Page 1 of 2 12 LastLast
Results 1 to 10 of 15
  1. #1
    Join Date
    Nov 2006
    Posts
    22

    Default Default Judgements against Credit Card Debt

    Hi,

    I am a 23 year old college student. A few years ago I got approved for 4 credit cards. I defaulted on them about 2-3 years ago after I lost my job. After that things went downhill academically, financially, and mentally. I am back in school now, and I have been doing good in my classes. I was served by three credit card company with a lawsuit. I showed up for one of them, made an agreement with the attorney and never paid him. I wasnt thinking. I got a judgement against me for around ~$4,900 dollars.

    Two other companies served me with lawsuits. I never showed up and I got two more judgements against me. One for ~$2,800 dollars, and the other one for ~$3,900 dollars. I got this third credit card company that hasnt taken me to court, and I have contacted them. They said my 2,000 credit card had accumilated interest and now its ~$7,500 dollars. They said they were willing to settle now for $2,000 dollars. I dont have this kind of cash now. I asked them now for 4 months. I am still dealing with them for a longer time.

    Now for my defaulted credit cards I realized, I made a serious error in judgement. I told them I can make monthly payments for it and they agreed. I tried to ask them to come down in the amount, they said they would with full payment. I dont have full payment. I feel like everything is hopeless. I dont own any property but I am self-employed with this bartending company and seldomly work. I'm overwhelmed so much that I can't concentrate in my studies. I know school is important, and I need to figure out what to do.
    I have a few questions that have been bothering me immensely, so please bear with me.
    Its been past >thirty days since my judgements.
    Are these judgements reported on my credit report? If so, how negatively does it affect my credit? When does my credit report get removed from these judgements and is clean again? Am i able to do anything myself to have these removed earlier?
    Will my bad credit report affect me in getting a job after I graduate?
    After I have fully paid the creditors in full, what should I do so that no further action is taken against me.
    What are my long term consquences? Should I hire an attorney and have them help me?
    Thanks.

  2. #2
    Join Date
    Oct 2006
    Location
    THE DIRTY SOUTH!!
    Posts
    52

    Default Re: Default Judgements against Credit Card Debt

    Quote Quoting ThatGuy
    View Post
    Hi,

    I am a 23 year old college student. A few years ago I got approved for 4 credit cards. I defaulted on them about 2-3 years ago after I lost my job. After that things went downhill academically, financially, and mentally. I am back in school now, and I have been doing good in my classes. I was served by three credit card company with a lawsuit. I showed up for one of them, made an agreement with the attorney and never paid him. I wasnt thinking. I got a judgement against me for around ~$4,900 dollars.

    Two other companies served me with lawsuits. I never showed up and I got two more judgements against me. One for ~$2,800 dollars, and the other one for ~$3,900 dollars. I got this third credit card company that hasnt taken me to court, and I have contacted them. They said my 2,000 credit card had accumilated interest and now its ~$7,500 dollars. They said they were willing to settle now for $2,000 dollars. I dont have this kind of cash now. I asked them now for 4 months. I am still dealing with them for a longer time.

    Now for my defaulted credit cards I realized, I made a serious error in judgement. I told them I can make monthly payments for it and they agreed. I tried to ask them to come down in the amount, they said they would with full payment. I dont have full payment. I feel like everything is hopeless. I dont own any property but I am self-employed with this bartending company and seldomly work. I'm overwhelmed so much that I can't concentrate in my studies. I know school is important, and I need to figure out what to do.
    I have a few questions that have been bothering me immensely, so please bear with me.
    Its been past >thirty days since my judgements.
    Are these judgements reported on my credit report? If so, how negatively does it affect my credit? When does my credit report get removed from these judgements and is clean again? Am i able to do anything myself to have these removed earlier?
    Will my bad credit report affect me in getting a job after I graduate?
    After I have fully paid the creditors in full, what should I do so that no further action is taken against me.
    What are my long term consquences? Should I hire an attorney and have them help me?
    Thanks.
    Here's a good link with information about judgments:

    http://www.carreonandassociates.com/...qjudgments.htm

    As for any other credit card debt, send the collection agency a request for validation of the debt (check out my thread http://www.expertlaw.com/forums/showthread.php?t=16591). If you are in court with a collection agency, go to the National Associate of Consumer Advocates website (http://www.naca.net) and find an attorney to help you in your area. I got help for $30 and won a $5,000 settlement against the creditor and had the alledged $7,000 debt squashed.

