Received Summons For Unpaid Credit Card Debt In Delaware County, Pennsylvania

[htiekcmc]

I am looking for some advice regarding a summons that I received from a Sherif yesterday regarding unpaid credit card debt to Household Bank. I live in Pennsylvania. It appears as though a debt buyer has purchased this account and is now sueing me for the money. I tried to make arrangements with Household Bank to stop the interest and I would pay X amount of dollars until the debt was paid off. They would not agree to it. So the only choice I had was to just stop paying them. This led to a charge off and then this company turned around and bought the debt wich led to a civil law suit. Here is why I am in the situation that I am in. My wife was pregnant with our second child. We started to buy things to prepare for the baby with cash and fell behind on the credit card. Once the baby was born with the cost of living (gas prices, food, diapers, etc.) we just could not pay the credit card debt. That is when I made the phone call and they just do not want to work with me. So I stopped paying them. Then of course the debt collectors called and called. They called my work, they called my home and they called relatives. I tried talking to them and the amount that they wanted was way over what I could afford. So this all led up to this summons. Does anyone have any legal advice to how I should handle this? Is there issues that I should bring up at this arbitration that would benefit me. Trust me I am not a dead beat and I would LOVE to pay these people their money and be done with this but it just is not possible to make the electric, mortgage, water bill, car payments, insurance and put food in my childrens mouths is taking us down to the very last penny every week. The biggest problem in the world are these credit card companies. I shred at least 4 to 5 credit card applications a week that come in the mail. They give you this credit line then they keep raising it and raising it until you can not pay it. I do not want anyone to get the wrong impression here I screwed myself, no one did this to me, I defineately did it to myself. I only learned one lesson out of this I will NEVER get another credit card again. Please HELP!

[JLoh1970]

The vast majority of the time Junk Debt Buyers count on the fact that you will not defend the case. 99.9% of the time when they file court cases they are only seeking default judgments and will fold if you posture up as if to defend the case vigorously.

From the info you've given, if it were me, I would try to avoid arbitration at all costs if it's binding. I would file an answer that includes all relevant affirmative defenses. I would file discover and try to make a determination as to how strong a case they have. (Just because you owed Household Bank doesn't mean this JDB has a strong case, they probably don't. Buying bad paper presents a boat load of problems they will have to over come to win a court case, like presenting a true fact based witness before the court.) I would find some type of FDCPA violation and file a counter claim for $1000. (You can usually find something)

Then I would wait for my discovery to come. They will probably object to all of it to which I would file motion to compel. I would then file a motion to dismiss with prejudice just to test the waters. If it isn’t sustained, I would try to work out a settlement on my determination of how strong I felt their case was, etc.

But that's just me. You may want to get a lawyer as I am not one. And please take nothing I’ve said as legal advice. This is just what I would do, if I was in your situation.

[htiekcmc]

Thank you for your advice. This is kind of what I was looking for since I just had no idea on what to do. I appreciate it.

[Exhausted]

When is the last time you paid on this card? What are the statues of limitations on credit card debt in your state?

I have a suggestion to go along with JLoh's...

Once you request discovery they WILL object to every request--unless they have the documents. Depending on the age of this alleged debt (notice the word alleged--remember to use this word) junk debt buyers usually don't have this information.

IMO, after you receive your objections you should write a letter and tell them you demand discovery or you will file a Motion to Compel, if they dont respond with the documents with in your time frame then file the motion attaching the letter as an exhibit to the motion. Courts like to see there was an attempt from you before bogging down the system with motions.

[htiekcmc]

Exhausted maybe you can help me out. I am going to the court house to take care of this next week. Is there specific papers that I need to fill out to do this:
I would file an answer that includes all relevant affirmative defenses. I would file discover.
I would like to just walk into the court house and have everyting ready. The have tons of forms on their website. Do you know what the forms are called that I need to fill out. As you can tell I really do not have a clue about this stuff and I really appreciate all the help that you and others are providing.

