Being Sued for Credit Card Debt in Arkansas

[jhouse89]

My question involves collection proceedings in the State of: Arkansas

Today I received a notice that suit had been filed against me by a lawyer representing a collection agency who is trying to collect on a credit card that I hadn't paid on since April 2010. It says I have 30 days to file with the court clerk. The amount owed is almost $1500. How should I go about trying to settle with them out of court or should I go to court and try and fight it? I am currently unemployed but I have a job that I should be starting within 4-6 weeks.

[jk]

Is there some reason you believe you might prevail in court?



You can attempt to negotiate if you choose. They may require you stipulate to (accept) a judgment in exchange for and reduction in what is owed. You will only know if you ask.



If you do not respond to the complaint properly (in writing and as the summons directs), they will be awarded a default judgment.

[jhouse89]

Well they didn't include any proof that they even owned the account or any validation of the debt. All it said was that I ran up $1400 on US Bank credit card in 2010 and failed to make payments. They provided no account numbers or anything like that. It is from Pinnacle Financial Capital LLC, anyone ever heard anything about them?

[jk]

they don't have to provide proof of ownership until they show up in court and then, only if you actually demand it.

did you demand a validation from the collection agency way back when when they first attempted to collect on the debt?



so, just for clarity sake; who is suing you?

[jhouse89]

I never received any notice of the attempt to collect the debt, this is the first I've seen anything about it so I haven't had a chance to request debt validation. Its on a US Bank credit card account. It shows on my credit report that the account has been closed and charged off. I'm assuming Pinnacle Financial Captial LLC bought the account, they are the Plantiff and are being represented by some lawyer from Little Rock.

[jk]

so, did you have this account? Did you fail to pay it?
If so, I suspect you will end up paying it now.

[flyingron]

Chargeoff means squat to YOU. It's an accounting thing internal to the credit card company.
The "attempt" to collect the debt is sending you the bill that you already ignored ages ago.
Either you settle now or they will go to court and lose and they'll get a judgement lodged against you and may take whatever steps are allowed there to collect on that judgement.

[jhouse89]

I do acknowledge that the debt is mine and yes I did not have the means to pay it. I also have about $3,500 more in about 3 other cards that I haven't paid on for the same period of time. My financial situation has been dreary at best over the past few years but as I stated, I have a new job that I should be starting in about 4 weeks. Is a debt management plan still an option at this point?

[jk]

only if the creditor is crazy.

[jhouse89]

What do you think would be a reasonable offer to make them as far as settling for a one time lump payment?