    If you get any more collection letters, be sure to demand that the collection agency VALIDATE the debt. Most CA's have no supporting evidence to really prove that you owe the originally creditor. They are junk debt buyers and all they usually have is a microfiche file of names, addresses, and some arbitrary amount. They then add on interest and attorney fees and all sorts of crap. A debt that started out as a $500-limit college credit card suddenly becomes a debt of over $7,000!! That's how they get you!

    These credit card companies go on campuses, offering t-shirts and coffee mugs in return for filling out a credit application. You think you are slick because you know you don't have a job so the app will be rejected - but you will get a free gift! But, 30 days later, there's a credit card in your mailbox. At first, you are only going to use it to buy that book you really needed for class. Then there's this nice outfit at the mall and you want to look tight at the campus dance. Dinner at Chili's - your friends give you cash towards the bill and you put the check on the credit card. BUT you don't send the cash to the credit card company because Spring Break is next week and you need some dough for that. When the bill comes, you can scrap up the mininum payment of $27 but the finance charges are $19! The next month you got the bill but lost it and forgot to pay it. The third month you now owe a $29 late fee and, since you didn't pay last month, the new finance charges and late fee have put you over your limit so you get hit with another $29! Pretty soon, you just say "F**k it!" and throw all the successive bills in the trash. Plus, it's time to go home to The Parents' for the summer and the bills ain't coming there!! For a long time nothing comes.....until you have graduated and have a good paying job. Then some company that you have never heard of sends you a collection letter saying that you owe $1,700. You don't know what they are talking about because you've never incurred that much debt outside of your car note, so you throw that letter in the trash. Another year goes by and here comes another collection letter from another company saying that you now owe $2,999! This time you look a little closer and recognize the account number as the credit card that you had in college. Mmmm....that was the same number from the FIRST letter. You call the CA and they say that they will take $1,000, which you don't have. So you don't answer the phone for several months if the Caller ID says "Unknown". Pretty soon the CA goes away. But next year, just like herpes, the debt comes back in the form of a letter from a law office claiming to represent the collection agency. WHATEVER!! Two months pass and a Sheriff's Deputy is at the door - with a court summons! With attorneys fees and interest, you now owe $4,500 and growing! You ignore the summons or you show up in court without counsel, enter into a Consent Decree with the law office, where the creditor agrees to remove about $1,500 and take payments of $50 a month. You do OK for about 6 months and then your ride needs new tires, so you miss a payment to the law office. Next thing you know, you've got a judgment on your credit report and in the public records.

    I know that you have gotten yourself into a mess but let's hope that your thread will help other young people. Please check out the NACA website, read my thread, and do all the research that you can on the internet. Start with http://www.fair-debt-collection.com/index.html. That is where I found the information that I needed to get NCO off my back. Since then, I have helped a lot of college kids clean up their credit reports and raise their credit scores. (Don't pay one of those companies which claim that it will clean up your credit report for you - you can do it yourself.) Be sure to pay close attention to the information on the Statute of Limitations (you didn't say what state you live in). If the SOL has run in this recent last court case, that is your absolute defense against this debt. It is uncollectible but you have to raise that point in your Answer or to the Judge at your court appearance. How do you prove the SOL? You have to find an old credit report which shows the original creditor. This new CA has probably put itself as the creditor on your report and is listing the date that it PURCHASED the debt and the date the account was opened. But that is incorrect and illegal. Find ANYTHING from the original creditor like billing statements, collection letters, expired credit cards - ANYTHING that will date the debt for you.

    For example, say you live in Georgia where the SOL on open accounts (credit cards) is 4 years from the date of first delinquency. You opened the account in January 2002. You paid the February bill, due on February 19, 2002 and didn't pay March's bill. Thirty days after the bill was due, on April 21st, is the date of first delinquency. So the SOL has expired on April 21, 2006. BUT - if you got a letter from the credit card company in December 2002, promising to forego the past due payments as long as you pay the next three payments on time, and you sent in a payment, you started the SOL running again and it won't start again until you default again. So if you made that payment in December 2002 but didn't make another, the SOL would expire in February 2007 - TECHNICALLY......

    ....BUT.....The OC was not suppose to allow you to re-age that debt so it probably didn't report that first date of delinquency. However, it did report the "Last Date of Activity" as the December 2002 payment. So that would be your point of reference for the SOL - it would expire in December 2006.

