April 14, 2012
First of all I want to say you have an excellent and very informative web site. I have a question that I think will stump you.
Let’s assume I have a credit card with a credit card company. Let’s also assume that I quit paying on this account and the credit card company reports that loss on their taxes as most businesses do.
If a business would write that account off and the credit was given by the IRS on the proper form then in my opinion there is no debt anymore. If anybody owns it the government does.
My question is this. If the credit card company writes it off as a loss how can they turn around and sell that account to a Junk Debt Buyer? Just to make this more interesting I will ask a second question. If the account was written off how can the Junk Debt Buyer purchase anything that really no longer exists?
I personally don’t know of any company after a debt has been written off that will even attempt to collect it at a future date.
It just appears to me that the credit card company is trying to have it both ways. First claiming the loss on taxes. And secondly then turning around and selling something they really don’t have the right to sell.
Can I please take my star now or must I continue to try and Stump The Experts.
Thanks again for a really great web site.
June 6, 2009
Being sued by a JDB, have answered summons, requested discovery, gotten their response to my discovery and objections to all my requests for discovery. I asked for the usual – original signed contract with original creditor, orignial signed contract with JDB indicating I agreed to pay them, documentation showing they own the debt to which they provided an affidavit of account signed by one of their employees and a badly copied credit card agreement copyrighted in 2002 and the debt allegedly occured in 1999, then they provided an affidavit of clain, an excel spreadsheet with my name, ss#, date of account and account number, amount of account along with about 20 other people listed who’s name and ss# are blacked out. I went to the pretrial conference in which they asked to appear telephonically and did not so the judge said I could file for a motion to dismiss.
Filed the motion to dismiss and got a letter from the JDB attorney stating he tried to call in and sat on hold for 30 minutes. I know that there was another call before mine but it went fine so I am not willing to fall for the I tried to call in but didn’t get through so I filed an objection to his request for a reset in pretrial because he couldn’t get through based on he asked to call in and I showed and he didn’t and the court website says if Plaintiff does not show it is a default without prejudice and I sited that in my motion to dismiss and again in my objection to JDB attorneys request to reset.
Three days after I filed the motion to dismiss I get a copy of statements from JDB attorney from the original creditor indicating that I made 3 payments by express payment but I do not remember that so I pulled my bank account info. I found three payments in the amount that they say to origninal creditor but the check number that JDB attorney has on the statment for those payments does not match the check number on my bank account. I also noted on the statments that the account number for the account that the JDB is trying to sue me for does not match the account number on my Credit Bureau report as well as it has my current address on it and I do not remember ever having communicated with the original creditor since approximately 2002.
I also noted the account went to BofA and the JDB provided 2 statements from them and one of the statements says that in Dec 2006 the debt is scheduled to be written off as bad debt in next business cycle. What do I do from here. I have my credit bureau report that shows the original creditor wrote off 3/4 of the debt and shows 1/4 still remaining as unpaid. It also shows the JDB came in and purchased it in June 2006 at the same time as the 1/4 remaining debt is now showing payments but not by me. My credit bureau report also shows the JDB for the same debt as original creditor.
My questions are can the credit bureau show the original creditor and the JDB when it is for the same debt? Should I keep pushing for the JDB attorney to provide an original signed contract by me even though he has now provided these statments. Based on the fact that the account numbers on the statements do not match the account number for the alledged debt on my credit bureau can I use that as a way to prove this may not be my debt. And lastly according to these statements that the JDB is trying to use the last payment I may have allegedly made is April 2006 and the JDB bought the account in June 2006 and they are trying to sue for breach of contract and I believe in Arizona the SOL is 3 years so has that run out?
January 9, 2009
Hi Paul, the story started back in 2005. I had a friend who had a bad credit rating due to failed business. He was working fine and earning money and asked me to help him in purchasing a house.
We helped him and put the house on my wife’s name based on his promisse that after 3 years he will be able to put it back on his name. To make a long story short, he paid for 2.5 years and then he defaulted and the house was foreclosed on my wife’s name back in Feb 2008. He was evicted in August 2009.
In Sep 2008 we started getting mortgage statements from a collection agency “Real time Resolution” for a mortgage balance of $76,000 using the same loan number as the original lender which is IndyMac bank. I called, and wrote and waited on the phone line trying to get the story from IndyMac bank about this collection only to get answers as they don’t know what that is.