THANK YOU

[htiekcmc]

Here is what I received:

Complaint In Civil - Action

#1. Plaintiff is a debt buyer and successor in interest to the original creditor as set forth in the caption of this complaint.

#2 At all times relevant hereto, the defendant (s) was the holder of a credit card, which at the request of the defendant (s) was issued to the defendant (s) by the plaintiff under the terms of which the plaintiff agreed to extend to defendant (s) the use of plaintiff's credit facilities.

#3 Defendant (s) accepted and used the aforesaid credit card so issued and by so doing agreed to perform the terms and conditions prescribed by the plaintiff for the use of said credit card.

#4 The defendant (s) received and accepted goods and merchandise and/or accepted services or cash advances through the use of the credit card issued by the Plaintiff. A true and correct copy of the Statement of Account, if available, is attached hereto as Exhibit "A"

#5 All the credits to which the defendant (s) is entitled have been applied and there remains a balance in the amount of $2,545.10.

#6 Plaintiff has made demand upon the defendant (s) for payment of the balance due of $2,545.10 but the defendant (s) has failed and refused and still refuses to pay the same or any part thereof.

#7 Defendant's last payment on account was made on 8/7/2006 Wherefore, plaintiff claims of the defendant (s) the sum of $2,545.10 plus applicable costs, interest and attorney fees.

Now there was no statement attached to the documents. I made a number of attempts to pay the original credit card company and they would not accept payments. I made an attempt to pay this debt collector and they wanted the payment if full. I could not do that. Please help further. I feel really stupid when it comes to this and I am very nervous and worried about it. THANK YOU!

[Exhausted]

Here is what I received:

Complaint In Civil - Action

#1. Plaintiff is a debt buyer and successor in interest to the original creditor as set forth in the caption of this complaint.

#2 At all times relevant hereto, the defendant (s) was the holder of a credit card, which at the request of the defendant (s) was issued to the defendant (s) by the plaintiff under the terms of which the plaintiff agreed to extend to defendant (s) the use of plaintiff's credit facilities.

#3 Defendant (s) accepted and used the aforesaid credit card so issued and by so doing agreed to perform the terms and conditions prescribed by the plaintiff for the use of said credit card.

#4 The defendant (s) received and accepted goods and merchandise and/or accepted services or cash advances through the use of the credit card issued by the Plaintiff. A true and correct copy of the Statement of Account, if available, is attached hereto as Exhibit "A"

#5 All the credits to which the defendant (s) is entitled have been applied and there remains a balance in the amount of $2,545.10.

#6 Plaintiff has made demand upon the defendant (s) for payment of the balance due of $2,545.10 but the defendant (s) has failed and refused and still refuses to pay the same or any part thereof.

#7 Defendant's last payment on account was made on 8/7/2006 Wherefore, plaintiff claims of the defendant (s) the sum of $2,545.10 plus applicable costs, interest and attorney fees.

Now there was no statement attached to the documents. I made a number of attempts to pay the original credit card company and they would not accept payments. I made an attempt to pay this debt collector and they wanted the payment if full. I could not do that. Please help further. I feel really stupid when it comes to this and I am very nervous and worried about it. THANK YOU!

Okay. First BREATHE! I know it's a very scary thing, but they want to scare you into paying or not showing up to court so they get and easy default judgement. This is a debt buyer who served you, which is a much better thing than an original creditor.

Needed information:

Do you have a copy of your credit report in front of you? If so, what does it show reguarding this account?

Is it true that the last time you made a payment on this card was 8/7/2006?

I can help you more, I am going to look up your states civil procedures. Hang on....

[htiekcmc]

That inormation is correct. I do not have the lastest version of my credit report however I can get the information by tomorrow afternoon but I think it states that the account was charged off now.

Thank you!!!!

[Exhausted]

That inormation is correct. I do not have the lastest version of my credit report however I can get the information by tomorrow afternoon but I think it states that the account was charged off now.

Thank you!!!!