    You will notice that you will get a sudden influx of old bills from nowhere. That means that the junk debt buyer has some evidence, althought not necessarily accurate, that the SOL is about th expire. They must file a suit in court before that date to keep you from using it as your defense. But you may have something in your files that proves otherwise.

    In a case against NCO that I helped another former college student with, on her most recent Equifax report, NCO showed the "Date of Last Activity" as October 2004 but that was the month that NCO bought the debt from Citibank. We found an old credit report showing the debt, a GTE Verizon Visa originally issued by Associates Bank in May 1999, as being 90 days late as of June 2001. Another credit report from 2003 showed the debt, now listed as "Citibank Visa" but in "Charged Off". (I discovered that Associates had been acquired by CitiGroup in 2000.) Not only had the Statute of Limitations expired in February 2005, but I was pretty sure that NCO did not have any of the original documents like a copy of the credit card agreement, a letter of assignment from either Associates or Citibank, or a payment history. The former student also had an old billing statement dated April 2001, showing a Late Payment charge and a Past Due amount. At the very least, that showed that the bill was delinquent in April 2001. This young lady was a pack-rat and had just about every piece of paper that had ever been sent to her. She even had one of her GTE Verizon credit card with its issue date on it! She was able to file an answer to the summons pro se (many court provide litigants who decide to represent themselves with an easy to use form), stating that the SOL had run on the debt. She still got a court date and she showed up with several old credit reports, the past due statement, and a copy of the Georgia state code on credit and statutes of limitation. Everything was in color-coded folders, with a set for the Judge. (Of course, the judge knows the law, but you don't want to provide everything that she or he will need at a glance - it makes you look prepared. Many collection company attorneys only do that job because they can't do much else so they are usually overworked and unprepared.) The case was dismissed because the debt was uncollectable and the young lady was congratulated by the judge for her presentation.

    But right now, YOU need to address this case that is in court or you will have another judgment. Do not talk to the collection agency until you have something substantive to say. If you can get the money to settle, then do so ONLY if they agree to remove the adverse credit information. And don't let them say that they can't do it - THEY PUT IT THERE WITH JACKED UP, INCOMPLETE AND INACCURATE INFORMATION, SO THEY CAN REMOVE IT. If their offer is $2,000 on an alledged $7,500 debt, they will probably accept $750 - they probably paid less than $500 for it! If you don't have the money, then try to fight it first. You can always enter into a Consent Decree with the agency at the 11th hour. But make sure that this CA has the right to collect this debt. You don't want to pay it and some other company hits you up six months from now. Do what you can do on your own first but, if it starts getting scary or too complicated, get a lawyer!!! Young people don't even blink when they lay out $200 for some athletic shoes but act like they are going to die if they have to pay an attorney!! A few "Benjies" paid out for those debts which are now judgments would have saved you a lot of grief in the long run.

    And take care of any additional collection letters by requesting that the CA validate the debt. Find any old credit reports to see if those debts are beyond the Statute of Limitatons.

    Nothing that I have said here addresses how long debts can stay on your credit report. But, while the criteria for credit reporting is different than it is for the statute of limitations, you will still need the same documents to get the correct dates listed on your credit report. If a creditor has reaged a debt that is 8 years old, it will be showing on your credit report and it shouldn't be. And, remember, that each state has different rules but the federal law can be found in the Fair Debt Collection Practices Act - FDCPA (http://www.ftc.gov/os/statutes/fdcpa/fdcpact.htm) and the Fair Credit Reporting Act - FCRA (http://www.ftc.gov/os/statutes/fcra.htm), which you can study yourself.

    Good Luck!

  3. #3
    Join Date
    Oct 2005
    Location
    Massachusetts
    Posts
    755

    Default Re: Default Judgements against Credit Card Debt

    The bad news, your credit is probably shot to hell.
    THe good news is, you're still young, and have plenty of time to fix things.
    Now, I didn't read the 1st reply from tinykim, so If I say some things she said, I apologize.
    Step 1, get a copy of your credit report. Google "free credit report"
    Learn about the 7 year clock. After 7 years, things drop off your report. The clock restarts when there is activity on the account. Meaning, if after 6 years, you pay $10 towards a debt, the 7 year clock starts all over again. Don't screw yourself.
    My girlfriend filed for bankruptcy 12 years ago.
    This year, her credit score was in the low 800's ( which is nearly perfect )
    SHe got us a mortgage with the best interest avaiable.
    She went into Home Depot last week, and applied for a home depot card, and was approved for a $10,000 limit card,lol
    Theres proof, that if you work hard to pay your bills on time, be credit conscious, and take control, you too can hold the world in the palm of your hands.
    Don't lose sleep over what happenned in the past. Whats done is done, you can't change that. What you can do now, is prepare for the future.

