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Being sued, who do I contact to negiotate?

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Being sued, who do I contact to negiotate?

I am being sued for a car that was repossessed years ago. I received the notice in the mail and would like to see if we can negotiate out of court. I do not want to obtain a lawyer as the amount of the suit is only $2,000. The debt is not with a collection bureau. The suit states the auto company and their lawyer in the correspondence. My question is, would it be best to call the auto finance company or their listed lawyers in the suit? Who would have the authority to make a deal in this matter?

 

Thanks!

Message 1 of 10
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Moderator

Re: Being sued, who do I contact to negiotate?

@steve9380  hi and welcome to the forums 

 

If you're "getting sued", you can expect that amount to double if it actually goes to court once attorney/litigation fees are added. 

You should contact attorney's office, as they are the ones calling the shots now.

Do whatever you can so they do not obtain a judgement,  because methods available to collect after they get the judgement are neither pleasant or gentle. 

 

 

 

Message 2 of 10
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Super Contributor

Re: Being sued, who do I contact to negiotate?

+1
-Our Community’s updated scoring wisdom: Link to Scoring Primer.
-For Negative Reason Codes see: CassieCard’s Score Factors thread.
-ccquest’s workbook to calculate metrics for you: Link to Workbook.

Oct 2020 New Account Scorecard.Nov 2020, No New Account Scorecard (reassignment conflated with aging. EX9 not updated yet. Oldest/avg varies. Estimates above.)
Real world mortgage maxes are: EQ5-818, TU4-839, EX2-844.


RIP:
(Everything said is JMHO and is not endorsed by FICO or MF. I have no affiliation with either, just a grateful member.)
Message 3 of 10
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Valued Contributor

Re: Being sued, who do I contact to negiotate?

Plan B: If you are not able to resolve it over the phone. Be sure to show up for your court date.

 

You don’t need a lawyer. Just show up and judge/majesty would send you two to negotiate/settle your case among yourselves. Then you can either come up with a payment plan or lump sum. Be sure to negotiate. Also see if they agree to remove the collection from your file once they are satisfied.

 

This type of collection agencies, hoping for you not to show up so they can get a judgment against you.

DO WHATEVER you can to show up so they cannot use a judgment against you : )

 

On a personal note, I had 4 of my collections go to court and I ignored the 1st one that resulted in a judgment which stayed on my record for a long time and significantly impacted my score. The other three that I showed up for was easy settlements, then reported as collection and eventually deletion.

 

Try to resolve it over the phone 1st. Good luck. 👍







           
Message 4 of 10
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Super Contributor

Re: Being sued, who do I contact to negiotate?

As OP said, this is NOT with a collection agency.

That being the case you could ask for them to delete the OC tradeline in order to help scores.

Additionally a judgment will not presently affect your score. The credit reporting agencies do not report judgments at this time. They did in the past but there was an agreement whereby they do not presently. They may begin again in the future that is unknown.

 

Nevertheless a judgment has other effects so you definitely want to avoid it. Definitely try to handle it over the phone and if you can't, definitely do not miss a court date. As stated above you typically have the opportunity to resolve it at court.

-Our Community’s updated scoring wisdom: Link to Scoring Primer.
-For Negative Reason Codes see: CassieCard’s Score Factors thread.
-ccquest’s workbook to calculate metrics for you: Link to Workbook.

Oct 2020 New Account Scorecard.Nov 2020, No New Account Scorecard (reassignment conflated with aging. EX9 not updated yet. Oldest/avg varies. Estimates above.)
Real world mortgage maxes are: EQ5-818, TU4-839, EX2-844.


RIP:
(Everything said is JMHO and is not endorsed by FICO or MF. I have no affiliation with either, just a grateful member.)
Message 5 of 10
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Valued Contributor

Re: Being sued, who do I contact to negiotate?

You said "years ago." Depending on your state and the time since this went into default, I would recommend looking into the statute of limitations for that debt prior to any negotiations. 

