Help! Sued by HSBC, law firm won't provide validation

[CBuff]

I'm so confused and upset right now.  I just spoke with someone from "Allied Investigators" or something like that, who informed me I am being sued by HSBC for a delinquent account opened in 2000.  They do not know or will not tell me the original creditor nor provide any debt validation, stating they are NOT a collections agency but a law firm representing HSBC.  They are suing me for fraud and malicious intent to defraud.

I'm confused because they stated they are serving me with a subpoena, but will not provide any info as to the court case or jurisdiction where the case is.   Furthermore, the person I spoke with stated my only opportunity to review documents and find out the original retailer, etc. will be when I appear at court.  He said he will have me served by subpoena which will state the date/time of the court appearance.

OR my other option is to settle out of court. Of course, if I actually owe this debt I would pay it but I don't want to pay if I don't owe it.  They said HSBC tried to contact me in 2008. 

What's the best way to handle this?!?!  Any help appreciated

[guiness56]

This sounds very similar to another incident from another poster.

Sounds like a CA who is trying to get you to pay using the most violations they can come up with.  I highly doubt it is an attorney. If they are, they are also in violation.   I googled Allied Investigators and got zip.

Did you get a phone call?  Do you have the number? 

If they were legit, they would tell you everything you asked.  And they are stupid if they think you bought it. 

Do not give them anything, no information, no money.  Do not answer if they call again.

[CBuff]

Thanks for your response, guiness.  I did a little more research online and found their name is Allied Legal Services.  I googled the phone number they left: 980-939-0922 and found a wealth of information about this company and it's attempts to scam people. 

I agree, that if they were a legit company that they would be able to provide me with debt validation, something they claimed they "did not have to do" because they were a law firm, not a collection agency. 

I called the FTC and filed a claim who advised me to contacting the California Attorney General's Office as well, which I did.  The AG's website directed me to my local DA's office.  I contacted the Consumer Affairs division of the DA's office who told me it sounded like a scam.

[guiness56]

A legit process server is not going to tell you they are coming.  They just show up. 

A legit attorney is going to provide debt validation.

A legit CA, even the worst, know when to stop.

This sounds like a scam. 

[Anonymous]

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@CBuff wrote:

I'm so confused and upset right now.  I just spoke with someone from "Allied Investigators" or something like that, who informed me I am being sued by HSBC for a delinquent account opened in 2000.  They do not know or will not tell me the original creditor nor provide any debt validation, stating they are NOT a collections agency but a law firm representing HSBC.  They are suing me for fraud and malicious intent to defraud.

I'm confused because they stated they are serving me with a subpoena, but will not provide any info as to the court case or jurisdiction where the case is.   Furthermore, the person I spoke with stated my only opportunity to review documents and find out the original retailer, etc. will be when I appear at court.  He said he will have me served by subpoena which will state the date/time of the court appearance.

OR my other option is to settle out of court. Of course, if I actually owe this debt I would pay it but I don't want to pay if I don't owe it.  They said HSBC tried to contact me in 2008. 

What's the best way to handle this?!?!  Any help appreciated

---

Guiness56 has given you excellent advice.  No two ways about it -- it's a scam.

First of all, if they were to sue you over a debt from 2000*, it would be far outside the statute of limitations.  Secondly, they have violated the FDCPA is so many ways that they probably owe YOU much more than what they claim you owe them.

* When did the account go delinquent?  The SOL in CA for credit card debt is 4 years.

Aside from reporting them to the proper authorities, I see two possibilities:

#1.  Send them a Cease & Desist letter (otherwise known as a FOAD letter); or

#2.  Bait the scumbags.  Act like you are concerned and taking their claims seriously.  Get an address, names ... whatever information you can to determine who and where they are.  Then sue the pieces of manure for multiple violations of the FDCPA -- specifically:

a.  Falsely implying they are not debt collectors;

b.  Threatening action they are not able to take;

c.  Threatening criminal action;

d.  Failure to DV or cease collection activities.

#2 is my personal favorite. 

[Anonymous]

  I say relax, sounds like a scam! This stuff is truly rampant today!

