Need Advice, Collection Account just deleted recently.

[Anonymous]

So my brother owes this bail bond company about $7,000 and since it got charged off, it came in my name, and my mom's since we co-signed for it. I have excellent credit but this brought it down, so I made my brother call them last week. 

He told them that I am getting ready to use my credit again and so I needed this to be off, and if he can set up payment arrangements, or if I elected to do a pay and delete for him, how much would they need to move forward with having fully deleted off all of our reports. They came back with $4,000. However they informed me that I am being sued by them and court session will begin mid July for the debt. So he has until then to to the PFD or set up a payment arrangement to stop the process. So he called me and told did I want to do the PFD and he would pay me back. 

Now the crazy part is I woke up today to check my reports as usual, and its gone, The collection just dissapeared, and brought down my debt and up'd my scores crazily. However I have not went through with the PFD, and my younger brother has not set up the payment arrangement. So I need advice from you guys, why did this just happen, and what should I do?

My Goal: I do not want it to come back on my report.

I WANT TO CALL THEM and ask but I'm scared it was a clerical error, and I don't want them to resubmit it, but I do not want them garnishing my wages, so should I have my brother call them to at least set up a payment arrangement? Or maybe is it deleted out their system? Like whats going on? 

[URL=http://s1173.photobucket.com/user/ReaLiLJ/media/Screen%20Shot%202017-06-29%20at%2010.54.24%20AM.png....]

Picture of Drop-off

[RobertEG]

It is hard to say why the debt collector reported deletion of their collection.  It is usually due to their collection authority having been terminated.

In any event, there is no restriction on eithr re-reporting by the same debt collector, or reporting by any newly assigned debt collector.

If prevention of any reporting of a collection is the goal, then you should determine who currently has collection authority, and make a pay for not reporting offer.

Personally, I would call them, and not rely on the ostrich approach.

The huge unknown is their statement that they have filed a civil action.  If a judgment is rendered, that will likely find its way to his credit report.

Have you checked with the court to determine whether a civil action has been filed, and if so, whether service of notice has been made, and a court date actually scheduled?

[Anonymous]

Thanks for the prompt reponse, I did exactly what you told me to check the court informaiton! I didn't know you could do that. Here is what it says:

Filing Date:  06/02/2017
Case Type:  COLLECTIONS CASE (Limited Jurisdiction)
Status:  PENDING

Future Hearings 

05/18/2020 at 08:30 AM in Department SEB at xxx Blvd, xxxxx, CA xxxxx
OSC - 3.740 COLLECTIONS-DEFAULT JUDGMENT

It then shows our names and then at the bottom shows this:

CASE SUMMARY

Case Number:  xxxx
xxx VS. Younger Brother

Court:   xxx (Its in Los Angeles) Courthouse

Filing Date:  06/02/2017
Case Type:  COLLECTIONS CASE (Limited Jurisdiction)
Status:  PENDING

Future Hearings 

05/18/2020 at 08:30 AM in Department SEB at xxxxx Blvd., xxxxx, CA xxxxx
OSC - 3.740 COLLECTIONS-DEFAULT JUDGMENT


 
Parties 

Plaintiff:  xxxxxx BAIL BONDS
Attorney:   LAW OFFICES OF xxxx

Defendant:  xxxxxx
Attorney:   None

Defendant:  xxxxxx
Attorney:   None

Defendant:  xxxxx
Attorney:   None

 
Histories (Dates listed in descending order) 

06/13/2017 OSC HEARING IS SET FOR 05/18/20 AT 08:30A M., IN
DEPARTMENT SEB . ORDER TO SHOW CAUSE HEARING SIGNED AND
FILED BY xxxxxxx, JUDGE TO SHOW WHY SANCTIONS
SHOULD NOT BE IMPOSED FOR FAILURE TO FILE PROOF OF
SERVICE AND FAILURE TO FILE DEFAULT JUDGMENT PURSUANT TO
CRC 3.740. CERTIFICATE OF MAILING FILED.

06/01/2017 COLLECTIONS CASE COMPLAINT FILED PURSUANT TO CRC 3.740. RN
NOR4xx3710xx.

06/01/2017 SUMMONS ISSUED.

06/01/2017 SUMMONS FILED.

[Anonymous]

"It is usually due to their collection authority having been terminated."

If the reporting authority for CA is maximum 2 years I doubt that, as it is only been 2 years. And this bail bond company is pretty big.


Also to correct myself he gave me until July 14th to act, but it seems like the filings and court cases have already begun. Possibly he was just trying to get money out of me since my younger brother said I was getting ready to buy a house and needed it removed ASAP?


"Personally, I would call them, and not rely on the ostrich approach."

Should I now call them now that I know more about the situation, or now that I provided more information about everything how do you think I should proceed?

[RobertEG]

Did he ever receive service of notice of the civil action, and did he ever file a response back to the court?

