Being Sued For Credit Card Debt
Jul 8th, 2007 by Jennifer Lynn
A Continuation Of My Struggle Battling Alleged Credit Card Debt
The beginning of this story can be found at Broke-Ass Student Just Got A Whole Lot Broker with a bristled rebuttal at How To Fight Back Against Collection Agencies.
I squinted at the words scrawled across the pages through the dim light, entirely absorbed in my reading, when suddenly loud rasping at the door interrupted my thoughts. Sighing, I set the book aside and took a moment to wiggle into slippers before shuffling toward the door. The clock in the kitchen read 7:03. Was I expecting someone?
A heavier set woman stood outside my door, entirely bundled against the brisk evening chill. Suddenly she thrust fat mittened hands engulfing a clipboard toward me.
“Jennifer Lynn?” the tart voice came.
“Yes?” I shivered and stepped outside.
“Please sign here.”
I surrendering my signature and was presented with an unimpressive plain envelope. I had actually been expecting a mail delivery from Victoria’s Secret, but this small morsel didn’t represent the sleek package I had been anticipating.
“Err, what is this?”
“Jennifer Lynn, you’ve just been served a summons.”
“A what?!”
I gave an incredulous stare as she spun on thick heels and strutted away.
“Hey lady,” I bellowed at the Pillsbury Dough boy retreating back. “What the hell is this?”
“Read the summons. All the information is contained therein,” the curt reply sliced through the air. A car door closed, an engine started, and she was gone.
I immediately felt queasy – as well as utterly baffled and confused. What on earth was I being sued for? I numbly stepped inside and tore open the thin envelope. A neatly typed two-page document was nestled within. After a few minutes, I finished reading and dropped into a chair, letting out a long shaky exhale.
What the hell?
It was indeed a summons for the local city court, and I was being sued by a law firm on behalf of a federal bank for an alleged credit card debt of $5,000.
Since I had been served in person by the female process server, the document stated that I had ten days to file an appropriate answer to the summons with the city court. If I failed to oblige, I would lose by default.
Ironically, a day earlier I had received a letter in the mail from this law firm regarding an alleged debt with almost the same amount stated. I had frantically racked my brain for any outstanding debts I owed but came up blank. All my modest balances were faithfully paid off each month. And $5,000 sure as heck seemed like a pretty hefty amount to simply have forgotten about.
Earlier that afternoon I sent a validation letter disputing the alleged debt through certified mail with return receipt requested. And now a mere three hours after delivering my validation and dispute letter to the local post office, I’d been served a summons at my door.
What was going on here?
I didn’t rest well that night. Nightmares of court rooms and angry judges chased me into an uneasy sleep.
The next morning, I called the city court clerk to see if the summons was a legit document or not. She confirmed the docket number was indeed real. Next, I decided to research the name of the female server who was stamped on the summons to see if she was legit or not. And indeed she was.
Ok, my brain rationalized, so this was obviously serious business. And I was starting to develop a serious headache. The law firm had expended quite a bit of money to issue this summons. The document also stated that all legal fees accrued on their end would be included with the amount I was being sued for.
Thus, I concluded, the law firm seemed pretty confident they would be victorious in court. Well, they should be able to tell me what this alleged debt was all about then and I could finally get to the bottom of this whole ridiculous fiasco.
As mentioned previously in this post (Broke-Ass Student Just Got A Whole Lot Broker ), I called both the law firm and the credit card company to inquire about the alleged debt. No one I spoke to was able to provide me with any information or refer me to anyone who could help. I felt more confused and frustrated than ever.
As I debated what my next move should be, I spent sleepless nights researching anything I could uncover on the actual law firm suing me. And things began taking an intriguing twist.
This suing ’law firm’ had quite a notorious reputation for being a bottom feeder collection agency with an extremely unethical stigma attached to its services. In 2004, New York State residents filed a class action suit against them for engaging in rampant and abusive collection practices. The firm appeared numerous times on different consumer protection resources and sites, such as Ripoffreport.com.
Repeatedly, on each site and message board I visited, the warnings were similar; beware. bottom feeders. notorious for winning by default. unethical collection practices. extremely shady. barely on legal side of the law. watch your back.
