I have an outstanding debt with Capital One. The original amount was $2500, but now with interest and fees I owe $3500. Capital One has charged off the account and it was purchased by a local law firm. The law firm has contacted me several times asking me to pay more than I could afford, so in an attempt to get them to lay off I sent them a $25 check last Friday to which they responded with a receipt and letter asking me to have a payment in their office every 30 days. Today, which is one week later I received a summons for the full amount, court costs, attorney's fees and 6% interest of the pre and post-judgment.
Now that I have done some reading I believe that I just screwed myself by sending a payment to them in the first place. I'm not sure what to do from here. Everything I have read says to deny the debt until they can prove it is valid, but since I just made a payment is there any way to do that?
Just looking for some advice, I know absolutely nothing about law suits and don't have the extra money for a lawyer.

Thanks.

Yes, you made a mistake by making payment. So closing that barn door now that the horse has fled isn't going to help.

The good news is that they accepted your payment and offered a payment schedule. The reason they proceeded with a suit is three fold. First, you validated the debt for them and second, you restarted the SOL and finally, then want to have the judgement in place for when you default.

So answer the summons with a letter stating that you have agreed on a payment schedule. That may or may not stop a judgement going through, but it should stop them from executing the judgement as long as you pay as agreed.

Quote:

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So answer the summons with a letter stating that you have agreed on a payment schedule.

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Is there a specific format and/or information I should use in this letter?
The summons states:
"...unless you file a pleading and thereafter appear and present you defense.
Your pleading or answer must meet the following requirements:
A. It must be in writing, and otherwise comply with the Arkansas Rules of Civil Procedure.
B. It must be filed in the Court Clerk's office within 20 days from the day that you were served this summons..."

Would a letter that just stated that I agreed to the payment plan of having a payment in their office every 30 days be sufficient?

First do you really owe the debt, if you do, there is really no way to fight a valid debt.

Why have you not been paying something all along ?

At this point, unless you have it in writing, that they have accepted a payment plan, they can sue you. On the phone they lie and never admit to what they said.

Contact the Court clerk's office and ask if there is any specific format you need to use. Generally a letter stating that you have entered into a agreement on a payhment schedule should be sufficient. Enclose a copy of the letter.