Oh, gosh I just read  all the rest, you got them! Yes!! Good for you, the no good stinkpots!!! Congratulations!!!!!!!

[kittygal]

There has been a lot of documentation regarding CA's using this and similar techniques in hopes of scaring people into paying alleged debts (that may not even be theirs!)  They are in direct violation, but have had success in getting some people to pay and the risk of anyone taking legal action against them is low.

If they make money, they will continue to abuse the system to the detriment of all.

If you had an account with HSBC as stated by this "law firm", you would most certainly have had some prior notification.  HSBC is well known for attempting to collect money owed.  I doubt seriously that this is a true debt and you should file complaints with the FTC, the BBB and your state AG.

Above all, don't let yourself be intimidated by these folks --- any legitimate court case would have a paper trail and I doubt this "law firm" can provide any documents.

Just monitor your credit reports and see if they try and report this alleged debt.  My personal opinion --- not likely!

I see that I am late for the party!  Oh well, at least we are all in agreement.!

[CBuff]

Thank you EVERYONE for all of your input! 

I was trying to think of whether or not this could in fact be a valid debt that I owe (outside of the fact that it's clearly outside the statute of limitations) and figured something out.  I applied for an HSBC card as well as a Best Buy card through HSBC in 2008, thus if I did actually have an outstanding debt with HSBC, regardless of the circumstances, I would most likely have been denied the 2 cards.

I have contacted both the FTC and the local District Attorney's office and filed a complaint with the FTC. 

My main concern is that I am taking the California Bar Exam at the end of this month and any allegations of fraud can disqualify my Bar membership.  I normally am pretty rational about these types of things, but the second they said the word "fraud" I completely freaked out and lost all sense of reasonableness and almost paid these scammers!

I'm so glad I didn't pay a dime, and even the DAs office said this sounds like a scam, so I'm going to ignore these morons until after the Bar, and then I'm going to seriously consider suing them for FDCPA violations!  I'll keep you posted

[Anonymous]

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@CBuff wrote:

Thank you EVERYONE for all of your input! 

I was trying to think of whether or not this could in fact be a valid debt that I owe (outside of the fact that it's clearly outside the statute of limitations) and figured something out.  I applied for an HSBC card as well as a Best Buy card through HSBC in 2008, thus if I did actually have an outstanding debt with HSBC, regardless of the circumstances, I would most likely have been denied the 2 cards.

I have contacted both the FTC and the local District Attorney's office and filed a complaint with the FTC. 

My main concern is that I am taking the California Bar Exam at the end of this month and any allegations of fraud can disqualify my Bar membership.  I normally am pretty rational about these types of things, but the second they said the word "fraud" I completely freaked out and lost all sense of reasonableness and almost paid these scammers!

I'm so glad I didn't pay a dime, and even the DAs office said this sounds like a scam, so I'm going to ignore these morons until after the Bar, and then I'm going to seriously consider suing them for FDCPA violations!  I'll keep you posted

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Not necessarily.  While HSBC does blacklist, they have certain criteria by which they choose their victims.  Not everybody who causes them a loss is blacklisted.

It takes more than allegations.  They must be well-founded and relevant.  The SOL for a fraud prosecution in CA must have expired already and then their is the element of intent.  There's no way this could come back and bite you in the cheeks even were it true.

[RobertEG]

This is almost a total joke.

If you just read FDCPA 807 and 808, you will see numerous misleading or false representtions, and unfair debt collection practices.

What really burns me is their raising the issue of possible legal charges of fraud against you as an intimidation factor. That is beyond the pale.

Then, representing to be an attorney as a reason to avoid DV.

Until they have served legal notice of suit against you, they have not sued you. It is a violation of FDCPA 807(5) to threaten legal action that they cannot, or dont intend, to inititate.

Of course, there is no need for you to wait until your date of court to get validation.

From the day they bring legal action against you, you have the right to request any pre-trial discovery prior to your day in court.  That is a whole lot more powerful than any DV process.  You cant be required to go into court without the benefit of discovery.

I would almost welcome legal action by them.  That will open up your full power of the court to get anything reasonable to your defense.