topic Re: Collection Atty. has me in a corner- NEED ADVICE in General Credit Topics

Collection Atty. has me in a corner- NEED ADVICE

Anonymous — Sun, 20 Apr 2008 22:04:09 GMT

A little long and full of mistakes I made. Please bear with me, any advice is greatly appreciated.

I received a quick cash loan from XXXX-Credit Union in Sept 04 for $1,500. I was out of work, so I don't think I even made one payment.

In Feb 08 I called the Credit Union to work out a payment plan for the account. They said it was no longer in their office and gave me a number to call. I spoke to a rep at XXXX-Law Firm out of MN,(I live in VA). I wanted to settle the account, but didn't have the money when I spoke to the rep. I set up payments for $239.00 a month. Rep said I could call and settle when I had a lump sum. Said the total balance was $2,798.00.

I gave him my debit card number and have made two payments. After being on this board reading and learning. I realize I was dumb, so before my 3rd payment was due this month. I called my bank explained the situation, my bank flagged my debit card as lost or stolen and it was immediately deactivated.

I called the Rep on the same day to settle the account for $1,200 including the 2 payments I already made. He told me that the OC Credit Union does not accept settlements and he could not accept one from me on their behalf. No surprise but this is not what he said on our first conversation. And the balance is now $2,560 (or something like that). But doesn't make sense since I've paid $478.00 already. And he mentioned that my payment was rejected. I didn't tell him that I had the card canceled.

Anyway, I called the OC Credit Union, they said since they are a Non-profit they can no longer accept payments on this account since it's charged off. And that the account was turned over to CU Recovery (not the Law Firm) they gave me CU Recovery number but I was not able to reach anyone on Friday.

At looked at the letter from the Law firm and at the bottom in small letters is this
Client: CU Recovery-Tier 2
Client ID: XXXX
File #: XXX
Also,
The only information on my credit report is the OC, for $1,500.

How should I proceed from here? I told the rep at the Law Firm I would call him back on Monday. He thinks, I'm trying to take out a loan or borrow from relatives to pay them off. I'm not, those were his suggestions.

With the way things are and other bills I'm paying off. I can't afford to keep paying the monthly payment. I really want/need to settle this account without having to pay back double what I borrowed.

Thanks in advance.

Re: Collection Atty. has me in a corner- NEED ADVICE

llecs — Mon, 21 Apr 2008 00:53:16 GMT

I would do three things.

First, I would stop calling. Never ever call a CA. Many reasons; if you want a few just ask.

Second, I would send a DV letter to the CA (law firm). This would stop the collection activity and give you more time to save $$$ to payoff the debt. A debt validation by the CA would also breakdown the charges and fees they seem to be charging you. Per the FDCPA, it is illegal for a CA to charge collection fees. Now it is OK for the OC to continue to charge late fees (up to a point) and also charge interest. The CA may be reflecting those charges.

Finally, I would contact the OC and ask for a written breakdown from them.

Save money as quick as possible and then offer a PFD once you are very near to the 100% owed mark. But only do this after you get responses back from the OC and CA.

Re: Collection Atty. has me in a corner- NEED ADVICE

Anonymous — Mon, 21 Apr 2008 01:56:50 GMT

Is this being reported by the OC...CA or anyone? What state are you in?

Never talk to a CA even if it is inhouse collections!!!

What is the DOFD/DOLA before it was COd? in other wordes...when did you stop paying which would have caused the account to be COd or closed?

Re: Collection Atty. has me in a corner- NEED ADVICE

Anonymous — Mon, 21 Apr 2008 03:05:26 GMT

llecs-
thanks for your advice. Just reading this board I have learned so much. Since I joined a couple of months my FICO has increased 50 points. This was a situation I got into before I fully understood how to handle them. I will mail out the DV tomorrow.

HappyDays-
I live in Virginia. This account is only being reported by the OC, showing balance $1500. The DOLA on EQ 7/05 and TU 11/05. I'm not sure which is correct.

