Question about Answering a Debt Collection Lawsuit Summons

[golby260]

This post is pretty much an update on a thread I had back in April 2011, and I'm just requesting some advice.

All of the pertinent information is here, http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/Sad-and-unemployed-Really-would-appreciate-ad... except that now it's a different law firm representing Square2/CACH, and now, since May 22, although technically, they filed the paperwork back on April 13, I've received summons to answer their lawsuit.

I'm being sued for $5063.17, what I still owed Bank of America, with what they say is a "accrued interest" of $1031.62, with an "additional pre-judgement interest at the rate of 23.24% per annum."  I also owe lawyer's fees of $531.32.  I have to answer the summons within 30 days of having received it, the deadline of which is coming up on June 22.  I live in Georgia, and this collection debt itself is about a year old now.

What I have done so far is, on May 23, call a lawyer off of the NACA list, and I've discussed with him a few of the particulars of my case.  He suggested that I try to see first if Square2/CACH had done anything fraudulent, like leave me voicemail which didn't explain who they were, who they represent, and the purpose of the call.  He also wanted me to call him in two weeks.  I just called him again today, and I've told him that so far, it looks like CACH has done everything correctly.  He says he may want to look at the Summons and my Transunion Credit Report, which I also pulled on the 23rd, for any discrepancies.  He says that I could hire him for $750. :/  I would like to hire him, since he sounds experienced, but I don't have the money, and I've just told my mom today about it, and she refuses to help, says that she has no money for a lawyer and that I don't need one.

I've already tried to get a legal aid.  I live in the metro Atlanta area, so, yesterday, I contacted the Atlanta Legal Aid Society, and see if they would help, but they wanted to know the income of all of the adults in my household, and just because both of my brothers and my mother are all working now, they say I'm overqualified.  Then, I contacted the Atlanta Bar Association, and they wanted me to pay $35 for a referral.  One lady managed to give me a name and number of one laywer for free, but I'm a bit wary of calling that one since I'd have to reintroduce that person to the whole case, she wasn't even in the office yesterday, and her receptionist was rude.

What do you think I should do?

ADDENDUM: I do have a job about to be lined up: I'm about to be hired as a Casual Mail Handler for the Post Office.  At this point, it's a matter of getting the date to attending Orientation and getting my schedule, and I could finally get my hours to work.  I also have a CNA skills exam (bleh) to take on the 22nd this month.  I'm trying to get all of this squared away so I can move on and make money.

[RobertEG]

Is the debt valid?  What do you plan as offering as a defense?

Two things I would most definately do.

1. Ensure that the debt is still within SOL, and

2.Dig out a copy of my account agreement, and see if any of the charges asserted in their action are authorized in that agreement.  You might contest items that are not specifically authorized in your account agreement.

See FDCPA 808(1), which states that it is a violation of the FDCPA to collect or attempt to collect any interest, fee, charge incidental to the principal amount unless it is specifically authorized in the agreement creating the debt or provided by law.

[golby260]

EDIT: oops. Accidental blank post!

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@RobertEG wrote:

Is the debt valid?  What do you plan as offering as a defense?

Two things I would most definately do.

1. Ensure that the debt is still within SOL, and

2.Dig out a copy of my account agreement, and see if any of the charges asserted in their action are authorized in that agreement.  You might contest items that are not specifically authorized in your account agreement.

See FDCPA 808(1), which states that it is a violation of the FDCPA to collect or attempt to collect any interest, fee, charge incidental to the principal amount unless it is specifically authorized in the agreement creating the debt or provided by law.

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As far as 1 goes, the account itself was 9 years old in duration while it was open, but the account has been closed for a year and the collection itself has been going on for a year.

As far as 2 goes, I don't know where I could find a copy anymore, but the copy of the agreement that they pasted themselves onto the summons says they're allowed to collect lawyers' fees, but not interest. 

Should I get a lawyer, or do you think I could go without one?  I would prefer to get a lawyer, but I can't do anything without money...

[golby260]

Please... someone help!  What can I do about this case if I can't afford a lawyer?  A response is highly appreciated!

[golby260]

BUMP

[compassion101]

I'm still pretty green to credit issues etc but If the charges are valid, I'm not sure there is alot of defense for you to go on. other than maybe some of their add-on charges cannot be added on. I understand you'd rather not have to pay it of course, but if you actually owe it there isn't much defense other than technical findings on your end, which maybe the lawyer can help you with. Has he mentioned what he thinks he would be able to do for you? If what he can do for you is worth more than the $750 then do what you can to get the money to hire him.

[golby260]

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@compassion101 wrote:

I'm still pretty green to credit issues etc but If the charges are valid, I'm not sure there is alot of defense for you to go on. other than maybe some of their add-on charges cannot be added on. I understand you'd rather not have to pay it of course, but if you actually owe it there isn't much defense other than technical findings on your end, which maybe the lawyer can help you with. Has he mentioned what he thinks he would be able to do for you? If what he can do for you is worth more than the $750 then do what you can to get the money to hire him.

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Well, what I mainly hoped for in the beginning, long before there was ever a lawsuit and when the account was first charged-off, was some sort of reasonable payment plan, although that's probably not best for my financial situation now.  I'm still not working, yet, and I'm still waiting on the Post Office to fully hire me, which could be between today and the next week or two, so I guess what I could hope for is a settling for a lump sum and maybe even a Pay For Delete, although I don't even have the money right now for that one, either.  I just don't want any garnishment or any sort of FiFa on my record.

I wish I could hire the lawyer because he's a local NACA (National Association of Consumer Advocates) member, and having an debt collector expert to help navigate these things with would give me some ease, even though he keeps emphasizing that I need to find something we could counter-sue them for, and then, I won't have to pony upfront any money. :/  Unfortunately, the only people I have to ask, my family, is too busy being offended at me for even suggesting the idea of a lawyer than even considering the possibility of making it work.  I mean, I know they got their own money issues, and maybe what I'm asking for is a lot, but their reaction to the whole thing is just really off-putting.  And how am I supposed to go up against a law firm by myself and not end up falling on my [butt?]  Yikes.

Mainly, the lawyer wanted me to find any incriminating fraudulent phone calls and mail, and I haven't really received either.     He was also suggesting that we file for Discovery, "to scare them a bit."  Meh. 

I guess, what I want to do is settle or negotiate or whatever, (I don't know), whichever is possible and best for me, but I don't want to pay more than what I originally owed.  I don't care about the lawyer's fees, but I don't want to make payments with some jacked-up APR with extra interest, when I was trying to close the account to begin with.

I guess my real question is, is getting a PFD from these guys possible?  That's what I really want.  And is there any way to request such in the Answer letter?  I don't know where to start on this, really.

[golby260]

[Never mind.  I'll just wing it.]

[JohnPTEX]

Check to see if there is a Lawyer's assistance program in your area - trying calling the local courts or a nearby law school if you cant find the information

[tipofthespork]

Please don't take my post as disrespect or anything of that nature, but i'm going to say what i'm pretty sure most of the experienced guys are thinking.

You are more than likely stuck.

You have a valid debt and it is within SOL.

You want an attorney but can't afford one.

The attorney wants you to find something to counter-sue them on and you can't. the reason he's saying this is if he counter-sues instead you you paying him his fees he can request BoA pays them.

Realisitcally they have you right where they want you. The have a valid suit and you don't have a defense. You have to ask yourself, why would they settle with you for a lesser amount at this point?

I would think your BEST course of action would be to contact them and request a payment plan and keep it out of the courts hands. This may be the only way to keep a judgement off your credit report.