So these bastards were mainly hoping to win by default, were they? Unfortunately for them, they had picked the wrong target. Although it was traumatizing to know I was being sued, I wasn’t prepared to give up without a fight. And the more research and information I compiled the more in control of the situation I felt.
I visited a few different attorneys in the area who offered free consultations. Finally I hired a consumer protection lawyer at a very reasonable rate to file my answer with the court in proper legalese. By that point, I had acquired so much knowledge through my personal research that my attorney seemed impressed and asked if I was studying to be a law student.
My attorney chuckled when, in a frenzy, I pointed out the ten day limit to file an answer (which loomed ominously closer).
“Oh boy,” he said as he glanced through the document. “I’ve dealt with this firm before. You give these guys way too much credit.”
The plaintiff, my attorney explained, was responsible for typing up the actual summons and not the courts. And the law firm suing lied about the time to legally file my answer. By law, it exceeded way more than the ten day limit they stated. Obviously these slimeballs hoped the defendant would feel pressured by such a limited time frame and nervously submit a half-assed answer, or feel frazzled and not bother to respond at all.
The receipt for my dispute and validation letter came back a few weeks later, signed in sloppy blue ink. I figured these guys hadn’t anticipated my immediately firing out a validation letter disputing the debt before they had a chance to serve me with the summons. At least now I had proof of disputing the debt in its entirety before the female process server had arrived at my door.
After filing my answer to the summons with the court, I sat back and tried to patiently wait for their next move. Two months later, it finally came. But it wasn’t quite the validation response with the information I expected.
Dear Mr. XXX:
In an effort to avoid the cost and uncertainties of litigation, we would like to discuss an amicable resolution and possible settlement with your client, Jennifer Lynn.
Sincerely,
Scumbag Law FirmCohen and Slamowitz
My lawyer presented the letter to me and thoughtfully tapped his fingers together.
“Well, it’s up to you,” he said slowly. “If you want to settle and throw $50 or $100 at these monkeys to get them off your back for good, it might cost less than if we go to court and push for a discovery process. During the discovery process, we’ll be forcing them to reveal any hard evidence they actually have in their arsenal against you.
However, if they can’t intimidate you into settling and have no evidence to support their claims, they may realize it’s hopeless and cut their losses.”
“But,” I protested, “I can’t settle. They still haven’t validated this alleged debt. I have no clue what it’s for.”
My lawyer raised his brow and nodded slowly.
“I’m just laying it all out for you.” He smiled faintly. “You’re obviously a bit smarter than the average bear. They thought they could use scare tactics for payment or a default judgment. And certainly didn’t expect a fight back. I’ll leave it up to your own discretion which direction you feel is best. The ball’s now in your court.”
“No,” I said firmly, taking a deep breath. I felt like a scrawny little David stepping up to the behemoth Goliath. “I do appreciate you laying out all my options. But they need to first provide documentation and validate this alleged debt. There won’t be a settlement.”
“Very well, I’ll notify them of our decision immediately.”
That was four months ago and I have not heard anything further from them (at least, not yet). I wish I had a more substantial update, but perhaps this little bit can help others in a similar frustrating situation.
One of the most valuable lessons I’ve learned through this nightmare is the criticalness of checking credit reports every year for discrepancies or errors. Again, I encourage everyone to go to Annual Credit Report.com for a free copy of their credit reports from all three credit bureaus (TransUnion, Equifax and Experian).
Stay tuned for further developments.
=^..^=
This is absurd, first they sue you then they want to settle once they discover you’re no schmuck. Take them all the way and take every penny from them Jennifer. Good luck and if I can help, let me know….though, I’m not sure how I could help, but i’ll def. try
It must have been a very nervous time for you. These people are awful!!! Luckily, you’ve done so much research and weren’t trapped by these rascals.
It’s great that you are so determined to fight back. Stand firm and good luck! I will look forward for the update. I wonder where did they take this $5000 figure from.
1. You did the right thing hiring counsel to prepare an answer. Many states require a “verified” answer (sworn) or you default. The technicalities can be baffling.
2. As officers of the court, the firm has a duty to behave in a certain manner. As collection lawyers, they will have a hard time explaining they do not know the correct time period for filing a response. Sending you a summons with an incorrect deadline was fraudulent and could be grounds for sanctions.
