Sued for Debt--Why Your Chance to Win Is So Good When Debt Collectors Sue You

[splendidsplinter406]

Hi, very informative series-I have a question: I had an HFC account that had defaulted and charged off. I recently received a letter from HFC dated 1/26 stating my account had been "sold, transferred, and assigned" to S&P Asset LLC and that all payments/correspondence should be directed to them. I then received a letter dated 1/27 from Stellar Recovery(same address/number as S&P) stating that they had been "retained" by HFC to present this claim "on their behalf" Is this creditor deception?

[Fightdebt]

@splendidsplinter406 Well, something is going on, and it sounds like debt collector deception. Have you asked for verification?

[splendidsplinter406]

@Fightdebt I have drafted a validation letter and am well within my 30 days to send it. Should I send it before doing anything else? I spoke with Stellar two days ago (before watching your videos) and a "manager" told me that if I did not make a payment today their attorneys would file suit within a week(which falls within the 30 day validation period). Isn't that statement deceptive in and of itself? Don't they have to allow me to request validation before filing?

[Fightdebt]

@splendidsplinter406 Well, I can't give you legal advice. But the validation period obviously isn't triggered till you send the letter. You sound like you're on your toes, and I think you'll want to be as things develop. Have you run a credit report? The creditor is supposed to show that it transferred the debt (if it did, which certainly sounds likely) on your credit report if it's reporting you as delinquent.

[jodave0007]

i got served with out notice to my old address. The letter was written on 11/29/2010 & had 30 days to reply or I would lose my case by default. I moved out 12/01/2010 and was no there. Just found out 5 days ago. Obviously I lost the case.My dad has an a bank accnt with them & i'm on it too. I'm afraid they my wipe his accnt. what can i do to fight this case or re-open it if i lost by default?

I read about motion to vacate judgment,but not to sure. They case is open in court already.

[Fightdebt]

@jodave0007 Yes, I think moving to vacate the judgment is the first step, and if they served a place you weren't, I'd guess that should be able to do it. But time is critical.

[alexnds1]

@jodave0007 If you have a Bank Account with Bank XYZ and you have a credit card with same bank, XYZ, they can automatically pull money from that account to pay themselves, without a judgement or going to court. If your dad was a co-signer, same thing in his case. So if you are not paying a credit card move your bank account to a different bank other than the one that issued the credit card

[Fightdebt]

@alexnds1 my allowing the comment doesn't necessarily mean I agree. I believe you would need to look at the relevant agreements and applications. But as a precaution? it certainly makes sense.

[Fightdebt]

@vacationboyvideos-Just so you know, I'm not in favor of actually ripping off the banks, even if they are basically hoods. And your question does raise the issue of fraud, so I don't actually know the answer. Beyond that, though, I would worry about burning bridges that you're building up so carefully. A lot of times people looking to con others end up getting conned themselves. So I'm not sure your plan, even if legally effective, is likely to lead to your greatest happiness.

[learntoplay100]

What if your checking account was froze and you go to court with proof that the funds was from social security Income and the Judge sides with you and gives you a paper saying that the funds are exempt and the garishment be taken off and all funds be put back BUT the freeze is taken off but your funds Still has not been put back What do you Do ? Are the breacking the Law for not doing as the court orders ? Thanks for any help.

[Fightdebt]

@learntoplay100 can't give you specific legal advice, but typically if somebody disobeys the court you might ask for a finding of contempt of court and sanctions. You should also look up the law in your state about "conversion." Might find something interesting there.

[kevinm327]

Ken, Please explain the real answer to the creditor "validating" the debt. Its so grey when the part comes to if they have to or not have to send you something to show you the debt it out there ie: copy of contract or old bill... Or,do they only have to show an ammt and the name of creditor? This is an important question and the tip of the iceburg. Thanks for your help on behalf of us all

[Fightdebt]

@kevinm327 Validating or verifying the debt is a pretty minimal obligation. I think they just have to go back and ask the original creditor if the debt is valid. If that. I will address this question in more detail in another video, though. Soon, so stay tuned.

[Fightdebt]

@kevinm327 Hi Kevin, thanks for the comment and suggestion. I will address the issue in some detail in an upcoming video. Meantime, the obligation is pretty minimal. You should always require validation or verification, but the advantage appears to be more psychological than anything else. More later.

[Fightdebt]

@kevinm327 It really is gray, but I don't think they have to send you a copy of the contract. Not really sure what different jurisdictions have held on the question. When I get a chance.

[IRONMAIDENFAN2006]

whoa the debt collectors cant get yoru bank account get in it thats illegal..

[Fightdebt]

@IRONMAIDENFAN2006 Yes and no. If they get a judgment, they can garnish (take) your bank account at any time, without warning. At least in every jurisdiction I know. But you're right they can't touch it without a judgment. That's why my mission is to keep them from getting those judgments.

[markfthornton]

If there were more lawyers like you the world would be a better place.

Thank you!

[kyladiamond]

This is excellent advice. I was nervous until I hired a lawyer. They are suing for an $1100 debt that is so old. Original creditor was Providian who was bought out by WAMU who sold the debt to LVNV who sent the debt to Gemini Capital who has hired a lawyer to come after me.

I'm going to fight this because I doubt they have a paper trail. In the summons, it does say Gemini is an assignee of Providian Bank.