Check out some similar questions!

pa-veryscared · Mar 29, 2007, 11:25 AM

I received a Civil Action Hearing Notice today. It is for a loan. I can not afford to pay this in full. Can they accept payments? Can they take my car from me? Because I was told that they can take my car from me. I am very scared that they will take my car for payment it is the only transportation that I have for myself and my children.. Also I recently lost my job. I am willing to pay this in full but I am not able to do this all at once..

ANY HELP OR ANSWERS ARE GREATLY APPRECIATED:confused: :confused: :confused:

I live in Pennsylvania

excon · Mar 29, 2007, 03:51 PM

Hello pa:

Don't be scared. They can't kill you for debts...

Here's the deal, though. If they get a judgment, and they will at the end of the hearing, it's going to cost you a whole lot more than it will if you pay it now. Plus, if you can get some CASH, I'll bet you can settle for a whole lot less than they're asking for.

excon

pa-veryscared · Mar 29, 2007, 05:40 PM

Thanks I'm going to try I was also told that they can put me into jail. But I'm still scared

pa-veryscared · Mar 29, 2007, 06:45 PM

After the hearing would I have to pay the whole amount in a certain amount of time a friend told me that I would have to pay it back within like 30 days and that is going to be impossible

excon · Mar 29, 2007, 06:55 PM

Hello again, pa:

Like I said, you should try to pay it BEFORE it gets to court. I don't think you quite understand what court is about. If they get a judgment, and they will, they're DONE negotiating with you. The judgment is a free pass to your bank accounts and your paycheck, and that's where they will go. They don't need your permission. They don't need to talk to you about it. And, they don't need to wait 10 seconds until they make the grab for the cash.

If you don't have the entire amount in your account, that's OK with them. They'll just sit there and take everything you deposit including ALL the direct deposits. If your paycheck won't cover the judgment either, that's OK with them. They'll just sit there are take every pay check you earn until they've got their money. Thinking about opening up another bank account?? They'll find that one too.

Remember my advice above. AFTER they get a judgment, there will be court costs, interest, and attorney fees added on. I say again, IF you can get some cash together BEFORE the hearing, that would be a VERY good thing.

excon

pa-veryscared · Mar 29, 2007, 07:34 PM

I have a little but it is not nearly enough and they probalby will not be willing to settle with me since they filed this in court at least this is my guess. The papers I got from the court says I can pay the FULL amount to them before the court date. But I can't come up with the full amount

excon · Mar 29, 2007, 08:01 PM

Hello again, pa:

Ok, whatever you come up with, call them and offer it. They'll negotiate - NOW, but not after they get their judgment.

excon

pa-veryscared · Mar 29, 2007, 08:43 PM

Thank You for all of your help I am going to call them first thing Monday and I will let you know how I made out.

Thanks again ever so much

ScottGem · Mar 30, 2007, 06:33 AM

Who told you you can go to jail over this? Debtor's prison hasn't existed since the 19th century. So if someone lied to you about that, think what else they lied about.

You didn't say what this loan was for. If its an unsecured loan, then the likelihood is they won't go after physcial assets like your car or home. But, if they obtain a judgement, they will go after cash assets like bank accounts and salary.

However, if the loan is a car loan or secured by some asset, they can take that asset back. Then go after you for the difference between what you owe on the loan and what they sell the asset for.

But my question is; where have you been all this time. Haven't you tried negotiating before. Why did it take suing you to get you off the stick. Did you expect them to forget the money they loaned you just because you stopped paying?

pa-veryscared · Mar 30, 2007, 12:44 PM

The loan was one were they send a check to you in the mail and just take it to your bank to cash it I never applied for the loan is that unsecure? Can they sue me if the statute of limitations has run out? I didn't even know about the statute of limitations till doing some research on the internet? I think that this is a promissary note but I am not sure? My child was sick and I had to quit my job and the debt collector knew this..

