Anyways, I have done some research online, but none of the things I have read really clarify what to do, and many aren't similar enough to my story. So here goes... I am bowing my head down and putting my tail between my legs, to tell you all the story of my irresponsibility :-/ ... thanks in advance for any help!!!
The card was originally a $300 limit. At first I maintained payments and my limit was raised to $500. Eventually I maxed out the card, and between over limit fees and lack of resources, I let the card fall way behind. It has been in default since Feb 08. I called the CC company last summer to try to work out arrangements. I explained that I was a poor college student, and did not have the money to make a large payment. The only options they gave me were, a: pay $400 to get the card below limit and remain active, or b: pay $700 to settle and close out the card. I explained I didn't have the money to pay at that time, and no resolution was reached. I (dumbass) let it go after that and its been in default since.
Now I am being sued. The explanation shows about $500 of my own charges and $180 in interest. The total balance I owe is around $1700, when court costs, lawyer fees, and over limit fees are factored in.
I DO have a job, but its not so steady. In about 3 weeks I'll be getting a financial aid refund of around $750, and can use some/all to pay on the balance. I also got a letter from a company that says they're a ';mediation firm'; and that they can save me money and help me out. Is a place like that worth a call?
Ok... I'm a writer, so I'm rambling. I've told my sob story, and I hope I get some generous people willing to help. Thank again in advance!I'm being sued by my credit card company... advice?
When you get sued you go to court, and either tell the judge you can make a payment plan ';but at the amount YOU can pay monthly and that you can't afford what the CC company wants monthly';. The judge will set up the payment plan for you. That eliminates the mediator.
However the judge may look at you and determine that at some point in time you ';can'; pay it off and will send it to mediation. A mediator is hired by the court and they set up an appointment for you and you go there and determine the monthly amount you can afford (showing your assets). Otherwise if you all cannot come to a consensus then they could possibly garnish your wages if you are working or when you are working. Garnishment is an embarrassment, and if by chance you get out of a job it will follow you and the new employer might not want to fool around with that and may let you go. So eliminate the garnishment if you can.
If you never make payment the amount can grow and grow until they can put a lien against something you own like a car or house and they will continue with the interest until you try to sell either and they will take their money off the top (of the sale), or they could take it to court and put a lien on your car and then file another document that will force you to sell your car (when you've build up enough equity) and pay them what you owe them.
A refund of financial aid money is supposed to be used for schooling and only schooling. If it's from a loan then it's best to repay that student loan.
Now, you could get a second job and make payments on that credit card balance. If you were a poor person, didn't have much of a career or future, or the ability to have anything in your life I'd suggest that you might want to not pay that bill at all, to let it ride because the statute of limitations on repaying a bill like that may run and they couldn't collect on it....but that's why they're rushing you on paying it, they want to make sure you don't pull that statute of limitations law on them and they know someday you can and will afford to pay them back.I'm being sued by my credit card company... advice?
I would stay far, far, far away from any ';mediation'; firm or other non-attorney who claims to be able to assist you.
I would call the attorney for Capital One and offer $750 to settle. If they accept, write a letter, enclosing the money, and write on the check and in the letter ';payment in full for xxx account';.
If you have the money, try to settle before the matter goes to court. Be advised that attempting a settlement prior to court with the other side's attorney is a VERY tricky thing to do, so be careful. Your best chance of settling is when you have a lump sum to pay the settlement all at once. Be sure to get a written settlement agreement from the PRIOR to making any payments. NEVER accept settlement terms over the phone without a written agreement.
IMPORTANT: Don't make the mistake of cutting a ';good faith'; payment to their attorneys without any sort of written agreement that they'll cease legal action...If you do this they'll simply take your money and sue you anyway.
If you can only pay them a settlement in installments per month then it gets more complicated. The problem is that they will invariably want you to sign away your legal rights for any settlement agreement by signing a document that authorizes an instant judgement. DO NOT sign such an agreement or any agreement that waives your legal rights. NEVER, EVER trust any “advise” they give you, regardless of how “nice” they might seem on the phone. Remember, the are 100% against you best interests. Accepting advise from them on what to do is like Tweety Bird accepting advise from Sylvester the Cat. Also, do not fill out any questionnaires or paperwork requesting personal information for you to sign and mail back to them...They will use these documents against you if you do. Do not admit to owing the debt in writing...even if you do owe it.
If you cannot reach a settlement prior to court, then do this:
Send this debt collector and the court a letter via Certified Mail with Return Receipt (NOT regular mail) stating:
Notice of Intent to Defend
I cannot officially respond to your claim until validation is made for the alleged debt. I am officially requesting validation of your claim, to include (this info will be requested at the court hearing):
- A copy of the original application with my signature for this alleged debt
- How much was this debt purchased for?
- Provide a fully itemized statement for the amount you are asking which clearly details how this amount over the amount that was paid for this debt was calculated, including the interest rate being charged. Confirm that this rate falls within state usury limits
This letter has been mailed via Certified Mail with Return Receipt. Receipt of this letter is being officially time stamped.
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Fill out the response to the court the best that you can. If you are asked if you Affirm or Deny the claim, mark ';Deny'; and mail that along with the above letter stating that you cannot affirm or deny the claim until the claim has been validated. Also mail this via Certified Mail with Return Receipt
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On the court date: DO NOT be a no-show under any circumstances whatsoever. Not showing up is the worst thing you can possibly do. Even if you are frightened....or you're sick with a 102 degree fever...or if you think that you'd loose, show up anyway! If you don't, the other side will get a default judgement and they will get this on THEIR terms. They will tack on all sorts of add-on fees and the amount of the judgment could end up being two or three times the actual amount of the debt.
IMPORTANT: bring complete documentation of your income and living expenses: Pay stubs and copies of bills. Even if you loose, you can use this to negotiate much more favorable repayment terms. Request the following info from the other side on the court date:
- a copy of the original application with your signature
- a fully itemized statement for the amount they are asking which clearly details how this amount was calculated, including the interest rate being charged - How much was this debt purchased for?
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Lastly....if they take you to court and win a judgement, this will authorize them to freeze your checking accounts....To be safe, this might be a good time to start pulling out any money you have in check/savings accounts and putting the cash in a safe deposit box to keep them from getting your money.
Here's what I would do.
I would answer the summons %26amp; complaint by denying all accusations for lack of information. (You have to do this within the first 30 days.)
I would file requests for discovery seeking a variety of paperwork (e.g., copies of signed application, credit card agreements, credit card slips, etc., names and addresses of individuals at Cap1 who approved loans, credit lines, etc.)
NOW, you have delayed the process by months or even years. Also, you will have increased the costs to Cap1.
Consequently, they will be more inclined to bargain with you or just drop the suit.
1st. make sure you are being sued. is there a file number and court date? it should also say you have so many days to send a written answer to the court and the lawyer. if it does send an answer. sorry to say i cant find out how to write one. but it needsw to be a graduated denial. say i deny the debt is mine. if it is i deny it is a valid debt if it is valid i deny the amount im being sued for is the correct amount. it must be typed, signed,dated and notarized with copies to the court and the lawyer who is suing. after filing that the lawyer cannot get a judgement relying on his sworn affidavit. he will have to produce a live witness to testify about the debt.
Call Capital One and tell them you want to negotiate to settle the account. You would be surprised what they will do for you. If you can give them an exact date that you can send a certain amount of money it will help. They will generally give you an amount of time to send the money in. If you call and try to work it out, they will work with you. Much easier than court and they really are not out any money except the original 500.00.
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