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Collection Agency is Making a Suspicious Lawsuit Threat

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  • 09-26-2013, 01:10 PM
    jdmaley
    Collection Agency is Making a Suspicious Lawsuit Threat
    My question involves collection proceedings in the State of: Pennsylvania.

    I received a voicemail which explained that I had a line of credit (Visa card) through HBSC that they have been unable to collect on. Therefore, the voicemail said I was being sued. For some reason, the voicemail was left with my wife and not me. She promptly called back and the gentleman talked with her (which surprised me; usually they refuse to discuss debt with anyone but the one who owes it, don't they?), and he explained that I would be served papers on Monday, would be required to appear in court, that my wages would be garnished, and other untold horrors would be visited upon me. He also very quickly said they were willing to settle out of court and provided the terms.

    I did some research. This guy said the final payment on this debt was received in December of 2008. From what I could find, the statute of limitations on credit card debt in PA is 4 years. That would put the first missed payment in January of 2009. My first question is: does the statute go by month? That is, did it run out in January of 2013? Or is it valid until the end of the year? Or is this something that is open to interpretation?

    I've got no issues paying my debts. Been working at that for years. But after doing some research, I'm skeptical about a company that threatens such doom and gloom before serving your papers. From what I've seen, if a legitimate creditor is going to sue you, they don't come after you 4 days before they plan to serve you papers and warn you that it's coming. I also thought I had the right to request verification of the debt. Proof that I owe it. If they're warning me that on Monday they're going to serve me papers, that doesn't allow me time to verify it's even MY debt.

    Very skeptical, but obviously I want to honor my agreements. Not sure the best course of action. I guess knowing if the statute has indeed run out would be a first step. I'm unclear if the debt is considered run out as of January 2013 or if it's valid until the end of that year.
  • 09-26-2013, 02:48 PM
    Mr. Knowitall
    Re: Suspicious Lawsuit Threat
    If the last charge and last payment were made no later than Dec. 2008, the cause of action should have accrued no later than when the next payment was missed in Jan., 2009. The statute of limitations runs from the date the cause of action accrues.

    If you were going to be served on Monday, the lawsuit would already be in the hands of a process server. I sense the odor of bovine execrement. What did you find when you searched for the collection firm, or searched the phone number from which they called, using your favorite search engine?
  • 09-26-2013, 03:03 PM
    Dogmatique
    Re: Suspicious Lawsuit Threat
    And even better? PA does NOT allow "regular" creditors (credit cards etc.,) from garnishing your wages.

    (this is a very handy run-down: http://www.gregartim.com/garnishment...s_be_Garnished )

    - - - Updated - - -

    ETA: They CAN however obtain a court order to levy your bank account
  • 09-27-2013, 12:35 AM
    billy the kid
    Re: Suspicious Lawsuit Threat
    Quote:

    Quoting Mr. Knowitall
    View Post
    If the last charge and last payment were made no later than Dec. 2008, the cause of action should have accrued no later than when the next payment was missed in Jan., 2009. The statute of limitations runs from the date the cause of action accrues.

    If you were going to be served on Monday, the lawsuit would already be in the hands of a process server. I sense the odor of bovine execrement. What did you find when you searched for the collection firm, or searched the phone number from which they called, using your favorite search engine?

    and another good point to make ... do not pay 1 dime of your bill -- do so and the statue of limitations re-starts from your LAST payment
  • 09-30-2013, 09:58 AM
    jdmaley
    Re: Suspicious Lawsuit Threat
    Thank you all for the advice.

    Mr. Knowitall, the company has not outright revealed its name, though in the voicemail they left, they did say they were a "claimant's office". I am going to call them today and get as much information as I can about the company. And based on what you're saying, then, the statute would have expired in December/January and not at the end of this calendar year?

    I'm getting some conflicting reports on the PA statute for CC debt. By and large I've found most resources to indicate it's four years. Found a few that have said six, but it seems like maybe those are outdated...

    Dogmatique, that guide is fantastic, thank you. I don't have a solitary bank account, it's joined with my wife, and my checks don't get directly deposited. I control when they go into a bank account.