Eventually I got a letter from the REO department at IndyMac stating that they did not follow collection based on a recommendation from the law firm office that handeled the foreclosure, however, they suspect that the mortgage loan was sold as an insecure debt to the collection agency and advised me to contact the collection agency to find out…
I have put my wife thru the most devastating experience to help out a friend who turned to be so selfish and put us in all this mess. Is there an advise to do before I contact this agency, I am afraid that i will do a legal mistake that would open doors on us later.
Do you recommend a format to communicate with this collection agency..My friend assured me that after foreclosure my wife’s credit will take a hit for 2 years and back to normal if she kept paying her bills, but what about this collection. i tried to contact him and have him pay for a lawyer to get us out of this mess but he is not replying to my calls now, and we are stuck to solve this issue ourselves. Please help.
October 15, 2008
Received a summons today with 30 days to respond. Its a Credit Card Debt to Captl One and to the best of my knowledge its my debt. I can’t pay the debt right now. -Should I respond to the Summons? If so how should I respond? What happens if I don’t respond?
I lost everything in 2006 and have not recovered so there is nothing for them to take..
Just what should I do??
June 20, 2008
Okay… I feel like I have hit a jack pot! So, you are either going to burst my bubble, or … suggest a course of action!
A 1900.00 CC debt keeps popping up on my CR.
My credit limit for that card (Providian)was 500.00.
I was in my early 20’s when I closed it- I am 37 now.
the 500.00 was paid with interest at 700.00 (I have my old bank statement).
It is now past the SOL for reporting.
The original creditor does not have me as owing anything on my CR and refuses to talk to me about the account.
They are unable to be verified….
Write letters to the CRA’s? Oh if only it were that simple! Been there, done that…
JDB are passing me around like a game of “Hot Potato”.
CollectorA, CollectorB, CollectorC and CollectorD are all on my Credit report for this PAID debt. Only 3 at the same time though. Lexington Law gets them removed one by one because they can’t verify, but as one comes off, another with a new name for the same PAID debt pops up!
I just knew they were “incahoots”! So on a whim…. and because I have become obbsessed, I decided to check my states business license database. Yep- all current and active. A foreign License.
Upon doing a search on CEO names rather than business names I found that yes, they all have the same CEO in common, ThisNameCEO.
Finally I can prove to people I am not crazy and this is a game they are playing with me.
That’s well and good- but how do I end this game once and for all! They have 15 other comapny names they can use to put this on my report.
I don’t care about the phone calls- I can make those go away and they are not what’s damaging me. Besides, I have started to wait in anticipation for their calls with ipod on hand because I could use an extra thousand in my pocket!
Please note- I am not trying to get out of a debt. Someone provides a service or a good they should be paid! Even if you foreclose or get repossessed because you made a commitment/promise to pay. As you can see by my debt amount- I was not, nor do I live above my means. It’s the principal and the fact that they are doing this, using our credit report, as leverage to pad their pockets.
I feel, however, my situation fits the definition of extortion.
How does the game end??
What would YOU do?
By the way- IF by chance you DO reccommend an attorney- could you also reccommend an attorney’s name?
May 8, 2008
About six months ago I paid off all my debt and now have an excellent credit score (YAY!!!).
Recently, though, I received a notice from a company (junk debt buyer I’m assuming from the blog) about a 18 year old debt from a jewelry store.
There is no date on the notice as to how old the debt is, so I don’t know if they have re-aged it.
Over the years several companies have tried to collect the debt unsuccessfully. The last time was about ten years ago. It has not shown up on my credit report.
My question is: can this negatively affect my current credit rating if I don’t pay it, and what action should I take to ensure that it doesn’t? Also, I’m afraid if I do pay it it will show up on my credit as a collection.
Wonderful blog and thanks so much ahead of time for your response!!
April 19, 2008
Here’s the deal. I charged CC debt to close to $5000 on my Visa. My limit was $5000. I got behind a few months, but continued to make payments, just wasn’t making the minimum monthly because that included late fees, now over the limit fees, etc. This went on for several months before I finally spent literally every penny I had to pay almost $3K on the card. My balance at this time is now just over $2200. I get a letter the following month saying that they have decreased my credit limit to &2250 and have increased my interest rate. In the end, I stopped paying at all, felt like I was in a no-win situation because after eventually I was in another over the limit situation because of fees. I stopped paying in 2001.