ScottGem · Mar 30, 2007, 01:04 PM

Well its still hard to tell. Your cashing of that check constituted an agreement to pay them. Along with the check was a contract. Your accepting the check was effectively signing that contract. Without knowing what the contract says I can't tell if its unsecured or not. Most likely, though, it was.

excon · Mar 30, 2007, 02:33 PM

Hello pa:

Tell me more about the check. If they sent it you UNSOLISITED, then you don't have to pay it back. Tell me EVERYTHING surrounding this transaction, including how the two of your FIRST came into contact with each other.

excon

pa-veryscared · Mar 30, 2007, 03:15 PM

In late 90's I got a car loan from them paid that off then in 2003 this check just shows up in my mailbox one day from them it said take this to your bank and the money is yours that was what happened I took it to the bank and all I needed was 2 proofs of residency the check said that right on it I had to wait 3 days for the check to clear and it cleared. What is unsolisited? I was suppose to make monthly payments it stated that in one part of a the paper that came with it but I no longer have this (should have kept it) a friend told me that this might be a promissary note under the STATUTE OF LIMITATIONS and they may have run out of time to sue me.

excon · Mar 30, 2007, 04:12 PM

Originally Posted by pa-veryscared

then in 2003 this check just shows up in my mailbox one day from them it said take this to your bank and the money is yours

Hello again, pa:

I don't think you have to pay the money back. Years ago, lots of merchandisers would send their products to unsuspecting customers and then bill them. There were taken to court. It was ruled that unsolicited merchandise doesn't have to be paid for. I don't know if unsolicited loans would qualify under that same ruling, but I would surly present that as my defense.

The worst that can happen is that you'll lose. Big deal. You were going to lose when you started this thread. Now, I think you've got a GREAT chance at beating these lowlifes.

excon

ScottGem · Mar 30, 2007, 04:22 PM

I disagree with excon here. Yes, if someone sends you a toaster and then tells you either return it or pay for it, that has been made illegal. But if someone sends you a check and says, if you cash this, you are obligated to pay it back, then you have accepted the conditions. It is no hardship to destroy the check, while it is to return physical merchandise.

Yes, you agreed to a promissory note. And you do owe the money. However, whether they can sue you for it depends on the Statue of Limitations. And whether they can prove you accepted the terms, (not hard for them to do).

excon · Mar 30, 2007, 04:27 PM

Hello again, pa:

In 1997 the following house and senate bill were introduced. I just can't find out if they were made into law. I'll bet they were:

H.R. 2053, the Unsolicited Loan Consumer Protection Act, introduced by Representatives Hinchey and Gonzalez, prohibits the unsolicited mailing of loan checks or other negotiable instruments. The bill also provides that if a check or other negotiable instrument is sent unsolicited, a consumer would not be liable for the debt unless the creditor could prove that the consumer received and negotiated the instrument. And whether the intended recipient received it, the creditor could not report any liability resulting from the unsolicited instrument to a consumer reporting agency.

(Senate bill below)

SEC. 139A. SOLICITATIONS FOR CONSUMER LOANS.
'(a) IN GENERAL- No consumer credit which is otherwise subject to this title may be extended by any creditor through the use of a check or other negotiable instrument which has been sent by the creditor to the consumer in connection with a solicitation by the creditor for such extension of credit, unless the consumer has submitted an application for, or otherwise requested, such extension of credit before receiving the check or instrument.
`(b) Consumer Not Liable for Any Unsolicited Check Unless the Consumer Actually Receives and Negotiates Such Check-

excon

PS> (edited) Is a "negotiated" check one that is cashed? Or is it one that is applied for?

ScottGem · Mar 30, 2007, 04:37 PM

Originally Posted by excon

a consumer would not be liable for the debt unless the creditor could prove that the consumer received and negotiated the instrument.

There you go. What they are saying is just the sending of the check does not constitute a loan. The check has to be cashed by the intended recipient. That's what apparently happened here.

pa-veryscared · Mar 30, 2007, 04:38 PM

It wasn't applied for, but if the statuate of limitations is up then can they still sue me? I know that I have to pay this back and I will. When I can. Do you think that this is considered a promisary note or a written contract. If it is considered a promisary note then the statuate of limitations has expired.. how can I found out which one it is?

ScottGem · Mar 30, 2007, 05:34 PM

It is most likely considered a promissary note. Whether it was applied for or not, doesn't matter. You agreed to the loan by cashing the check.

The Statue of Limitations starts with the last activity on the account. So, if you don't want to start the clock over again, don't make any payments.

pa-veryscared · Mar 30, 2007, 06:38 PM

Originally Posted by ScottGem

It is most likely considered a promissary note. Whether it was applied for or not, doesn't matter. You agreed to the loan by cashing the check.

The Statue of Limitations starts with the last activity on the account. So, if you don't want to start the clock over again, don't make any payments.

My credit report will show last activity on my account right? I was told it would be wise to take a copy of my credit report with me. Does the Statue of Limitations start over if a new creditor takes over the account the one that is sueing me is a new creditor?