Sued by a Buyer of Old Credit Card Debt
My question involves collection proceedings in the State of: Arizona
I opened a $500 limit credit account in 2009. I believe the account was closed in 2012 due to late payments. My ending balance was approximately $500.
It is now May 2014. Apparently, LVNV Funding has purchased this old debt and they are now trying to sue me with the help of an in-state law firm for over $1000. The first document that I received from the prosecuting attorney was an "Order Authorizing Alternative Method of Service and Extension of Time to Serve". Now they have sent me a document titled "Application for Default and Entry of Default". It also says that I have 10 days to "file a responsive pleading" or else the Default will be effective and the Party may request a Judgement against me.
What should I do now? I never opened any accounts with LVNV. I don't see how I can be in debt to them directly. Do I need to file my written response with the courts? Or with LVNV? Or with the prosecuting attorney? What should my response say? Am I better off calling a bankruptcy attorney? I'm not exactly in a position where I can pay over $1000 to LVNV.
Please help. I'd appreciate any advice here. Thank you!
Re: What to Do if Sued by Lvnv Funding LLC
This happens all the time. They're now the owner of the debt, so yes - they can come after you.
If you don't respond, they'll get their judgment and likely a writ of garnishment/levy at the same time. If you do respond..well, you'll probably get the same result.
Have you even considered trying to negotiate? Now that they've had to sue, there's really no incentive for them but you never know.
Re: What to Do if Sued by Lvnv Funding LLC
It sounds like you are saying that I'm pretty much screwed, so now try to negotiate with the prosecuting law firm? What do I tell them? Do you think I can haggle down the money they are asking for? Don't I have a better chance if I file for bankruptcy?
Re: What to Do if Sued by Lvnv Funding LLC
Bankruptcy might be a valid idea if you have substantial debts but it's rarely a good idea if you're only looking at a grand or two.
NOLO has a handy guide to look at, and no doubt other respondents will add to the discussion.
http://www.nolo.com/legal-encycloped...-mistakes.html
Re: Sued by a Buyer of Old Credit Card Debt
LVNV Funding is likely a collection agency that bought the delinquent account so, yes, now you owe LVNV Funding.
The statute of limitations for a lawsuit is 6 years in AZ so they are well within the time limit to sue.
The first thing (very important) that I urge you to do is go to the courthouse where the lawsuit was filed and get a copy of the complete case file, every piece of paper in it, so you know what's going on.
There should be a court name and address and case number on your papers that you received.
Then come back to this thread and discuss.
Re: Sued by a Buyer of Old Credit Card Debt
According to my credit report the original account is labeled as a "revolving charge account". It is pretty much like a credit card. It was also my understanding that the Statute of Limitations (SOL) in Arizona for these types of accounts is 3 years. I got my information from a book by Kevin Trudeau.
BTW, I have already received a message from LVNV via the Better Business Bureau which contained a few old billing statements. This message also states that this account was "charged off" on May 31, 2012 with a balance of $420.00. LVNV is now claiming that my balance owed is just over $1000.00.
If I do go to the courthouse I'm positive that their case files will reflect much of this same information.
What do you think I should do now? Should I try to negotiate (per the recommendation of Dogmatique)? Doesn't LVNV have to prove that they own the debt?
Re: Sued by a Buyer of Old Credit Card Debt
If you want to try to negotiate a lesser payoff, call and negotiate. That's your decision to make.
If you appear and defend, and follow proper procedure, you can compel the plaintiff to prove their right to collect the debt during the litigation of their lawsuit.
Arizona clarified its limitations period for credit cards, back in 2011:
Quote:
Quoting ARS Sec. 12-548. Contract in writing for debt; six year limitation; choice of law
A.
An action for debt shall be commenced and prosecuted within six years after the cause of action accrues, and not afterward, if the indebtedness is evidenced by or founded on either of the following:
1. A contract in writing that is executed in this state.
2. A credit card as defined in section 13-2101, paragraph 3, subdivision (a).
B. If there is a conflict between another jurisdiction and this state relating to the statute of limitations for a debt action as described in subsection A of this section, this section applies.
Quote:
Quoting ARS Sec. 13-2101(3)(a)
3. "Credit card" means: (a) Any instrument or device, whether known as a credit card, charge card, credit plate, courtesy card or identification card or by any other name, that is issued with or without fee by an issuer for the use of the cardholder in obtaining money, goods, services or anything else of value, either on credit or in possession or in consideration of an undertaking or guaranty by the issuer of the payment of a check drawn by the cardholder, on a promise to pay in part or in full therefor at a future time, whether or not all or any part of the indebtedness that is represented by the promise to make deferred payment is secured or unsecured.
Re: Sued by a Buyer of Old Credit Card Debt
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Quoting
azlegal3
According to my credit report the original account is labeled as a "revolving charge account". It is pretty much like a credit card. It was also my understanding that the Statute of Limitations (SOL) in Arizona for these types of accounts is 3 years. I got my information from a book by Kevin Trudeau.
You should read the reviews and complaints about his books. Lots of hype and misinformation.
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Quoting
azlegal3
BTW, I have already received a message from LVNV via the Better Business Bureau which contained a few old billing statements. This message also states that this account was "charged off" on May 31, 2012 with a balance of $420.00.
A "charge off" is just an accounting thing that allows a tax deduction for a bad debt. You still owe the money.
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azlegal3
LVNV is now claiming that my balance owed is just over $1000.00.
The debt will continue to grow with interest, fees, and costs over time. The longer you wait to address the debt, the bigger it gets.
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azlegal3
If I do go to the courthouse I'm positive that their case files will reflect much of this same information.
You'd probably be wrong. You still need the case file.
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Quoting
azlegal3
What do you think I should do now? Should I try to negotiate (per the recommendation of Dogmatique)?
Up to you.
You can offer as little or as much as you want to see if they'll settle for a discounted amount. Just make sure you make you have the cash to back it up. And get the agreement in writing that it's full and final settlement of a disputed debt.
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azlegal3
Doesn't LVNV have to prove that they own the debt?
Not until they are in the courtroom.
Trouble is, by the time you get there the debt will have grown more with their lawyer fees.
Since you obviously owe the money, you'll probably lose, they'll get a judgment for a lot more than they are asking now, and if you can't pay they'll garnish your wages and levy your bank accounts.
Re: Sued by a Buyer of Old Credit Card Debt
Thanks for the info adjusterjack. Now I have a few more questions for you.
I am considering a negotiation for a lesser discounted amount in a lump sum. Should I talk to the prosecuting law firm? Or call LVNV directly? Or call the court?
Also, wouldn't it make more sense if I paid the money to the original creditor who gave me the charge account in the first place? I'm just wondering if the law suit will be dropped if I payoff the original creditor?
Thanks for your time.
Re: Sued by a Buyer of Old Credit Card Debt
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azlegal3
I am considering a negotiation for a lesser discounted amount in a lump sum. Should I talk to the prosecuting law firm?
The lawyer.
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azlegal3
Or call LVNV directly?
You could try but they might not talk to you since they have a lawyer representing them.
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azlegal3
Or call the court?
The court won't do anything as it's not a party to anything.
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azlegal3
Also, wouldn't it make more sense if I paid the money to the original creditor who gave me the charge account in the first place? I'm just wondering if the law suit will be dropped if I payoff the original creditor?
It's also likely that the original creditor won't give you the time of day. The creditor either sold the note and they are done with it or they have a contract with the collection agency that forbids them to deal directly with the borrower.
Either way, you are pretty well stuck with dealing with the lawyer for the collection agency because that's how it works when it gets this far down the road.