I recently began getting phone calls from a collection agency regarding this card, evidently they bought collection rights? They say the last activity is 08/2005. This is not correct, but it’s been verified when I’ve disputed. I got a letter today served, lawsuit/judgement letter. I have 20 days to respond. Now my balance is $5270. I haven’t even had charging privileges on this card since before I stopped paying when the balance was just above $2K.
My question is this… is it too late to settle? Pay for delete? Both are showing derrogatory on my credit report, the original creditor and now the collection agency. Is this right? I get double hit? Time is pretty crucial, so I hope to hear from someone.
This was almost ready to fall off my report. Really messing me up. Thanks.
April 8, 2008
I lost my engineer job for about 4 years and ran up CC debt.
I’ve handled all but one, Sears, originally for $9800. LVNV apparantly bought it, and hired Weltman, Weinberg & Reis (WWR) Co. to collect. I’ve been paying $200/mo. for about a year. WWR stopped withdrawing pre-arranged pmts and now want to settle for $1,500 by 4:30PM EST this Tuesday.
My 3 CR’s shows Sears is owed $9,823, with TU condition Closed, and Exp & Equifax show Open.
If I pay WWR the settlement, don’t I have a right to have Sears show a $0 balance?
February 5, 2008
“In 81.8% of cases reviewed in our study, the court entered a default judgment against the defendant.
A default judgment is a judgment based not on the merits of the case, but on the fact that a party has not responded to a complaint or pleading or has not appeared in court when required to do so.
This failure to respond or appear is considered a default.
While the judgment is based on one party’s default, default judgments require some evidentiary showing in addition to the default.
As described below, they should not be entered where the plaintiff has not put forward any evidence of its underlying claim and damages.
In nine of the 491 cases where a default judgment was entered against the defendant, the court later vacated the default judgment upon a request by the defendant.
These requests were typically based on the defendant not having received notice of the lawsuit prior to entry of the default judgment.
In one of these 491 cases, the plaintiff discontinued the action following entry of the default judgment.
As a result, in just under 2% of cases, a default judgment was entered but later vacated.
In total, 80.0% of cases resulted in a final default judgment.
In other words, the vast majority of plaintiffs secured judgments because the defendant did not appear to answer the complaint or failed to appear at a court-ordered hearing or conference.
The number of default judgments we found in the New York City Civil Court corresponds to that found in a 2006 investigation of consumer debt cases in small claims courts in Massachusetts, which estimated that about 80% of people sued on consumer debts in Massachusetts courts failed to appear.
According to anecdotal evidence, like the stories of UJC clients described above, the fact that the defendant does not appear in court often results from the plaintiff’s failure to provide notice of the lawsuit to the defendant.
In addition, many alleged debts are years old and the plaintiffs do not have current contact information for alleged debtors.
As a result, defendants do not receive actual notice that there is a lawsuit pending against them.”
“Debt Weight: The Consumer Credit Crisis in New York City and its Impact on the Working Poor” a report by the Community Development Project, November 2007
January 31, 2008
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“Notably, the most common plaintiff, Palisades Collection, LLC, claims to have purchased a large portfolio of defaulted debt from AT&T Wireless when that company merged with Cingular in 2004.
It is not surprising then that in the plurality of lawsuits, the alleged debt had been incurred with AT&T Wireless.
In fact, among cases reviewed in this study, alleged AT&T Wireless accounts were the basis of 43.7% of consumer credit cases brought by a third-party debt buyer and 39.0% of all of the files reviewed.
Interestingly, in September 2006, five individuals who had been sued by Palisades Collection, LLC for alleged AT&T Wireless debts in New York City Civil Court sued Palisades and its law firm, Pressler and Pressler, LLP, in federal court for violations of the federal Fair Debt Collection Practices Act, 15 U.S.C. § 1692 et seq.69
In particular, the five alleged that Palisades sued them without having made any effort to determine whether it had any basis to do so.
Furthermore, they alleged that Palisades’ complaints were patently untrue and that any materials provided in support of the underlying cases against the defendants constituted inadmissible hearsay and could not be used to support the plaintiff’s original claims.
In other words, the five alleged that Palisades Collection, LLC and Pressler and Pressler initiated lawsuits against alleged debtors knowing that they could not, if required to do so, prove the elements of their claims.”
“Debt Weight: The Consumer Credit Crisis in New York City and its Impact on the Working Poor” a report by the Community Development Project, November 2007
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