Credit Card Judgement Against Me - Accruing Interest - What are my rights?

in_forsaken_hands · Dec 11, 2007, 09:53 AM

I have just received a notice from my local court that an old credit card account i have is suing me for payment. The account is currently with its' third collection agency. The second agency harrassed me at work until i did my research and sent them a "cease and desist" letter. I have spoken to the collection agency the account is currently with to see if they are willing to "settle". They are not. He will only accept a minimum of $150.00 a month on the entire balance beginning early January. I told him I can only afford to pay $100.00 a month beginning late January. The creditor is not willing to bend, but this is all I can afford to pay them. I am in no way refusing payment at all. Also, this account is continuously accruing interest!!! The collection agency said it will continue to accrue. How can this be????? Every time I talk to this guy, my balance has risen by at least $100.00 or more!!!!! If they don't freeze the account, how will I ever get this paid off???? Can they do this? I'm really concerned and need to know what my rights are and what they are allowed to do. I have never had a judgement against me before (I did file bankruptcy in 2001 - I obtained the credit card I'm speaking of after my bankruptcy) and also need to know if I have any options, and what those options might be. Any help any one can give me would be GREATLY appreciated. THANK YOU!!!!!

in_forsaken_hands · Dec 12, 2007, 05:58 PM

Quote:

Originally Posted by ScottGem

This is a NEGOTIATION. You have the power to suggest or offer any settlement you want. They have the power to reject any offer you make just as you can reject any offer they make.

If you do agree on something, get it in writing!!!!!!!!!!!

Once they see you are fighting the judgement, they may be more amenable to a settlement. Send your response to the courts and send a copy to the plaintiff with a request for verification of the debt.

If they get a judgement they will be less amenable to a settlement since they then have the power to garnish salalry or attach assets.

What do you mean by "fighting the judgement"? I'm agreeing that I owe them the money, I just think it's unfair that they haven't yet frozen the balance. But maybe I misunderstood what you meant. At what point in the negotiating process is the court case dropped? What happens with the courts once they receive my letter? What would be the next step?

in_forsaken_hands · Dec 13, 2007, 08:57 AM

Quote:

Originally Posted by ScottGem

By answering the summons with your Intent to Defend you are figting the judgement. What often happens in cases where a debt has been purchased is that the purchaser doesn't get sufficient documentation. So the plaintiff is often afraid to go to court, they are looking for a default judgement where the defendant just ignores the summons. So once you show you aren't going to just let them get a judgement, they may be more amenable to settling.

The court case is dropped ONLY when a settlement is fully agreed to.

Your next step here is to make a counter offer and see if they accept. At the same time that you submit your Intent to Defend.

Well, i'm mailing my letter tomorrow. I am composing it today. I also plan to call the creditor today with a counter offer. I'll let you know how it goes. I really appreciate all of your input!!!!