3. Once the matter is dismissed with prejudice, I would recommend filling a complaint with the appropriate bar association. If they persist in the matter without providing you the appropriate information, you might consider a motion for sanctions.
I tip my hat to you for standing up and fighting. You go girl.
I’m in the same exact boat that you are, same problem, same debt amount and same slomowitz. Here’s my story link:
http://wastrelshow.blogspot.com/2007/07/credit-blast-from-past_08.html
Read it and weep.
Want my advice, see if you can pay pennies on the dollar. You’re young. Move on.
They didn’t produce any documentation also so we moved for a summary dismissal. Amazingly, they forged documents and changed the dates. I’ll keep you posted on what happens to me.
Four months is a long time. Intgerst and penalties are piling up. Bust-a-move.
Awesome. Well done, and well written!
Brad offers some great advice. You stood up to these people, who appear to do this sort of thing regularly. If you do not continue your fight, they will keep doing this to other people.
Hi:
Any lawyer, whether a collection attorney or a personal injury or a divorce attorney, would prefer to resolve and settle a case at any point along the legal process whether suit has been filed or not. In fact, the courts generally frown upon any attorney who does not seek to attempt to settle a case before it reaches possible trial.
90-95 percent of all civil collection matters are won by the plaintiff’s attorney due to default as most defendant’s do not wish to fight a case especially if they know they owe the money. To state that the law firm is a bottom feeder because they win by default is to fail to recognize the realities of the legal system and how defendants NORMALLY react to the service of the summons.
In your case, you stated at the beginning you have no idea what the debt is for. Generally , these situations arise froma divorce proceeding where the ex spouse was supposed to pay the bill on which you both were jointly liable. Unfortunately such an order does relieve the exspouse who does not have to pay from liability to the creditor as that order does not relieve liability between the creditor and both of the spouses. Couple that with the fact that when a party is relieved from the responsibility to pay the bill, he or she fails to send the credit card company an updated address thus when the other spouse fails to pay as ordered by the divorce court, the victimized spouse never gets a notice until it is at the collection stage.
Therefore you are so correct in advising people to check their credit report annually or even more frequently. It is important.
Just dont shoot the messenger (the attorney) who is trying to collect a debt on behalf of his client. You quoted Bud Hibbs as saying that they were barely on the legal side of the law. That is saying theat the lawfirm IS on the legal side of the law.
As for the other issues regarding the answer date and validation that is something else. If you did not send the request for validation within 30 days of receiving your letter containing the 30 day validation procedure, the law firm is under no obligation to send you validation.
check your dates before youd ecide to stand on what you presume to be correct.
Abusive law firms should be punished but the mere fact that someone is a collection attorney is no excuse to call them bottom feeders etc. If all people paid their bills (assuming no error) there would be no need for collection agencies or attorneys.
I suggest you get competent legal advise and make your decision.
Chuck
Go get ‘em!
Carnival of Personal Finance #108…
Thanks for stopping by. If you’re new here, you may want to subscribe to my RSS feed and check out some popular articles. The CoPF is up at Broke Ass Student.
I’ll list some of my favorites from this Carnival sometime later.
Here are some links…
both scary and entertaining. thanks so much for the terrific writing, and for choosing my post for the carnival. id call a bottom feeder a bottom feeder!
Sounds to me like it’s a moral as well as a financial dilemma. If you settle, isn’t it a little bit like admitting guilt? And then again, defending yourself can prove to be expensive, time consuming and traumatic. A lot of people settle cases just to make the lawsuit go away, for practical reasons.
Personally, I think it might anger me so much to know that I am being sued for something I didn’t do (or for a debt I don’t owe) that I would try to fight it. But maybe that is an emotional reaction rather than a rational (and economical) one, I don’t know.
What I would do is get a lawyer to propound Discovery immediately and if it turns out that you’re not liable for that debt and they do have the wrong person, I would try to recover my attorneys fees and costs from the other side as well. I would not settle until I have an idea of what it is they think they have against me. Initial discovery (in California, at least) can be made on generic forms and should cost that much (Discovery is the “fact finding” part of a lawsuit)
There is a lot of information on the Internet, such as Nolo Press http://www.nolo.com/ for example, to help consumers understand the legal system. However, my advice would be to not try to mess with a lawsuit myself and most definitely hire an attorney. Even if you’ve done your homework and you think you undestand the process of the lawsuit 100%, when the other side sees a law firm’s name on the pleadings as opposed to just “in pro per” it makes a BIG difference.
