CALVARY PORTFOLIO suing mom?

[JSS3]

Mom's CITI card was sent to collections after she stopped paying in 2012. The amount is 15,000+. It is scheduled to drop off of her reports later this year.

7 months ago, Calvary Portofolio took up that account and has been calling and now writing about bringing her to court. Is this a real possibility or scare tactic?

[fishbjc]

for $15,000....I'd say they aren't playing.  They are either looking for a 'settlement' or plan to file suit.  They've sued for a lot less.  A lot.  

Good luck, let us know what happens.  Hopefully, someone with more experience on this will pop up with advice.  

[MyDataMyChoice]

Where do you live?  Statute of limitations?

[beutiful5678]

Cavalry sued me for 1/10th of that, so, no this probably isn't just a scare tactic.

[JSS3]

Lives in New York.

Statue: The Citi collection is scheduled to fall off the end of this year. Calvary took it over 7 months ago.

When they sue, and if they win, what occurs? Are your wages garnished? Does the win from Calvary then open a new delinquent account with the new judgement owed that stays on your reports?

What happened in your case when they sued?

[beutiful5678]

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@JSS3wrote:
Lives in New York.

Statue: The Citi collection is scheduled to fall off the end of this year. Calvary took it over 7 months ago.

When they sue, and if they win, what occurs? Are your wages garnished? Does the win from Calvary then open a new delinquent account with the new judgement owed that stays on your reports?

What happened in your case when they sued?

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For me personally, nothing much has happened yet. But I don't exactly have wages for them to garnish (I've worked mostly freelance these past few years). The judgment hasn't shown up on my report yet - I'm hoping to get it paid off before it does (though I don't know if paying it off prevents it from showing up - for all I know it could pop up as a paid judgment on my report at any time after I've paid it).

[JSS3]

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@beutiful5678wrote:

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@JSS3wrote:
Lives in New York.

Statue: The Citi collection is scheduled to fall off the end of this year. Calvary took it over 7 months ago.

When they sue, and if they win, what occurs? Are your wages garnished? Does the win from Calvary then open a new delinquent account with the new judgement owed that stays on your reports?

What happened in your case when they sued?

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For me personally, nothing much has happened yet. But I don't exactly have wages for them to garnish (I've worked mostly freelance these past few years). The judgment hasn't shown up on my report yet - I'm hoping to get it paid off before it does (though I don't know if paying it off prevents it from showing up - for all I know it could pop up as a paid judgment on my report at any time after I've paid it).

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So they took you to court and got a favorable verdict? What does that look like? Is it a judgement for the full amount that is supposed to show up or garnish your wages(although not yours right now)?

I want to tell her about the process and worst case scenario. 

Thanks for all the input thus far.

[bass_playr]

First, there are two SOL periods.  The reporting time is set by federal law--the FCRA.  The time to sue is a different SOL and that is set by each state's laws.  Since your mom is in NY, there is a possibility of either 3 years or 6 years from the time the account went delinquent.  NY's standard SOL for consumer credit transactions is 6 years, but you have a law there called CPLR 202, which is NY's borrowing statute.  NY Court of Appeals has recently ruled that the borrowing statue does apply on any debt collection lawsuit where the original creditor is outside the state of NY.  If I recall right, CITI, like most, uses Delaware as its place of business.  DE has a THREE year SOL.  So, it's possible right now that this debt has passed the SOL and if they sue on an expired SOL like that, you have a way to get the case dismissed.  Even if 6 years applies, it's still possible that the SOL has passed, depending on when in 2012 the account went past due.  Remember too---making a payment does not equal SOL in all cases.  For example, in some states, if the account is past due by $1000 and you pay $50, the delinquency still exists, so the payment does not affect the SOL.  

Here's a link to a case as mentioned above, where CPLR 202 came into play and the SOL was determined to be 3 years:  https://www.law.cornell.edu/nyctap/I10_0068.htm

EDIT--Citicorp is indeed a Delaware corporation.  The borrowing statute may well be enough to shut that whole mess down on them.

[Anonymous]

From what I understand, you'd have to find out the SOL for this debt. Just because it will fall off her reports, doesn't mean she's not still responsible for the debt. The statute of limitations could possibly be longer than the reporting time for CRAs.

[JSS3]

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@bass_playrwrote:

First, there are two SOL periods.  The reporting time is set by federal law--the FCRA.  The time to sue is a different SOL and that is set by each state's laws.  Since your mom is in NY, there is a possibility of either 3 years or 6 years from the time the account went delinquent.  NY's standard SOL for consumer credit transactions is 6 years, but you have a law there called CPLR 202, which is NY's borrowing statute.  NY Court of Appeals has recently ruled that the borrowing statue does apply on any debt collection lawsuit where the original creditor is outside the state of NY.  If I recall right, CITI, like most, uses Delaware as its place of business.  DE has a THREE year SOL.  So, it's possible right now that this debt has passed the SOL and if they sue on an expired SOL like that, you have a way to get the case dismissed.  Even if 6 years applies, it's still possible that the SOL has passed, depending on when in 2012 the account went past due.  Remember too---making a payment does not equal SOL in all cases.  For example, in some states, if the account is past due by $1000 and you pay $50, the delinquency still exists, so the payment does not affect the SOL.  

Here's a link to a case as mentioned above, where CPLR 202 came into play and the SOL was determined to be 3 years:  https://www.law.cornell.edu/nyctap/I10_0068.htm

EDIT--Citicorp is indeed a Delaware corporation.  The borrowing statute may well be enough to shut that whole mess down on them.

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WOW...thanks so much for going above and beyond to take time out and gather this.