Collection agency threatening to sue.?

Question

Actually it's a law firm that say they represent the collection agency. They called to supposedly give me an option to pay the debt or they would do a search on me. The guy said that I could send in $1000 along with a letter saying that I consider the debt paid. They would then have the option to accept the payment as payoff or not. I, of course, said no to that offer. The card had about a $1500 limit and they say I now, somehow, owe $8500. I thought that according to Title 15 of Commerce & Trade Section 1692g Validation Of Debt that they have to provide a record of what the debt is, who it's owed to, etc to me once I asked for it. I did that to the original creditor, the collection agency and the law firm and have received nothing. What can I do here? He said I had until tomorrow to call him back to see if I could come up with the money. I can't and wouldn't pay without the validation of debt anyway. Should I be worried? If it does go to court they will only see that I have no way to pay. My family is already on Public Assistance and my paychecks are pretty much gone as soon as I get them. Any advice is appreciated.

Answer 1

You could well owe 8500 if you did not pay the bill.  The interest mounts up really fast.

Answer 2

Sounds like this debt is beyond your states statute of limitations to proceed with any legal action (if it was not, you would have received a court summons by now).

As you stated, they are required by the FDCPA to notify you in writing within 5 days of the initial contact all information pertaining to this debt and to prove they legally own the rights to collect.

15 U.S.C. § 1692g. Validation of debts

(a) Notice of debt; contents

Within five days after the initial communication with a consumer in connection with the collection of any debt, a debt collector shall, unless the following information is contained in the initial communication or the consumer has paid the debt, send the  consumer a written notice

Check your states SOL to see if the debt is "time barred".  Your states SOL on debts is

Open Account (credit cards):  4 years

So if the debt is beyond this time frame, they can not do anything legal, all they can do is hound you about it.  If it is time barred here is a link on how to deal with them

http://www.ftc.gov/bcp/conline/pubs/aler...

Information on time barred debts.

You might also want to check and see if this "law firm" is a legit operation at the following web sites

http://www.budhibbs.com/drowning_in_debt...

http://www.ripoffreport.com/default.asp

By their actions, they sound like junk deb collectors.

Hope this answers your question

LEGAL DISCLAIMER: The advice contained herein is for informational purposes only. It is not to be construed as Legal Counsel nor Legal Advice.

Answer 3

First, since you know who the original creditor was and what the limit was, it's pretty obvious that you know this is your debt and that you failed to pay it.  Demanding a validation is pretty much a delaying tactic since the purpose is to prove the debt is valid. You already know it is valid.

Second, how old is this debt?  When was the last transaction or payment.  The Statute of Limitations (SOL), the timeframe to bring lawsuit, is 4 years in Georgia.  If the last transaction or payment was more than 4 years ago, send them a certified, return receipt letter telling them to cease and desist all contact as the debt is beyond the SOL.

If the debt is not beyond the SOL, that $1000 settlement offer is pretty good.  Either get them to send you a written offer or send them a letter specifying that this is not an acknowledgment of the debt but an attempt to clear your credit report.   Offer them $500 as full settlement.  Ask that an authorized agent sign and return a copy of your letter indicating acceptance of the offer.  Put lines at the bottom for signature, date, and print name.  When you get a signed return copy, send the payment.  Don't give them direct access to your bank account.  

Answer 4

They are trying to use scare tactics. If you haven't paid the debt all this time another week or 2 wont' matter. What you need to do is get a debt validation on the account from the credit bureau not from the original creditor or the law firm/collection agency.

Once you get it, then you can contact the law firm and negoatiate payment, payment plan along with a "pay for delete". The law firm need to send you written agreement that once the debt is satisfied that they will not just mark the account as "paid" but actually delete it from your credit report.

Don't avoid the situation because it sounds like they're ready to haul you into court and get a judgement against you. If they're successful they'll garnish your bank account.

Answer 5

Send them a WRITTEN request to validate the debt immediately.  Once requested, they will need to provide the validation before proceeding.

And stop talking to them on the phone.  Do everything through the mail now.  But get that letter out ASAP.

Answer 6

Send them a written request,they have 30days to validate the debt,and also send one to the credit bureau .If they don't provide the validation than dispute it with all 3 bureau and they will have to remove it from your credit and cease all collection efforts.