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OR_redhead · Sep 17, 2008, 01:40 PM

I just recently returned to work after a vacation and learned (to my immense surprise) that there was someone from a law firm that had come around asking for me to serve papers. The only thing I can think of is that they are trying to collect on 2 credit card debts (about $2000 total) that were charged off when I was in college (5 years ago). I thought once credit cards are charged off that means the company has written it off as a loss. Is that true? Thanks in advance for the help.

JudyKayTee · Sep 17, 2008, 03:49 PM

Originally Posted by OR_redhead

I just recently returned to work after a vacation and learned (to my immense surprise) that there was someone from a law firm that had come around asking for me to serve papers. The only thing I can think of is that they are trying to collect on 2 credit card debts (about $2000 total) that were charged off when I was in college (5 years ago). I thought once credit cards are charged off that means the company has written it off as a loss. Is that true? Thanks in advance for the help.

It varies State to State - what State - ?

ballengerb1 · Sep 17, 2008, 04:10 PM

Charged off is a way for a company to use your bad dept to lower their taxable income. The debt lives on in most cases and collection agencies buy them for pennies on the dollar. Tell Judy where you live because the SOL of credit varies.

OR_redhead · Sep 17, 2008, 05:42 PM

Thanks for the replies; I live in Oregon.

ballengerb1 · Sep 17, 2008, 05:46 PM

Looks like its 6 years in you state. Statute of limitation for credit card debt, all 50 states They can still get you into court and seek a judgement to force you to pay.

Fr_Chuck · Sep 17, 2008, 05:49 PM

As noted "charged off" has nothing to do with your liability to repay, it is merely an accounting term used to show status of the debt as to taxable income to the company.

So if the SOL is 6 years, then they can sue up to that point.

ballengerb1 · Sep 17, 2008, 05:52 PM

Since it's a law firm tracking you down do not assume they are not a collection agency, many are both. Listen to what they tell you, ask them to give you everything in writing especially proof of dept. Come back here and tell us what they did. Do not admit or assume debt at this point, not just yet. Hey, got any of the old paperwork from 5 years ago, it may come in handy.

OR_redhead · Sep 18, 2008, 10:24 AM

Thanks for all of the help; I will let you know what they say when they come back. What was weird is that I have heard absolutely NOTHING for years, and then all of a sudden they came to where I work and told the receptionist that they were serving me with papers. Do I ask them for proof of debt when they give me the papers, or is that something I send to them in writing (certified mail)?

JudyKayTee · Sep 18, 2008, 10:34 AM

Originally Posted by OR_redhead

Thanks for all of the help; I will let you know what they say when they come back. What was wierd is that I have heard absolutely NOTHING for years, and then all of a sudden they came to where I work and told the receptionist that they were serving me with papers. Do I ask them for proof of debt when they give me the papers, or is that something I send to them in writing (certified mail)?

This is just a side issue but I operate a process service company and I am increasingly amazed by the number of papers I am asked to serve on the person at work - I don't know if it's an attempt to embarrass the person, sort of a guarantee they'll be there, what the issue is. The cost of service is the same, no matter how many attempts we make.

On some level I question why this is allowable. I can see it as a last resort...

Anyway, a totally side issue but this is posted fairly frequently.

OR_redhead · Oct 1, 2008, 09:30 AM

So they finally came back, and the summons is for the one credit card that I had when I was in college. I plan to send a letter back to the law firm asking for validation of the debt. In the meantime, do I contact the court and file for a hearing? The summons says I have 30 days, and I don't want to get a judgement against me. Thanks!

ballengerb1 · Oct 1, 2008, 10:21 AM

Tell us what the summons says, 30 days to do what? Who issued the summons?

OR_redhead · Oct 1, 2008, 11:46 AM

The summons says 30 days, and I would have to look at it again (it is at home) to see whether it was the court that issued the summons. I saw mention of the court on the first page, and therefore assumed that it was the court that had issued it. Can the law firm issue a summons?

OR_redhead · Oct 1, 2008, 11:48 AM

Whoops, I just realized I didn't totally answer your question. It says I have 30 days to file with the court to answer the summons.

ballengerb1 · Oct 1, 2008, 02:15 PM

Just read the document very carefully especially who issued it. Some less than friendly collection outfits can have their own documents that appear to be a summons. JudyKayTee might drop by and give us her read.

OR_redhead · Oct 1, 2008, 09:52 PM

The summons appears to be issued by the Circuit Court of the State of Oregon. It says: "You must appear in this case or the other side will automatically win. To appear you must file with the court a legal paper called a motion or answer. The motion or answer must be given to the court clerk or administrator within 30 days along with the required filing fee. It must be in proper form and have proof of service on the plaintiff's attorney or, if the plaintiff does not have and attorney, proof of service upon the plaintiff." So, my question is, do I file this motion now while I am waiting for validation? And what am I supposed to say in the motion? It sounds like maybe I should talk to a lawyer, but I really can't afford one!

JudyKayTee · Oct 2, 2008, 07:15 AM

Originally Posted by OR_redhead

The summons appears to be issued by the Circuit Court of the State of Oregon. It says: "You must appear in this case or the other side will automatically win. To appear you must file with the court a legal paper called a motion or answer. The motion or answer must be given to the court clerk or administrator within 30 days along with the required filing fee. It must be in proper form and have proof of service on the plaintiff's attorney or, if the plaintiff does not have and attorney, proof of service upon the plaintiff." So, my question is, do I file this motion now while I am waiting for validation? And what am I supposed to say in the motion? It sounds like maybe I should talk to a lawyer, but I really can't afford one!

The answer would be your defense to the debt - out of Statute, already paid in full (the fact that it was written off does not close the account and someone has answered that).

The Motion would be to dismiss, request more info, whatever other relief you are seeking.

The State of Oregon is a stickler when it comes to legal papers - other States will accept letters, Oregon will not.

You must be very careful to remain within the Court deadlines - in this case, your response (whatever it is) must be in the hands of the Clerk and must be served (with proof of service) upon the Plaintiff within 30 days.

I normally say handle this yourself, write a letter, but, as I've already stated, Oregon is tough about legal format and I'm afraid any self help will be thrown out as insufficient. If you have no defense you might be better off either paying this or allowing it to go to Judgment instead of paying an Attorney and then losing the lawsuit.

One other question - are the papers stamped by the Court? A law firm in Oregon (and this has been posted before) was serving very legal-appearing documents which had no Court stamp and at the bottom had a phrase about "information obtained will assist us in collecting this debt," indicating the papers were NOT from the Court but were from the Attorney.

(Sorry to answer a question with a question.)

ScottGem · Oct 2, 2008, 07:29 AM

This appears to be a common misconception. A Chargeoff is simply an accounting maneuver. It has absolutely NOTHING to do with your obligation to pay.

So you now have two choices. Since you seem to acknowledge that the debt is valid, you can try to fight it hoping they don't have the documents to verify the debt or you can try to negotiate payment.

More than likely, the debt has been purchased from the original creditor for pennies on the dollar so you can probably negotiate a settlement amount, especially if you can play it in a lump sum.

You also mention there were 2 cards. I would look at settling the other as well before they file suit.