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What's the correct way to answer a complaint to a summons from collection agency?
I received a summons by a deputy sheriff regarding a debt from Capital One. Capital One first gave it to a collection co. called NCO Financial Services. Then from there, it went to the Law Offices of Pollack & Rosen and finally it's in the hands of Trauner, Cohen & Thomas who are the ones bringing the action against me. The paper states that I'm summoned and required to files with the Clerk of the court an answer to the complaint and I've been given 30 days to do so. My question is, "How do I answer a complaint?" I don't have the money to pay it, obviously, since the original debt has changed hands 3 times. I do own a home and if I don't answer and they get a default judgment I assume the judge can put a lien against my home which originally I thought unsecured debts as credit cards could not do since I didn't sign anything giving them the right to put a lien on my home if it weren't paid. Specifically, how do I answer this? What's the correct way? My guess after reading the forums is they won't have the information needed to verify whether I owe the money or not (particularly since it's been passed on to so many collectors) but I don't want them to get a default judgment.
Also, what gripes me, is that the female deputy who delivered the summons wrote on it, " Tacked on door due to subject not wanting to come to the door. Spoke w/her on phone she advised I had the wrong number # got number from house memo states Bonnie (last name) phone number (and my number)." This is partial lies and assumptions on her part and I want to ask how legal is this. First, I did come to the door. It took me a while as I was upstairs sleeping because my daughter had an emergency c section delivery a premature baby and I'd been spending most of my time at the hospital. The deputy's phone call woke me but she asked for "Bonnie (married name)" which I dropped during my divorce so when people call asking for that person I say I'm not her because I'm not." The memo she says she got the number and correct name from is a note I have pasted on my door for realtors not to come in unless they call my agent or me first as I've had them simply walk in with no notice surprising me in stages of undress. So having been awoken, I heard the doorbell at that point and did come to the door and accept the summons (which she did not have me sign as having received it). I'm angered that she says on the summons that I didn't come to the door and that she assumed that I was home and didn't WANT to come to the door. There was nothing to lead her to believe I was even home. My car was in the garage behind and under the house, there was no tv on as I was asleep, the shades were drawn because I was asleep. So it angered me that she wrote this crap on the summons that wasn't true. And if they hand it to you in person, as she did, is she not required to get me to sign it? And is it legal for her to write a lie on the summons?
Ok, The first thing you need to do is simply file an Intent to Defend. You don't have to give grounds at this point. The purpose of the Intent to Defend is to get a court hearing on the suit. Otherwise they get a Default Judgement.
Second, most states exempt your personal residence from attachment over unsecured debt. Even if they can file a lien, a line just states they have to be paid before you can sell the property. They can't force a sale.
After you file the Intent to Defend you ask the creditor to furnish proof of the debt and their ability to collect on it. When a debt has changed hands so many times, its possible they will not be able to produce such documentation.
Another option would be to offer a settlement for $.50 on the dollar. When its changed hands so many time, they paid pennies on the dollar for it.
As for the delivery, you really can't prove she lied and if a signature was required, she wouldn't have been able to just leave it.
Thank you so much for your answer! I want to be sure I do it absolutely correctly, so at the risk of appearing stupid, I just type a letter that states, "My intent is to defend against this lawsuit" sign it and date it and attach a copy of the summons to my letter? Do I ask the creditor to furnish proof of the debt and their ability to collect on it prior to the date in court or in court? And what percentage of these collectors actually show up in court?
The offer to pay $.50 on the dollar when they paid pennies for the debt sounds attractive, but when do I do that? And how do I know what they paid for the debt, do they have to show that amount to the court? Do I gamble and hope they don't have the documentation or don't show up?
PS. The state I live in is GA and my house is already on the market (not moving at ALL) and I want to sell it so badly and don't want a lien against it that would make it seem problematic for a buyer. I want a smooth sale with no problems attached.
The offer to pay $.50 on the dollar when they paid pennies for the debt sounds attractive, but when do I do that? And how do I know what they paid for the debt, do they have to show that amount to the court? Do I gamble and hope they don't have the documentation or don't show up?
Hello Bonnie:
No, I would NOT gamble. If you want to settle it, do it NOW. You can do it on the phone, but don't send money untill you have your arrangements in writing.
How do I know how much they paid (it's changed hands 3 times after the original credit card)? I assume each time it changed hands they paid less and less for it. I want to be sure I can pay it (which I have hardly any money at this point) so what proof do I have or do they have to show as to what they actually paid for the debt?
Do I call this third party collector and ask them what they paid for the debt? Do I want to contact them directly at all? What benefit does the Consumer Credit Counseling Services offer? Do they get the amounts these third hand collectors purchased debts for and help you offer the $.50 on the dollar? And once this is done, is there a way to ask them to wait for their payment in full once my house has sold? I have no avenue to pay NOW.
What they paid is immaterial and really not your business. Nor is it information you are entitled to. The real questions are a) are you sure the debt is valid, meaning its a debt you signed for and b) how old is the debt and when was the last activity on it.
If you acknowledge the debt and its fairly recent and you can afford a settlement, then I would handle it like this:
1) Send a copy of the summons to the court with a letter stating that you intend to defend against this suit and that you request a that a court hearing be scheduled.
2) Send a copy of what you send to the court to the creditor. In your cover letter to the creditor, request that they provide you with documentation of the debt and their roght to collect on it.
3) Also in that letter, state that if they can prove the validity of the debt, you might be willing negotiate a settlement.
The debt is valid...the last activity (last payment I made on acct. was over 2 years ago) and as I mentioned before, it's changed hands 3 times (not including original credit card).
I can't afford a settlement until my house sells. I'm completely broke. When my house sells then I do intend to settle with these people and others. But I can't now.
Do I do everything as you suggest with the exception of saying I might be willing to negotiate a settlement? Or is it reasonable for me to do all you suggest and say I might be willing to negotiate a settlement but they won't receive any monies until my house sells?
And when I say I might be willing to negotiate a settlement that's not promising that I WILL, right?
When you say sit back and wait for them to respond, it's possible they may not respond at all
since it's changed hands 3 times and they may not have the documentation that I ask for in my letter. Is this a reasonable thought?
I hope you respond again, you give such good advice. I wasn't on line yesterday so just read your message this evening. Thank you so much for your trouble.
Bonnie
PS I'm not a bum and not the sort who doesn't pay their bills. It's a terrible situation I find myself in and not one that's ever happened to me before. I'm desperately trying to sell my house so I can climb out of this nightmare.
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