If served and no response is filed, they have a period for filing a request for a default judgment.

He should consult an attorney if he has any questions regarding service or reponse to the complaint.

It gets complicated real fast, as seen by a quick review of the relevant California code referenced in the file history, and he should obtain advice from an attorney as to dealing with the civil action........

2017 California Rules of Court

Rule 3.740. Collections cases

(a) Definition

"Collections case" means an action for recovery of money owed in a sum stated to be certain that is not more than $25,000, exclusive of interest and attorney fees, arising from a transaction in which property, services, or money was acquired on credit. A collections case does not include an action seeking any of the following:

(1)Tort damages;

(2)Punitive damages;

(3)Recovery of real property;

(4)Recovery of personal property; or

(5)A prejudgment writ of attachment.

(b) Civil Case Cover Sheet

If a case meets the definition in (a), a plaintiff must check the case type box on the Civil Case Cover Sheet (form CM-010) to indicate that the case is a collections case under rule 3.740 and serve the Civil Case Cover Sheet (form CM-010) with the initial complaint.

(Subd (b) amended effective January 1, 2009.)

(c) Exemption from general time-for-service requirement and case management rules

A collections case is exempt from:

(1)The time-for-service requirement of rule 3.110(b); and

(2)The case management rules that apply to all general civil cases under rules 3.712-3.715 and 3.721-3.730, unless a defendant files a responsive pleading.

(d) Time for service

The complaint in a collections case must be served on all named defendants, and proofs of service on those defendants must be filed, or the plaintiff must obtain an order for publication of the summons, within 180 days after the filing of the complaint.

(e) Effect of failure to serve within required time

If proofs of service on all defendants are not filed or the plaintiff has not obtained an order for publication of the summons within 180 days after the filing of the complaint, the court may issue an order to show cause why reasonable monetary sanctions should not be imposed. If proofs of service on all defendants are filed or an order for publication of the summons is filed at least 10 court days before the order to show cause hearing, the court must continue the hearing to 360 days after the filing of the complaint.

(f) Effect of failure to obtain default judgment within required time

If proofs of service of the complaint are filed or service by publication is made and defendants do not file responsive pleadings, the plaintiff must obtain a default judgment within 360 days after the filing of the complaint. If the plaintiff has not obtained a default judgment by that time, the court must issue an order to show cause why reasonable monetary sanctions should not be imposed. The order to show cause must be vacated if the plaintiff obtains a default judgment at least 10 court days before the order to show cause hearing.

Rule 3.740 amended effective January 1, 2009; adopted effective July 1, 2007.

[Anonymous]

He has not been served nor have I, I have to check with mom though, she says she has some mail from them, and doesn't know if it's one of those advertised mail, or actual notice. Once I have that I will upload it here. He has never responded to court action at all he's said.

I know for a fact though we have not been served in person, because I had to serve my auntie tenants twice, and I know it requires in person, or cerified mail. If my mom has that then I know its a problem if not, I will let you know and we can go from there. I see that they have a future date set for 2020, if I ever settle with them before then, or pay the $7k, once its paid since its deleted now they can never put it back on my credit right? (Even if the full amount was not received, but they accepted settlement)

My solution: If my mom has not been served through mail or in person, I am going to call and try to settle with them on my brother's behalf and then once its settled do what you inforrmed and tell them I will only submit final payment if they promise not to report, for a Pay for non-report.

[RobertEG]

Sounds good.

My concern would only be if they have already made proper service and he has failed to provide his response/answer within the period set in the summons.

In that event, the plaintiff can move directly to a request for a summary default judgment based on lack of any response/answer.

If the case is not yet ripe for grant of a default judgment, then I would not hesitate to contact them.

However, if he has received proper service and then failed to submit a response/answer, that is a concession of each item in the complaint, and thus basis for award of a default judgment.  In that case, contacting the plaintiff could prompt them to immediately file their motion for a default judgment without any response or negotiations.

In that even, I would advise contacting an attorney prior to any communications with the plaintiff.  He may be able to first file a late response/answer to avoid a default judgment.

[Anonymous]

Sorry its been awhile, family emergency came up, been in seattle! 

However, my mom reached out and said, that this guy came to her door and left papers on her porch. I can post the sheet but its marked under Rules 3.740 collections (09) What should I do now? She said she didn't answer because she didn't know who he was, and after about an hour he left the papers on the porch and drove off. 

I want to end this now, and be done with it. Its officially off my credit reports, but I don't want my wages or my mom's being garnished for it, how should I proceed?

(Said it was filed June 2, 2017 on the paper) Their demanding about 6k on the paperwork. Mom is worried, got her stuff in a bunch. However I want to proceed smartly.

[RobertEG]

I would recommend consultation with an attorney.

[Anonymous]

Ok will do thanks!