I also wanted to add a couple of details about something I read in one of your previous posts; you mentioned something about having 10 days to respond to a Summons. In California, I believe you have 30 days to respond after personal service was effected (I saw respond, not “answer” because there are various pleadings you can file when you get sued, not just an answer/general denial).
Also, I believe I read in a previous post something about law firms obtaining defaults judgment by serving people at an expired address. I am pretty sure that in California, that kind of service would be considered invalid.
Good luck and thank you so much for taking the time to do this blog and let other people benefits from your experience. I intend to start reading through all your posts; this is a excellent blog!
Hang in there,
TF, California
PS. I like how your lawyer gave you both options (settle or fight) right in the beginning and let *you* make the decision.
Kudos in sticking up to them!
Very well done Jennifer! You show those slimeballs who they’re messing with
sounds like a scam, bigtime..
I would file a writ to have them state the origin of the debt.
If nobody complains or reports them they can send out summons and collect $100 all day every day as opposed to you paying the $250+ hour for attorney’s fees… sounds like a scam to me..
Well, not only did you get hit by a dirtbag debt collection attorney but now you will also get bit by another attorney trying to see if you won’t make life easy for him by letting him make a settlement for you and if you don’t you will get bit even worse paying him his fees and then you still might lose and have to pay the both of them.
What you really need to learn is the law and how to defend yourself in court. You should also learn that what they did is known as overshadowing just for starters. Then they supplied you with false and misleading information. That is two reasons to turn the tables on them and file a federal lawsuit against them for their violations of FDCPA. There will probably be more violations than you have already mentioned. The next thing you need to learn is that it is a whole lot better to be a plaintiff in a federal lawsuit than it is to be a defendant in any court.
If you file a federal lawsuit on them they have to hire another law firm to defend themselves and if you name the plaintiff as a co-defendant then they can’t represent their plaintiff in any court.
Filing federal lawsuits against debt collectors is no big deal and my students do it all the time and win consistantly without lawyers.
I have one student who has filed 40 federal lawsuits and won all but one. I have another who has filed 7 federal lawsuits and won all of them. I have many students who have also filed and won only one or two federal cases.
I’m not going to tell you that it is easy but neither is it all that difficult. Once you have done it a time or two you can actually prepare a case in about an hour or two.
Don’t let the lawyers screw you around. They will do it every time.
Learn how to do it yourself and win.
I hate credit card companies good job.
Wow- what an unexpected drama to appear out of nowhere! It sounds like an attempt at legal robbery with the high pressure tactics and their incorrect deadline for a response.
You mention to check your credit report- was this debt on your report, and how long had it been there?
Can someone give me an example of a swon denial form to file with my court in Texas…PLEASE …i have 9 more days to file. thanks
[...] (You can follow the rest of the story here, at Being Sued For Credit Card Debt.) [...]
[...] mentioned in your blog about how you were “sued for credit card debt”. I’ll point readers to this post, but could you briefly tell us about it? Have you heard back [...]
[...] mentioned in your blog about how you were “sued for credit card debt”. I’ll point readers to this post, but could you briefly tell us about it? Have you heard back [...]
[...] Being Sued For Credit Card Debt [...]
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Wow. Thanks for sharing your story. Pretty scary thing to happen. I’m in the middle of a situation where I had paid off this debt 2 years ago and still have collection agencies asking for money. I gave more money to a 2nd agency, to get them off my back. It turns out that the original company I had paid failed to give notice that my account was paid for. Now I’m out a good chunk of money and am still waiting for my credit to get cleared up. It’s frustrating dealing with these incompetent people..Sorry, just went on a rant.
Thanks very much for putting something like this together. I lost my job a year ago (for a year) and defualted on a credit card, it went to a couple of debt collectors, and now is at a law firm. I tried to contact the credit card to start payments when I got a job and some money together but it was at the collections at that point. In speaking with the collection agencey we almost settled, but before doing so it rolled to a law office. I spoke with them (before reading this helpful post.) and tried to negotiate, but they suddenly wanted $1000 more than the last agency… so no deal on my end.
