mrsteve

iTrader: (1)

Sorry this is kind of long but I've never dealt with anything like this before...

Much to my surprise I received a court notice, or "warrant in debt" regarding a past debt I didn't even know existed. I checked my credit report (something I haven't done in years ) and discovered the debt in question appears to extend from credit card I opened while in college. I've never received any other notice from the credit card company, no bills, statements, nothing since I stopped using the card.

This notice lists the plaintiff as LVNV Funding, LLC. Which upon a quick Google search I can't find anything good about this outfit. They are on my credit report as a collections agency!

The credit card shows up as a Chase account although the LVNV Funding, LLC note on my report and on the court notice references Washington Mutual. I have a Chase account currently and it doesn't reference the account in question when I log in online.

My credit report lists the account as opened in 4/2004 and I have no record in my bank statements of making any payments to a Washington Mutual account after 4/2006. The account on my credit report states "Transferred, closed, balance written off."

The credit report lists LVNV Funding with an account opened on 12/2007 matching the claimed balance of the Washington Mutual account.

Now, based on my research regarding LVNV Funding, they buy up junk debt and attempt to collect it. Many times after the statue of limitations has expired. I lived in Maryland when I opened the account and currently live in Virginia. Maryland has a 4 year limit; Virginia 3 years.

What do I do? I'm thinking I need to contact an attorney I don't want to pay some random company this money, especially if the original creditor wrote it off many years ago.

spdy0001

Chase bought WaMu so that might explain some of the confusion.

I would certainly contact someone if I were you and at least see if they think you need a lawyer.

doopstr

What happens is the debt is sold to the collection agency so you effectively owe the collection agency money. You may be able to negotiate the debt lower. It may be a good idea to talk to a lawyer but most likely its going to stay on your credit report for 7 years even if you pay it off. It will indicate on the report that you paid it though.

If it's a legitimate debt and the collection agency can prove they bought the debt then I dunno what you can really do but pay them.

mrsteve

iTrader: (1)

What's interesting is that in Virginia if a debt isn't collected in 3 years it can no longer be collected. I've skimmed through my bank statements and the last payment I made to Washington Mutual was in the beginning of 2006. So it's been 3 years. I came across this online:

Some people just go ahead and make payment arrangements or pay the bill in full and this is something you should not do. I know you should pay all bills, which are due, but with this company, it just makes it appear on paper that you have gotten this debt. It is called re-aging a debt and then it is legally collectable. NEVER make payment arrangements or a settlement to a debt collection agency unless you speak with a well-informed lawyer who knows about credit card debt.

My original debt was to Sears and they wrote it off as a business debt, so why should I pay this company LVNV funding money, which is entitled and owed to sears? That is like paying my outdated electric bill to a newspaper company whose newspaper I never read, it just makes no sense to me either.

When I received a letter from the district justice locally advising me that this company was in fact suing me in court, I freaked out. When I had regained my composure, I then educated my self as I best I could. I did an internet search on this company and I found out a whole bunch of stuff on this company's tactics as well as learning quite a bit about consumer debt.

The statue of Limitations on collecting Credit Card debt in Pennsylvania is only 6 years after the date that the last payment occurred. In my case, it was February of 1995. The statue of Limitations on this credit card ran out on February of 2000. LVNV funding was trying to collect on as debt that was out of date by at least 7 years when I was scheduled for court in early May of 2007.

Therefore, through the month of April I educated my self on this company and send them letters asking them to verify that this was in fact their legal debt to collect. They never responded to my letters. With a few days of that court date, I called the local court and got it rescheduled for a later date as I was still hoping to hear from this company.

http://www.associatedcontent.com/art...g2.html?cat=17

doopstr

That guy's story is interesting but I'd like to know how he plans to get the debt off of his report.

When I was getting my first mortgage I had a debt collector on my credit report from an old phone bill ($150). I was told by the mortgage lender to pay it off and get a letter from the collector stating that it was paid or they would not give me my mortgage at closing. Pain in the ass.

mrsteve

iTrader: (1)

This is a nightmare. It isn't even that much money but I don't want to just fork over my money if this isn't legit.

Will Y.

