$2100 Delinquent Credit Card Debt...A law firm is calling me?

Question

I've posted this in the credit section, but I was hoping to get a few more answers from you guys, so I am posting it in this forum as well. Sorry for the crossposting.

I got a call from the Joe Precido Law Firm today, and the guy there says unless I pay $2100 immediately, they are going to take legal action.

Can they really do that?

What is the worse possible thing that can happen if I don't pay them immediately? I offered to pay in installments, but according the words "they are not an financial / loan institution", they are not willing to do so.

What should I do? The guy says he will expect a call from me by 12:30 tomorrow, in an effort to allow me one last chance to clear this up.

Anyone else had experience with this before? What did you do?

Answer 1

If you are in default under the credit card agreement, yes they can take legal action.  They can file a lawsuit for monies owed and if they win, they can obtain a judgment against you and garnish your wages and/or bank account and file liens against real property that you may own.   They have likely already notified the credit reporting services of your delinquent account which will have an impact on your credit rating or credit score and make it harder for you to get credit in the future.

Obviously the credit card company turned the matter over to the attorneys for collection, and the attorneys are not authorized to agree to installments, or the attorney is just a bully.  But if you can get ahold of the credit card company and reason with them, perhaps they will accept installments and tell the lawyer to back off.  

Also, if you don't want the law firm calling you, under the Fair Debt Collections Act You can require them to contact you only in writing.

Answer 2

As long as you are making payments they can't do anything to you.  They have probably already reported you to the credit scoring.  Thats about the worse thing they can do to you.  They are just full of hot air.  They are here to scare you.  Don't let them.  Same thing has happened to me.

Answer 3

If you are offering to make payments they cant decline that. Send a payment and tell them you mailed it out, if you are making payments they cant pursue further legal action.

Answer 4

If this is a credit card, don't stress yourself too much over it. The worst they can do is try to sue you. But that probably won't happen. Just give it a little time. They'll eventually settle for a lesser amount, or agree to accept smaller payments. That's better than getting nothing at all. And $2,100 may seem significant, well, it is, but I don't think they'll come after you as hard as they do people with much higher balances. Plus, lawyers and collection folks love to use scare tactics. I say hold out for a settlement.

Answer 5

You can tell him to only contact him through mail. That will stop the calls.

Answer 6

Yes, they can take legal action. If you owe the money and you haven't repaid it, per whatever terms and conditions you agreed to, they can come after you.

The advice below--that as long as you're paying they can't do anything--is not correct. For example, if the minimum payment on the credit card is $75 and you pay $50, you're violating the terms you agreed to. Just as if your car payment were $300 a month and you decided to pay $200.

The worst thing that could happen depends in part on the laws in your state. They might be able to garnish your wages, or those of your spouse. They might be able to get a lien against your home, if you own one. Or a lien against other things you own. I expect the credit card company has already reported your delinquencies to the credit bureaus, so your credit is already being damaged. But if it escalates further, your credit will be damaged even further.

The law firm is playing hardball. They probably will negotiate, but you'll have to work on that.

Answer 7

Yes they can sue you!  What you think you can charge things and not pay and get away with it?  Stop being a low life and pay your bills!