I’m lost in all the info (and lack there of.)
Question 1) Is settleing debt terribly bad to your credit score assuming you already have poor credit?
I plan on sending them a validation letter as above, I plan on ignoring all knocks at my door I’m not expecting. I plan on no longer admiting the debt. Will this lawfirm sell off my debt again? I’m under the impression that since the credit card sent my debt of to collections can I simply ignore this/stall this stuff until the statue of limitations goes away?
Thanks for the posting!
Unfortunately your case isn’t that unusual. That’s why I created a web-site and products for people in the same boat who could not afford a lawyer. Sounds like you’re in good hands with your lawyer, but remember the Fair Debt Collection Practices Act, which makes unfair debt collection practices (like understating the time for response to a summons?) illegal. Maybe you could scare the collection off completely by filing a counterclaim.
Good luck
T
From Chuck: Abusive law firms should be punished but the mere fact that someone is a collection attorney is no excuse to call them bottom feeders etc. If all people paid their bills (assuming no error) there would be no need for collection agencies or attorneys.
No, they’re bottom feeders, plain and simple. Too many horror stories and fines levied against them in support of the bottom feeder description. An original creditor is one thing, a junk debt collector is quite another. And far too simplistic to opine that “….if all people paid their bills,” when the complexites and nuances of not paying or not able to pay are overwhelming. Time to check out the overall business models of the status quo that engage in “trick and trap.”
I ‘ been sued by credit card company and i sent a letter stating i deny the debt and show me proof that you have the right to sue me. i recieved a letter stating, make us an offer. i did’nt response, and now i recieved another letter from the court were the credit card company ask the judge not to dismiss the case, which would have been dismissed april the 2th, and now i been court order to mediation. which i will not settle. I do not owe this debt, what is troubling is they never sent anything to prove that i owe this debt, i live in texas
very impressive, and helpful! thank you!
I am being sued for credit card debt. I lost my job, my home everything and I am on a medical leave. I have no money. so what kind of letter do I send? does anybody have a sample on how to respond to debt you can’t pay?
It’s good to dispute it. 90% of all law is about posturing and intimidation.
Peggy: file for chapter 7 bankruptcy right now. This will result in a stay of any credit pursuits, including a lawsuit.
For all the people being called by creditors: there are laws that protect you. You can assert your right NOT to be called.
Falling into a bad financial situation is not a crime, it’s just that you inform your creditors about it and go for debt settlement. Many a times, some so-called law firms takes the advantage of your distress for making money, thus it’s nothing like being well-informed about your rights as a debtor.
Tell me about it. Ive been contacted by a company Wheycor Capital Group about a 1,000.00 debt i didn’t pay since 2008. They were frighteningly on point. who are these guys!!!uugghhh. when i checked online for guide lines according to fair debt practice acts, they came up clean. They did everything by the book. I went as far as demanding them to validate the debt. In a week and a half they produced copies of documents showing the debt was mine. these guys don’t play. what chances do i have in fighting a company that sticks to the book. i just received a letter from them letting me know that they intend on taking their collection efforts to the next level if i don’t decide to pay my debt. HHHHHHHEEEEEELLLLLLPPPPPP!!!!!!!!
silmore, this is a valid debt. pay it. you’re as bad as a slimeball lawyer.
thank you soooooooo much for your help! your story and experience is helping me get prepared. i have been served with a summons by a collection agency for a school loan. any advice or suggestions would be extremely helpful right about now lol. but again, you have really empowered me and i really appreciate it, thanx
If anyone here ever gets sued for their debt check out Jurisdictionary® here: http://tinyurl.com/7djg9ca It’s a self help course and was a huge help for me in defending myself Pro Se when I could not afford an attorney. If anything I would use this just to make sure I was aware of everything going on in court so I knew if my lawyer was no cheating me. There are a lot of crooked lawyers out there that know when you’re going to lose the case but won’t tell you until you do. Check it out they have lots of free resources on their website and a legal dictionary that you can use fro free! Jurisdictionary® here: http://tinyurl.com/7djg9ca . Best system out there!
Ugh, what a nightmare! Glad you’re giving them a fight.
hmmm.. Chuck sounds like a Bottom-Feeder defending the Bottom-Feeders! In the league of the Bernie Madoffs of Bottom Feeders!