay" because I don't have the amount they are demanding. So they won't be getting any money out of me until the judge assigns how I'm to repay the debt. I just hope the judge will be fair, and not cause me to jack up the rest of my debts. I just got all my other debts current, with no more Payday Loans invovled, nor being used!



DeeDeeNay

Another thing I forgot to mention is that I don't have money necessary to pay a lawyer to review and advise me of my situation. I have very little money left over after paying my bills for the high cost of a lawyer's help. So what could happen to me if I don't have a lawyer's help? Can I possibly lose what little I have because of my mistakes with Providian? I don't owe my car - it's leased with 2 years left on the lease, plus my mother is the co-signer of the lease. One of the personal loans I have, she's a co-signer of it, too. I don't own a house, nor any property. I have Cable TV/Internet. Could I forced to give up Cable TV/Internet? I'm three months' current in payments with them, so I don't have to pay on it for awhile, but could the judge make me give it up? I pay rent to my Mom (I live at home with her). I hope my rent money won't be taken away. And if my car lease is taken away, I won't be able to get to work - my job isn't on the busline, and I've been there 12 1/2 years. My Mom's car is currently being used by my sister to travel to and from work because she lost her car when she lost her job two years ago (she lost her apartment, too, and had to move back home. Thank God she has a job now).


DeeDeeNay

I dont' think they can take your car since it does not belong to you..And I don't think they'll make you give up your cable tv--Although that would give you a little extra money to work with.

If they take you to court, they can take no more than 25% of your income until the debt is paid.

If they take up to 25% of my monthly income, that averages out to $509.16 a month. I sure won't leave much money left over for me to pay my other bills, which means I might have to file bankrupcy. I'm going to be in default with the very bills I just got current. What am I going to do? :cry: :cry: :cry: I'm crying so hard right now, I can barely type anymore. :cry: :cry: :cry:



DeeDeeNay

Will the judge be willing to work with all my debts so that each one and Providian will be paid on time, and none of the other debts default as I pay off the Providian debt? Or will the judge disregard my other bills, and just let them fall into default. None of my bills except the cable tv can't be given up - they are loans, car note, rent, car insurance, and medical bills.

DeeDee, please relax! :) Everything is going to work out I promise! I'm sure the judge will be willing to work out a decent payment arrangement.

What I would do if I were you, is send a payment by money order of what you are able to comfortably pay each month to Collect America along with a payment proposal. Send it certified mail.

If you do get a subpoena to court, you will have proof of trying to pay even if they don't accept the payment. This will look bad on the CA, not you.

Do make sure you go to court though, or they may get a default judgement and then you will have no rights as far as payments go. Make a budget, and work them into it and be prepared to make payment arrangements.

This Collect America has violated the law big time. They have to send you something in writing. They have to give you time to validate the debt and that they are authorized to take your money to pay your debt. With all the scams going on how can you trust someone who calls you on the phone saying you owe them money? Tell them you must have something in WRITING and when you get that, you'll discuss it then. If they validate, offer them a payment plan in WRITING. Do you have their address? If they refuse your plan, you have evidence you tried to negotiate and they refused. Where in Ohio do you live? If it makes you feel better, call the court and ask them if a suit was filed. Most likely they're trying to scare you(threatening a law suit is a no no). They're violating the law. Don't let them!

Yes and if they threaten and DON'T take you to court, you can sue THEM $1,000 per violation.

Well, since you know the debt is valid, and you want to pay it in a reasonable manner that is financially responsible to your other debts and creditors, you now need to begin damage control / Documentation.

First. Put Your payment proposal in witting Mail it to them CMRR or PMDC. ( This will show you have made and effort to address this issue,and your willingness to work out a solution, hopefully they respond in writing that they will not, and bolster your case. You could even make small token payment in the interim to show your desire to pay it ( though use Money order, do not send checks form your accounts). If the payment are returned, then that if further evidence against them. Keep your receipts and stubs for the money orders to present to the judge. So if they try and say they never received them, he may order them to credit the amount of them towards your debt anyway.

When you receive your summons, Do the same thing tot he attorney they have retained to represent them.

MAKE SURE YOU SHOW UP AT THE COURT DATE. If you don't they will get just about anything they ask for and the judge will not take your other responsibilities into account at all.

When you go to court, explain to the judge that they contacted you by phone and told you all or nothing and refused to discuss alternate arrangements, present your documentation, and state your willingness to work out a solution( Basically make them look as SH**y as possible). The judge will take your financial situation into account when he makes his ruling, so make sure you have all your support documentation ready to go.

I commend you for acknowledging your debt and responsibility, and for wanting to to address it rather than hiding from it or trying to use the laws to get out of it all together.

I never suggested she should use the law to get out of paying her debt, but the CA needs to play by the rules and it sounds like they're not.

Clay,

Let me ask you a question. Since the account has been sold to an outside CA, do they still have to validate the debt per the fdcpa laws? I'm still learning this stuff and you seem to have a good grasp on it. I know they can sue since the account has been sold to them. Don't they have to send something in writing first? Or at least attempt to come to payment arrangments with the customer? It seems that she is more than willing to pay the debt, I think she just needs a comfortable monthly payment.

Scooter,

I didn't get that out of your post at all. I'm sure people think I have tried to get out of my pdl mess by not paying them at all. The ones that I have remaining and still fighting against, I have paid the principal amount, fees, actually overpaid some by hundreds or thousands of dollars. I haven't tried to get out of anything by using the law. The laws are there to protect us against unethical collectors. I agree with you on that one.