    Billy the kid, noted, I won't be paying them a cent.

    Do I have the right to ask them who will be serving me the papers? Local sheriff, process server, etc? If the statute of limitations has expired can they even threaten a lawsuit?

    I'll investigate the company a little more today. Thanks again.

    - - - Updated - - -

    I called them. I got the general voicemail box. It said, "You have reached the claims office." No company name. I'll try back when they're open. Must be nice to work 9-5...

    - - - Updated - - -

    In further developments, I finally got a chance to hear the voicemail for myself. The woman who called identified herself as the "legal courier for the county" and didn't appear to be connected to the creditor. I've tried looking her up, but with no luck. Not sure what to make of that. Sounds like the lawsuit is legit. She did say she'd be by on Monday "unless she hears otherwise from the claimant" and then provided the number.

    Thing is, if the SOL has expired, the odds of them successfully pursuing this would be pretty minimal, wouldn't they? I'm debating whether I should let this play out (found really good local attourneys who specialize in this, and who won't charge me if the lawsuit was filed after the SOL expired; they'll go after the collectors instead), or just pay the bill. They offered a few payment plans that aren't unreasonable. But my concern there, as has been expressed, that if I make a payment, the SOL is renewed and they can really sue.

    - - - Updated - - -

    Got a second voicemail from this county courier, who keeps saying she'll be there unless she receives a stop order from the claimant. And I have to call the claimant directly in order reschedule the delivery. I contacted that law office and he believes I'm being utterly scammed and that no one will even show up, despite their claim of being the county legal courier. So we'll see. I'm sure not giving these people any money. They want a law suit, they'll get one.

    - - - Updated - - -

    I received another voicemail this morning from this woman "from the county" who again admonished me to contact them directly and claims she'll be at my place of residence and/or employment between 3 and 5 today. She's leaving her name but not a direct contact number for her. And I'm not a fan of the fact that she's saying she will be at my place of residence and/or employment. To me, it seems like she's calling to goad me into calling this company and speak with them - so they can pile on the "threats" like having my wages or bank accounts garnished if I lose in court. I've been speaking with a lawyer who specializes in this, and he's often successful in getting the case thrown out before it even gets to that point.

    I guess I'm not familiar with the folks who serve these documents, but it seems impractical to try and go through a third party to have them scheduled for service. Is that normal? My impression has always been that the sheriff or constable delivers the docs, or they're sent via certified mail. She's making it sound like I'll be given papers and have to immediately respond on the spot, which doesn't sound right at all.
  • 09-30-2013, 02:40 PM
    LawResearcherMissy
    Re: Suspicious Lawsuit Threat
    Quote:

    I received another voicemail this morning from this woman "from the county" who again admonished me to contact them directly and claims she'll be at my place of residence and/or employment between 3 and 5 today.
    This is a complete fabrication. You are not about to be served with anything.

    Process servers don't call you to threaten you with service. They simply show up, hand you papers, and leave. Sometimes they even tell you that they're sorry to be the ones to bring you bad news. But they don't call you ahead of time to threaten you with any action at all.

    This is doubtless a junk debt firm that tries to frighten people into paying debts that are no longer collectible through the courts. Block their number from your phone. In 6 or 8 months, when they sell it to another firm, repeat. Eventually, they'll sell it to a firm that collects old debts in a legitimate fashion.
  • 09-30-2013, 10:34 PM
    jdmaley
    Re: Suspicious Lawsuit Threat
    True. Not a soul showed up today. Too bad. Thanks again to all, I appreciate your time and advice. Now I know, which is, as the saying goes, half the battle.
  • 10-01-2013, 12:16 AM
    billy the kid
    Re: Suspicious Lawsuit Threat
    bummer, and you made tea and biscuits for them ... lol

    but in most states, the statue of limitations can be waived ... so double chk your state law and don't ignore a complaint (it does not sound like you would) ... its usually an affirmative or special defense (one that allows you to win even if everything in the complaint is accepted as true)
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