When this alleged account was charged off really doesnt matter. It is usually 180 days after the last payment was made. What you need to know is the last time you made a payment. Credit reports are useless in court anyway, but it may be a good starting point for you. See who is reporting the alleged debt, see how many JDB's have owned this debt over the past year or so.

You said the summons stated: Defendant's last payment on account was made on 8/7/2006. (That's a very quick sell and filing of suit IMO--just over a year).

If this is correct, this is less than 2 years. I dont know of any state that has a Statue of Limitations less than 3 years. Your statute of limitations starts at the last DOLA (Date of last activity--meaning a payment).

If this is correct, we need to discuss some other things b/c at this point answering with the out of statute of limitations is out. Pennsylvania has a 4 year statute.

Have you EVER heard from this Junk Debt Buyer? Have they phoned you, sent you letters?---EDIT you answered that....did you request in writing for debt validation at any point during communications between them? For future reference, dont ever talk to a junk debt buyer. Always communicate in writing and request debt validation within 30 days of first contact from them.


The reason I am asking is b/c if it is true that your last date of activity was in 8/2006, you will probably have to go the route of proof of ownership, and paper trail if you are not willing to settle. You are definitely going to need to file for discovery. It's too late to ask for debt validation. You still can, but discovery is pretty much the same thing and discovery is filed with the court.


Anyway, I sent you a PM---if you didnt see that, please give it a read. It will be very helpful.

[htiekcmc]

Exhausted, I can not begin to tell you how kind you are for helping me out here. I fully understand the discovery part of this, however the it is this part that I do not. I do not know what type of form I need to fill out and bring to the court house to respond to this:

YOU HAVE BEEN SUED IN COURT. IF YOU WISH TO DEFEND AGAINST THE CLAIMS SET FORTH IN THE FOLLOWING PAGES, YOU MUST TAKE ACTION WITHIN TWENTY (20) DAYS AFTER THIS COMPLAINT AND NOTICE ARE SERVED, BY ENTERING A WRITTEN APPEARANCE PERSONALLY OR BY ATTORNEY AND FILING IN WRITING WITH THE COURT YOUR DEFENSES OR OBJECTIONSTO THE CLAIM SET FORTH AGAINST YOU. YOU ARE WARNED THAT IF YOU FAIL TO DO SO THE COURT WITHOUT FURTHER NOTICE FOR ANY MONEY CLAIMED IN THE COMPLAINT OR FOR ANY OTHER CLAIM OR RELIEF REQUESTED BY THE PLAINTIFF. YOU MAY LOSE MONEY OR PORPERTY OR THER RIGHTS IMPORTANT TO YOU.

Question #1 - You obviously read what I wrote before. I do not understand what they mean by a written appearance. Do I just respond in a word document and hand it in or is there a special form to fill out?

Questioh #2 - For some apparent reason I received a letter from an attorney telling me that he would take this case prior to the sheriff coming to my house. Should I just pay for his services. Like I said in the past I really can not afford this in my present situation, so what do I do? Here is a paragraph out of that lawyers letter:

These suits are typically for serveral thousands of dollars, for interest, court costs, and often also for their attorney fees. If you feel that you cna presently get togther 24 cents on the dollar of what they're claiming, I want to propose the following: I would be prepared to represent you for that amount. If no judgment is obtained against you in this suit, I would retain that amount as my fee. If the case were lost and the sheriff was authorized to seize any of your property or bank accounts within a year of the date of this letter, I would refund 14% of that 24% amount, which you could then apply to the claim. In the worst case, since the interest is running at 18.9% a year on average, you are not really worse off in such an arrangement. In the best case, you would have saved 76 cents on the dollar, not have an adverse judgment against you, and probably not have to come to court.

Now if my math is right I would need to pay him $610.82 for filing two pieces of paperwork at the least. I am not saying that I could not come up with that figure but that is what I will loose here because a year will come and go and that will be his fee to do this. I am not against it but if I can do it myself, $610.82 would put alot of food on the table. I am the only money earner in a family of 4, my wife is disabled and I have two children.

Thank you for all of your time.

Thanks so much,
Chris