Message Edited by DebtFreeMe08 on 04-20-2008 08:05 PM

Re: Collection Atty. has me in a corner- NEED ADVICE

Anonymous — Mon, 21 Apr 2008 05:09:27 GMT

I never heard of a CU being non profit...they do charge intrest. By making a payment you might have reset the SOL. I would check with a lawyer and get the correct info. Many states have laws about what intrest can be charged on an old debt.

It sounds more like the debt was sold. Make sure that you keep all hard copies of your CR with the OC reporting because that should have all the correct dates.

Never admit to any debt with a CA!!! If they call do not talk to them send the DV CMRRR

Re: Collection Atty. has me in a corner- NEED ADVICE

Anonymous — Mon, 21 Apr 2008 07:17:12 GMT

As far as I know, all CU are non-profit. Non-profit has nothing to do with the fact they charge interest. It has to do with the fact they do not make money for profit. It is all returned to the members. This allows for higher dividends paid and lower interest rates. CU are also exempt from federal income tax and in some instances, state taxes.

Message Edited by guiness56 on 04-21-2008 12:17 AM

Re: Collection Atty. has me in a corner- NEED ADVICE

Anonymous — Mon, 21 Apr 2008 15:14:12 GMT

Is it against the law for an Collection Atty to charge interest on a Charged-Off account they bought? The Atty is charging 29.00% interest. Which was the interest on the original loan.

But, the OC is not charging late fees or interest on this account. The amount on my credit report has been $1,500 since 2005 and has not updated since the account was charged off in 2005. (I borrowed exactly $1,500).

How can the CAtty charge interest but not the OC?

Re: Collection Atty. has me in a corner- NEED ADVICE

Jesedmotherof5 — Mon, 21 Apr 2008 15:48:02 GMT

Good Question- Bumping this to the top as I have had this on my mind for months I have to CA charging LOTS of Intrest

Re: Collection Atty. has me in a corner- NEED ADVICE

llecs — Mon, 21 Apr 2008 16:07:23 GMT

DebtFreeMe08 wrote:
Is it against the law for an Collection Atty to charge interest on a Charged-Off account they bought? The Atty is charging 29.00% interest. Which was the interest on the original loan.

But, the OC is not charging late fees or interest on this account. The amount on my credit report has been $1,500 since 2005 and has not updated since the account was charged off in 2005. (I borrowed exactly $1,500).

How can the CAtty charge interest but not the OC?

Read into this as you want from the FDCPA:

§ 808. Unfair practices

A debt collector may not use unfair or unconscionable means to collect or attempt to collect any debt. Without limiting the general application of the foregoing, the following conduct is a violation of this section:

(1) The collection of any amount (including any interest, fee, charge, or expense incidental to the principal obligation) unless such amount is expressly authorized by the agreement creating the debt or permitted by law.....

I guess you would have to check your T&C. I do know that some states will cap the limit. VA, for example, is 18% (last time I checked). But check with your particular state. The question to ask with the above statute is this: Who is the agreement with, you and the OC or you and the CA?

Re: Collection Atty. has me in a corner- NEED ADVICE

Anonymous — Tue, 22 Apr 2008 02:35:31 GMT

llecs -

where can I find this information relating the interest rate Cap? I am in Virginia as well. Also, how can I find out if this Atty office is authorized to collect in Virginia. They are based in Minnesota.

Thanks in advance

Re: Collection Atty. has me in a corner- NEED ADVICE

llecs — Tue, 22 Apr 2008 04:28:27 GMT

DebtFreeMe08 wrote:
llecs -

where can I find this information relating the interest rate Cap? I am in Virginia as well. Also, how can I find out if this Atty office is authorized to collect in Virginia. They are based in Minnesota.

Thanks in advance

I'm at a disadvantage - left everything at office but will post back in the morning.

As far as to tell if the CA is licensed, well, unfortunately, VA doesn't require licensing. The Commonwealth's statute leaves it up to individual localities to decide licensing procedures, if any. I'm in Fairfax County and no luck there. I work in Fairfax, and the same.