 

Many of the approaches here are appropriate, but there are also some shady actors that do try to threaten legal action when no court would allow them in due to the SoL. 

Bourbon and bow ties.
Current Cards:



2020 Goals:
$100K total CL (through organic/soft pull growth; COMPLETE!)
750+ across bureaus
No real goal cards for now
Garden Forever.
Message 6 of 10
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Super Contributor

Re: Being sued, who do I contact to negiotate?

+1

Very true there’s a separate Statue of limitations for reporting to the credit bureaus and for suing for a judgment.
-Our Community’s updated scoring wisdom: Link to Scoring Primer.
-For Negative Reason Codes see: CassieCard’s Score Factors thread.
-ccquest’s workbook to calculate metrics for you: Link to Workbook.

Oct 2020 New Account Scorecard.Nov 2020, No New Account Scorecard (reassignment conflated with aging. EX9 not updated yet. Oldest/avg varies. Estimates above.)
Real world mortgage maxes are: EQ5-818, TU4-839, EX2-844.


RIP:
(Everything said is JMHO and is not endorsed by FICO or MF. I have no affiliation with either, just a grateful member.)
Message 7 of 10
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Moderator

Re: Being sued, who do I contact to negiotate?

OP is most likely still within SOL.

 

Probably one of those states with middle of the road SOL, like 5-6 years. Also, that's probably the reason why they are about to get sued now. Debt went ignored maybe 3-4 years, former lender knows they wont be seeing money, and process starts just in time. 

 

Of course, I could be wrong, but I doubt that. 

 

Another thing, relying on "they are counting on you not showing up", sounds really good on the paper, but in practice, the possible ramifications of that approach can be devastating for those who cannot afford bank account liens and wage garnishments. 

When an account is sold multiple times, it's quite possible collection agency has name and amount only, so not showing up is a reasonable approach for collection agency. 

When account goes from original lender to being assigned for collection by a law firm, they will have what they need, they will show up, and they will make money unless all earnings are exempt. 

Because of being able to collect that way after they obtain judgement, they may not be "in a mood" to entertain settlement, in fact, fees will continue to accumulate till they take the money which can be years after they obtain the judgement. 

Have we covered renewing the judgement yet? 

Even if you change jobs, change banks, they have decade or longer to "find it", though that's very simple process. 

 

It's up to OP to decide what their risk tolerance is, and how much additional mess they want to create over an amount that's definitely not insurmountable. 

 

Good luck with however you decide to proceed 

Message 8 of 10
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Super Contributor

Re: Being sued, who do I contact to negiotate?


@steve9380 wrote:

I am being sued for a car that was repossessed years ago. I received the notice in the mail and would like to see if we can negotiate out of court. I do not want to obtain a lawyer as the amount of the suit is only $2,000. The debt is not with a collection bureau. The suit states the auto company and their lawyer in the correspondence. My question is, would it be best to call the auto finance company or their listed lawyers in the suit? Who would have the authority to make a deal in this matter?

 

Thanks!


It's safer for you to negotiate with the lawyer because the lawyer is the only person who can give you the paperwork you need to be safe that it's over. But once the lawyer sends you paperwork to sign you really should consult with your own lawyer to make sure the paperwork is right. Call your local bar association and ask for a referral for a consultation. Don't be pennywise and pound foolish.

 


Total revolving limits 653000 (575000 reporting)

Message 9 of 10
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Regular Contributor

Re: Being sued, who do I contact to negiotate?

Please check on if the statute of limitations (SOL) has passed or not. 

 

You mentioned that the car was repo'ed years ago. Depending on your state, you may have no obligation to pay, if:

 

1. the statute of limitations (SOL) has tolled, 

2. And you made no commitments to repay the debt in any form from the date of delinquency. 

 

if you do get sued, you need to show up in court and let the judge know that the SOL has passed. Case will be dismissed with prejudice.

Message 10 of 10
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