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mulatto · Sep 5, 2007, 09:48 PM

Hello,

I had a $1,500 credit card that I had in 1994 and I paid on it regularly (min payments). In 2001, due to some fiancial difficulties we had to pay one or the other.. our credit cards or mortgage. We went with mortgage. Supposedly our account was written off. After all this time I heard nothing from this credit card company, all the sudden, I'm being served papers, that I'm being sued and now a default judgement has been filed against me in the amount of $3,600 + court costs. Can they do that? If so, how do I keep this from hitting my credit?

SabbzR · Sep 6, 2007, 05:20 AM

It seems they can sue you, however - you have the right to appeal. Because the company never contacted you with regards to payment of the card, you presumed it to be written off and as a result, left it.

Go to your lawyer and speak to him/her about the correct course of action.

You failed your agreement with the company by not paying, but they failed by not reminding you of payments. Have you received any bills from them? Credit card statements etc?

If you were in South Africa, I'd say sorry, but its already affected (effected? ) your credit worthiness. As it is, its not lol so, contact someone that can check your credit worthiness, in south africa we have people that will do everything for you - for a nominal fee.

The courts will most likely ask you to pay up, or force you to give up stuff (that is under your name) to cover the costs.

But I would immediately contact my lawyer and get him/her to start the necessary procedure, and tell him/her you want to appeal because you feel the company wasn't holding up their end of the agreement by not keeping you informed.

Regards,
Sebastien

ScottGem · Sep 6, 2007, 05:52 AM

Of course they can do it. You agreed to repay this money and you reneged on that agreement. That's grounds for suing you.

If the debt was written off, that has NO bearing on your requirement to pay it. A writeoff is simply a tax maneuver on the part of the creditor. What has probably happened, is the debt was sold and the current owner is pursuing it.

Now, unless you you respond to the suit within the time frame listed in the summons, they will obtain a default judgement against you. This judgement will then permit them to garnish your salary or attach your bank account.

The only way to prevent it hitting your credit is to reach a settlement with them.

ScottGem · Sep 6, 2007, 05:55 AM

Originally Posted by SabbzR

it seems they can sue you, however - you have the right to appeal. because the company never contacted you with regards to payment of the card, you presumed it to be written off and as a result, left it.

I'm not sure about South Africa, but in the US that is not grounds for appeal. A creditor is not required to send statements to the debtor. The debtor signs a contract and is then aware they have to make payments on the debt. Statements are merely a courtesy.

Also, a write off has nothing to do with the obligation to repay.

mulatto · Sep 8, 2007, 08:32 AM

Originally Posted by mulatto

Hello,

I had a $1,500 credit card that I had in 1994 and I paid on it regularly (min payments). In 2001, due to some fiancial difficulties we had to pay one or the other..our credit cards or mortgage. We went with mortgage. Supposedly our account was written off. After all this time I heard nothing from this credit card company, all the sudden, I'm being served papers, that I'm being sued and now a default judgement has been filed against me in the amount of $3,600 + court costs. Can they do that? If so, how do I keep this from hitting my credit?

ScottGem,

I plan on putting in a Motion to Vacate the Judgement on the grounds that I was not given due process to defend myself. I am hopping mad that they are trying to get over, with regards to collecting money without working with me first. Whoever this collection agency is that purchase my debt NEVER ONCE tried to contact me to work out payment arragements. I have had the same phone number for about 8 years, lived at the same address for 8 years. Once my account was written off and sold, I NEVER received anything from anyone, not even a phone call trying to demand or work out payment arrangements. In addition, I NEVER receive a notice that I was being sued.. The only thing I received was a Default Judgement. How could I fight this if I never even received the summons to appear in court ? I have a finicial guy that is helping my husband and I clear our debt. He is sending out paperwork to these individuals demanding proof of debt. I will deny until they can prove. He has cleared a lot of our debt as the credit card companies sell so many accounts they lose this stuff (at least that is what I am hoping). I will go Monday morning to court to file this motion. I cannot have this hit my credit as we are closing on a new house in October. I am going to try to prolong this until we get into our house. If they prove I owe the money. I will try to work out payments with them or I will move everything into a different account, not under my name.

You seem to know your stuff. Does this sound like the best course of action and can you think of anything else I can use to hold these people off?

ScottGem · Sep 8, 2007, 08:43 AM

From the sounds of what you posted initially, you don't have a judgement to vacate. It sounds like what they sent you was a summons to respond and if you don't respond, then a default judgement will be issued. This is your notice of being sued. So you are getting due process.

You need to read what you were sent carefully to make sure what it is so you don't file the wrong thing.