However, try MN:

https://www.pulseportal.com/Inquiry/searchEntityForProducerInfoSimple.do?method=menuInit&entityType=IL&criteriaNextAction=producerInformationSimple&moduleCode=PRDCR_LIC&serviceCode=RQST_CNSMR&accessCode=MN&functionCode=DC

Here's MN's statute:

http://www.state.mn.us/portal/mn/jsp/content.do?id=-536881352&subchannel=-536881391&sc2=null&sc3=null&contentid=536884923&contenttype=EDITORIAL&programid=536884491&agency=Commerce

Re: Collection Atty. has me in a corner- NEED ADVICE

Anonymous — Tue, 22 Apr 2008 07:23:09 GMT

First you need to find out if this is concidered a promissary note or open account. The SOL would be 3-5 years! If you have to call the AGs office & ask who handles consumers credit issues....in my state it comes under the banking dept. Each calls it something different.

If it is an open account(type) the DOFD/DOLA would be (9/2004 and 10 /2004) It would be past SOL!

If a promissary note it would be past SOL 11/2009

You really must know which SOL to go by!!

IF it is past SOL I would call the OC and see if they will accept a PFD

Always keep hard copies of your CR because the OC is showing & will have the DOFD/DOLA.....

Re: Collection Atty. has me in a corner- NEED ADVICE

Anonymous — Tue, 22 Apr 2008 07:25:16 GMT

guiness56 thank you I use to be a member of a CU but years ago....I had no idea of the non-profit but it makes sense....thank you for the info!!!!!

Re: Collection Atty. has me in a corner- NEED ADVICE

Anonymous — Tue, 22 Apr 2008 07:56:25 GMT

No problem and you are welcome.

Re: Collection Atty. has me in a corner- NEED ADVICE

Anonymous — Tue, 22 Apr 2008 17:00:06 GMT

I checked the links provided and can not find any information about this 'Como Law Firm'.

I did a Google search and found some negative comments about them and their generic website.

I'm going to DV the OC- credit union, CU Recovery and the Law firm to see what I get back.

Thank you all for your help.

Re: Collection Atty. has me in a corner- NEED ADVICE

Anonymous — Tue, 22 Apr 2008 17:23:16 GMT

You do not DV an OC.

Re: Collection Atty. has me in a corner- NEED ADVICE

Anonymous — Tue, 22 Apr 2008 17:57:53 GMT

DebtFreeMe08 wrote:

In Feb 08
...
I set up payments for $239.00 a month. Rep said I could call and settle when I had a lump sum. Said the total balance was $2,798.00.

I gave him my debit card number and have made two payments.

Making a payment, in most states, will reset the SOL. In some states, a firm offer to pay will reset the SOL.

Re: Collection Atty. has me in a corner- NEED ADVICE

Anonymous — Tue, 22 Apr 2008 18:11:45 GMT

http://leg1.state.va.us/cgi-bin/legp504.exe?000+cod+8.01-229

§8.01-229 (G)(1) If any person against whom a right of action has accrued on any contract, other than a judgment or recognizance, promises, by writing signed by him or his agent, payment of money on such contract, the person to whom the right has accrued may maintain an action for the money so promised, within such number of years after such promise as it might be maintained if such promise were the original cause of action. An acknowledgment in writing, from which a promise of payment may be implied, shall be deemed to be such promise within the meaning of this subsection.

I take this to mean that both payments and promises to pay reset the SOL. However, not a lawyer. Mom and Dad were and remain married.

Re: Collection Atty. has me in a corner- NEED ADVICE

Anonymous — Tue, 22 Apr 2008 18:12:57 GMT

I went ahead and called the OC- credit union. They still say because of their Non-Profit status they can not accept payments on this Charged-Off account.

But, they did fax me a copy of agreement. It is actually a Line of Credit. They have at the top of the page. Loanliner Credit Agreement- Open-End Signatures. I signed it on 9/2/2004.

My 3 credit reports show different DOLA as 7/2005 or 11/2005. Does anyone know when SOL, should be up for this one?