The debt can't be collected unless a lawsuit was filed within the statute of limitations.
Three items to note:
1) Statutes of limitation can be waivable in writing, so one task is to check the paperwork regarding the account to see if you ever signed an extension or waiver of the statute (OK, most people wouldn't have the paperwork still, esp. for a dead account).
2) Even though a valid debt is not collectible, it can still be reported as a default or write-off on your credit for the next few years.
3) If it's not a valid prior debt, the purported creditor should be advised to remove it from a consumer's credit report to avoid consequences under the Fair Credit Reporting Act, etc.

mrsteve

iTrader: (1)

Can the lawsuit be filed by a third party? I never had an account with this LVNV Funding outfit nor have I ever had any communication with them.

Will Y.

A third party can sue on a default as long as: a) the debt is assignable and b) assigned to the third party.

First thing-- contact the third party and ask for details/paperwork regarding the debt and assignment of it. If it can't show any of that, it is not a valid creditor.

moeronn

How much are we talking? < $100?

I know companies like this are hoping people pay them without questioning it, regardless of it's valid or not. Still, even if it isn't completely legally valid, make sure you don't spend more money and energy fighting it than it is worth. Hopefully it doesn't come to spending any money.

mrsteve

iTrader: (1)

It's like $1,500

moeronn

Okay, that is worth doing more research, contacting the collections agency to find out what info they have and possibly calling a lawyer.

Will Y.

Fixored...

mrsteve

iTrader: (1)

I've never needed an lawyer before... should I just start Goggling "debt attorney" ??

Silver™

I hear Jared is looking for new clients

Will Y.

Got any friends that are lawyers, or who can give you a referral?

Otherwise, call a state-accredited credit counseling agency or the state bar for a referral; the state AG's office or department for consumer affairs may offer other referral sources, if not direct referrals, to decent lawyers.

Then look for a "consumer attorney" or the like on Google; the "debt collection attorney" or "debt attorney" search will more likely direct you to attorneys working to collect the debt.

Anachostic

http://clarkhoward.com/liveweb/shown...8/07/07/13747/

You have to go to court and show the debt is past the statute of limitations. If you don't, the debt becomes current again and you're fucked. It's a scam. They know the debt is expired, but by illegally suing you, they have the chance you won't show up and you'll lose by default.

mrsteve

iTrader: (1)

Thanks for the help so far guys.

One more question maybe you could help with... I opened the account while I lived in Maryland. I moved to Virginia about a year ago. Which state's laws come into play regarding statue of limitations?

moeronn

Not positive, but most likely it will be the state the account was opened in.

mrsteve

iTrader: (1)

I just checked. It's actually the state I currently live in. Since it's my county court local laws apply.

I need to check my credit report again... if the date of last activity is more than 3 years ago (statute of limitations in VA) I'm off the hook.

What a nightmare. This will be a lesson learned. And what a crooked company doing this type of shit.

The Dougler

iTrader: (1)

Asking them to show you documentation that proves you owe them anything. Chances are, with all the buying up of the debt and shifting around parts of the paper trail are missing and you can tell them to go pound sand.

wackjum

Will Y is a civil attorney, and therefore the best source of information. But you should take a look at the Fair Debt Collection and Practices Act to become familiar with the process that all debt collectors must at least minimally abide by. State law can give you more protection, but cannot give you less because Federal law trumps (there's an exception built into the FDCPA).

Link to the FDCPA: http://www.ftc.gov/bcp/edu/pubs/cons...edit/cre27.pdf

johnnysquire

Dougler and wackjum are right on.

1. Don't get mad at the collection company - it can be a perfectly legit business, and one you're happy to have around if you're in business and would rather sell your bad debts than sit on them. Some collectors are scummy and will try to trick people into thinking they're lawyers, or that they have more power than they really do, but if you know the FDCPA, you'll see through it.

2. Under the FDCPA the collector has to prove the debt to you (and leave you alone) if you ask correctly. If the collections company is legit, they'll be able to provide the documentation.

3. I ran into a similar surpise debt once, on a financed gym membership I paid off early. They messed up the records and put it as a bad debt that was sold off to a collections company years later. It wasn't fun, but I proved the early payoff to the collector and they went away.

jupitersolo

Many people who are being foreclosed on are doing this. I has given some people up to a yr before being foreclosed on, or they're able to come up with the money.