  4. #4
    Join Date
    Mar 2005
    Location
    Michigan
    Posts
    28,636

    Default Re: Default Judgements against Credit Card Debt

    The official site of the three major credit bureaus for obtaining a free credit report is AnnualCreditReport.com. They will try to sell you additional products, such as your credit score, but you don't have to pay or register for anything in order to get a free credit report. (Or, if you prefer, three of them - one from each bureau.)

  5. #5
    Join Date
    Oct 2006
    Location
    THE DIRTY SOUTH!!
    Posts
    52

    Default Re: Default Judgements against Credit Card Debt

    Quote Quoting aaron
    View Post
    The official site of the three major credit reporting agencys (CRAs) for obtaining a free credit report is AnnualCreditReport.com. They will try to sell you additional products, such as your credit score, but you don't have to pay or register for anything in order to get a free credit report. (Or, if you prefer, three of them - one from each bureau.)
    Or go to www.annualcreditreport.com, where you can order all three at once. The Fair and Accurate Credit Transactions Act of 2003 (FACTA) makes it possible for everyone to get at least one FREE credit report per year from each agency. And be sure to keep the copies for at least 7 years in case you need to have the CRAs remove inaccurate information in later years. Once you get your credit right again, you could be the target of identity theft so you need to be able to track your own credit. The CRAs don't alway report the correct info.

    And, Aaron is right. You don't need all of that crap that they try to sell you. They are just trying to make up for the new law that now requires them to give you your reports free of charge. You can read up on FACTA at http://www.ftc.gov/os/statutes/fcrajump.htm.

    Dad2 is right also (no offense taken, Dad2 ) - adverse credit will fall off in time but, like I also said, ONE payment will start the statute of limitations running again. Read the FCRPA very closely and you will be able to learn exactly what the requirements are. Just remember that the 7 year CRA reporting time is different from the statute of limitations. The expiration of the latter only means that the debt can't be collected but it can still be reported for 7 years. A unpaid judgment will drop off of your credit report after 10 years but, if you pay it off in the 9th year, it will be reported for another 7 years after the date it was paid. Some things are best left alone!! But even if its not being reported, creditors can refile the judgment every 10 years until you pay. Small credit card companies don't usually do that, though. It's just too much trouble when they can just write it off as a loss.

    I think we are ALL right here in the information that we are giving but, it is best to check with a good attorney first. A consultation will not make or break you, but messed up credit sure will!!

  6. #6
    Join Date
    Nov 2006
    Posts
    22

    Default Re: Default Judgements against Credit Card Debt

    Civil action: 3 years from the date it accrues, unless:

    Breach of contract under any sale of goods and services under the UCC: 4 years after the cause of action, even if the aggrieved party is unaware of the breach.

    Promissory notes or instruments under seal, bonds, judgments, recognizance, contracts under seal, or other specialties: 12 years.

    Financing statement: 12 years, unless a continuation statement is filed by a secured party six (6) months prior to end of twelve (12) year period. (Maryland, Commercial Law article Sec. 2-725; Courts & Judicial Proceedings Article Sec. 5-101-02, 9-403).

    NOTE: The 3 year statute of limitations begins again if creditors can document that a debtor has reaffirmed a debt by a good faith basis by a written agreement, orally, or by payment.

  7. #7
    Join Date
    Nov 2006
    Posts
    22

    Default Re: Default Judgements against Credit Card Debt

    So I realized that the 3 year period has expired for 3 of my credit cards!! What is an oral agreement? I agreed to pay them payments over the phone. 2 of them have read my miranda rights (the collection one) before we talked. For the two recent judgements that happened came AFTER the 3 year statue of limitations. I made an oral agreement to pay them on the phone, did that re-affirm my debt, they must have recoreded it right?

