Help ! Garnishment threat

[Anonymous]

I have an auto collection for a voluntary repo that I signed a payment arangement with the company but when I requested they correct the way they were reporting to the 3 cb they responded with a threatening call to sue and garnish me. I have not missed a payment and I dont think they can void the agreement BUT I am scared. They have offered me 3 option 1 sign  a new agreemnet with a higher payment and higher interest. 2 settle the account which they know I cant 3 file chapter 13 bk to avoid the garnishment (his

words) I spoke to an attorney to ask if they could sue for the balance and she referred me to a settlement dept in her firm that wants $750 retainer to start settlement negioations which  I dont even have but could possible sell some stuff if needed. This would NOT prevent the company from suing me but could possibly get them off my back if they agree to settle.

I dont know what to do Can I be sued with a signed payment arangement that has NOT been broken by me?

[StartingOver10]

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@Anonymous wrote:

I have an auto collection for a voluntary repo that I signed a payment arangement with the company but when I requested they correct the way they were reporting to the 3 cb they responded with a threatening call to sue and garnish me. I have not missed a payment and I dont think they can void the agreement BUT I am scared. They have offered me 3 option 1 sign  a new agreemnet with a higher payment and higher interest. 2 settle the account which they know I cant 3 file chapter 13 bk to avoid the garnishment (his

words) I spoke to an attorney to ask if they could sue for the balance and she referred me to a settlement dept in her firm that wants $750 retainer to start settlement negioations which  I dont even have but could possible sell some stuff if needed. This would NOT prevent the company from suing me but could possibly get them off my back if they agree to settle.

I dont know what to do Can I be sued with a signed payment arangement that has NOT been broken by me?

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Did she answer your question? Sounds like she didn't really answer you from your post and this is really a legal question.  Have you considered contacting another attorney? 

[Anonymous]

She didnt answer anything really more sales pitch on how much the settlement could help me. I spoke to another attorney tonight and he stated that the best option would be Chapter 13 BK (since we fied 7 in 2011). I have worked so hard to get my scores up to be able to purchase  home I am dying that this could be it and all has been in vain.

[Anonymous]

You can be sued for anything.  Can they win, probably not in court but they know that the threat of an action is enough to extort most folks to sign just about anything.  The cost of an attorney plus fear will result in most being willing so do just about anything to make it go away.  You have to decide what is in your best interest.  I would probably call their bluff. If they file a suit I would file a complaint against the attorney with the Bar Association.   I am not an attorney but I have been in a situation like this in the past.  There are risks of course.  I suppose the other option is to file a consumer financial protection buerau complaint.  In fact there is no downside to that one so I would probably make that my very first step.  That agency has tremendous power over creditors and collection agencies, they will protect your rights.

[Bankrupt2019]

It would seem that with a signed contract in place they would have a hard time suing you for anything. But I'm no lawyer.

[Anonymous]

Working for 850:

I actually filed that complaint yesterday and this morning got a call from the company stating I was totally in the right the guy at their company is wrong and what can they do to resolve the issue Thanks so much for all your help everyone it looks like this is cleared up

[Anonymous]

CFPB has tremendous powers so lenders and collection agencies are afraid of them. Happy to hear you got this resolved so quickly.

[6speed8]

I wouldn't sweat it either way. If you have a payment agreement and have been paying as agreed, even if, BIG IF, they sued you, I doubt a judge would award in their favor. The joker you spoke to was probably bucking for a bonus.

[Anonymous]

I believe you are correct that he/she wouldn't lose the suit but that doesn't mean there was nothing to worry about . If you fail to show for court you get a default judgement and if you show up your suddenly in a position of having to defend yourself or hire an attorney neither of which is desirable. It's not something you blow off and in this case using the CFPB really stopped this extortion in its tracks

[6speed8]

That's not as scary as it sounds though. All you'd have to do is show up. If you're "paying as agreed", the court is most likely going to rule in your favor quickly just to clear their docket. I spoke to a procecutor a couple of years back when my finances started falling apart. YES, you can be sued by anyone for anything, but if you're paying a debt "as agreed", it's far fetched a judge will rule in favor of a debt collector because they changed their mind mid-way through the agreement for no legit reason or advanced notice. Late payments? Missed payments ? Then you're on thin ice..