Can a collections agency sue me?

Question

Here is the deal. I owe 44,000 for a auto finance. the collection agency gave me a settlement of 28,000. They said if I don't make a payment by tommarow it will go into a lawsuit. Can they actually sue me? and what is the wort damage that can happen?

Answer 1

What ever you DO NOT send a "Good Faith" payment to the collection agency.  This will cause you more harm than good.  Not only does it not "lock" them into an agreement, but it will with all probability reset the Statute of Limitations which extends the time they can successfully file a suit against you.

If you want to attempt to settle with them send them a CERTIFIED Letter with Return Receipt stating the offer.  When you send this do not sign the letter just type your name.  Only when you get an agreement in writing from them do you send them any money.  As to if they will sue you, it is actually a violation of the Fair Debt Collection Practices Act(FDCPA)  to state something that they can not do.  So if this collection agency has no power to file a lawsuit they have an FDCPA Violation, and you could turn the tables on them and file a suit for the violation.  The problem is that since it was verbal it is hard to prove.  And the main reason why you should never talk to them by phone, only through the mail.

Not knowing exactly what the debt is from, an actual vehicle loan or the deficiency balance from a Repo you also need to look at the Statute of Limitations.  If they are beyond the SOL even if they did file suit you can use this as an "affirmative defense" in court and have the suit dismissed.

Now, if the do sue you and prevail depending on your state they can Garnish your wages, attach your bank accounts or any real property you may own.

Answer 2

You should call an attorney that can answer this for you.

Answer 3

Did they repose your car yet??  Usually they reposes your car sell it and what ever is left from the organelle loan they sue you for.   That's what I've heard off.

Answer 4

My god what did you buy a Jaguar?  Absolutely yes they can sue you and for that kind of debt they absolutely will.  If they prevail you can count on your wages getting garnished for several years.  I do not say this often as poeple tend to throw this out as a fix-it-all answer, but you need an attorney ASAP. Good luck.

Answer 5

Yes, they can sue. And if they do, kiss their offer to settle goodbye. And, depending on what state you live in, they could garnish your wages.

Answer 6

If it's within the statute of limitations for your state, yes they can....and given the level of debt....they probably will.

Always get written settlement agreements from debt collectors PRIOR to giving them your money.  This should state exactly how much is to be paid AND it should state that your account will be settled/paid in full upon receipt of this amount. Never accept verbal agreements about settlements. If you pay them back $28K without a written agreement, there's nothing to stop them from continuing collection activity for the remaining balance.

NEVER give them your checking account # for auto debits. They'll take out WAY more than you authorized.

Answer 7

They can sue you.  Once they have gotten a judgment against you, not only can they have your wages garnished, but you will have a judgment on your credit report and this does not look good for potential future lenders.

HTH!

Answer 8

Absolutely, you didn't make good on your promise to pay the loan and it can go to court. However it's likely that they're trying to scare you into paying almost $30K in a lump sum. Just negotiate a payment plan with them.

Even if they refuse and decide to sue you they have to apply for judgement in court first....that will take a little while. At the end of the day the judge will order you to make payments anyway...only in addition to a collection you'll also have a judgement showing on your credit report. Send the agency a good faith money order for as much as you can afford right now....KEEP A COPY and send it by registered mail again KEEP A COPY. If they accept the payment, they are by default accepting payment arrangements. Suckers!

Answer 9

Honestly yes they can sue you, although they may just threaten you at first.

My husband had a similar problem with an electric bill, it was fraud because someone turned the power back on in his name even though he had it turned off and moved.

Now, his deal is that it went to a few collection companies. Almost every one said they were going to sue him. He started saying "take me to court, the judge will laugh", I finally said enough and got on the phone with them and got it waved. This bill was on his credit for 6 years and they never took him to court.

A lot of the time it depends on the collection agency and what the bill is for (medical , auto, credit cards... ).

I would say consult an attorney and hope and pray they are just threatening you because once they get a judgement there is no fighting it, they will garnish either your wages or your tax returns or both. Also, with a judgement on your credit most banks will not consider giving you a loan for a home let alone anything else.