  8. #8
    Join Date
    Nov 2006
    Posts
    22

    Default Re: Default Judgements against Credit Card Debt

    now for 1 of the credit cards I didnt reply to the judgement court letter and its been past 30 days. Am i still able to get the case re-opened?

  9. #9
    Join Date
    Oct 2006
    Location
    THE DIRTY SOUTH!!
    Posts
    52

    Default Re: Default Judgements against Credit Card Debt

    Quote Quoting ThatGuy
    View Post
    now for 1 of the credit cards I didnt reply to the judgement court letter and its been past 30 days. Am i still able to get the case re-opened?

    Only if you can prove that you weren't served properly. And it sounds like you have.

    When were the judgments filed? Did you even enter a Consent Decree to pay the debts to keep them from going to judgments and then failed to pay as agreed?

    You can always work out something on those judgments. I had one and I called the law office, set up payment arrangements AGAIN, and then I eventually settled the debt for less than half of the remaining balance, with the stipulation that the judgment would be removed. AND IT WAS!

  10. #10
    Join Date
    Oct 2006
    Location
    THE DIRTY SOUTH!!
    Posts
    52

    Default Re: Default Judgements against Credit Card Debt

    Quote Quoting ThatGuy
    View Post
    So I realized that the 3 year period has expired for 3 of my credit cards!! What is an oral agreement? I agreed to pay them payments over the phone. 2 of them have read my miranda rights (the collection one) before we talked. For the two recent judgements that happened came AFTER the 3 year statue of limitations. I made an oral agreement to pay them on the phone, did that re-affirm my debt, they must have recoreded it right?
    They may not have recorded it but the only way that you find that out was through Discovery, where your attorney demands to see whatever evidence the creditor has against you. As for the judgments after the SOL, you were supposed to raise that defense in court. It is the absolute defense in the case - THE DEBT IS NOT COLLECTIBLE! But you failed to respond or show up, so the court assumes that the creditor is correct in all things and issued a DEFAULT judgment.

    Trust me, in the long run, the creditor just want their money. And collection agencies are held to a higher standard than the original creditor. But you can work with them because they paid little or nothing for the debt, pennies on the dollar. That's why one of your creditors said that it would take two grand on a $7,500 debt! It would probably take $750, if you had the ready cash, AND remove the judgment from your credit report.

    You can TALK about debt without promising anything. You know the "What if..." method..... "What if a person was to offer you $700 - do you think that is something that you might consider?"

    Did you send the request for validation on that last debt which has not gone to court yet? I know that you have admitted HERE that you owe the debt but don't admit it to the CA until you see some evidence that they have the right to collect that money from you. It's important to make sure that you are paying the right company. For example.....Say I came to you and said that Bob gave me the right to collect that $20 that you borrowed from him last week. Now you don't know me from Adam (or Eve, in this case!). You give me the $20 and the following week, Bob comes looking for his cash. He's not wanting to hear how you paid some other person based on a verbal claim to the right to collect. Feel me?

    If you don't start a paper trail and stay on top of this, you will end up screwed. Like one poster said, you are still young and you have time to pull out of this. But you don't want to have wait until you are 33 to buy a house! The financial world has gotten everyone by the balls with the interest rates and credit scores and all of that crap. But, unless you have a bunch of cash to pay for your house and car, you have to pay their game.

    1. Sponsored Links
       

Page 1 of 2 12 LastLast

Similar Threads

  1. Default Judgments: Default Judgement for Credit Card Debt
    By 1996VWgti in forum Judgments
    Replies: 1
    Last Post: 08-13-2009, 08:58 AM
  2. Default Judgments: Default Judgment On Credit Card
    By RJM1234 in forum Judgments
    Replies: 4
    Last Post: 04-28-2008, 07:20 PM
  3. Paying Back Credit Card Judgements
    By blb2397 in forum Judgments
    Replies: 1
    Last Post: 02-13-2008, 11:42 AM
  4. Debt Collectors: Making Payments To Avoid Default Of Credit Card Debt
    By tanjewels in forum Credit Card Debt
    Replies: 2
    Last Post: 07-11-2007, 06:23 AM
  5. Debt Collectors: Default on Credit Card Debt in Florida
    By ninadelsol in forum Credit Card Debt
    Replies: 1
    Last Post: 02-02-2006, 04:55 PM

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
 
Forum Sponsor
Find A Lawyer - Free, confidential referrals.
Legal Forms - Buy easy-to-use legal forms.




Untitled Document