Settling Credit Card Debt After Summons from Collection Agency
My question involves collection proceedings in the State of: CA
I have a few questions regarding my credit card debt and court summons.
1). Since collection agencies purchase non payment accounts from the creditor for pennies on the dollar, what is a reasonable amount to offer to pay to settle my debt? The summons states that I owe $2900 (I have no idea how much of that is actually from accumulated fees and interest).
2). The actual summons was left on my mother's doorstep without any verification of receipt. Is that a legitimate way of serving these types of papers?
3). Her address has not been my permanent residence since 2003. Why is she getting these papers?
4). She lives in Illinois and the summons is to a Cook County court. However, I live in California. How do I go about getting the case moved to my current state of residence?
5). I am a full-time student, with no income and supported completely by student loans. How does that figure into the repayment issue?
thanks for the help
Re: Settling Credit Card Debt After Summons from Collection Agency
1. There's no magic number. You can negotiate and see what happens.
2. Read these statutes.
3. Apparently because the creditor doesn't have your current address.
4. If this is an obligation that arose when you were living in Illinois, and they've served you to the satisfaction of the court, then the lawsuit will continue in Illinois. Those statutes I linked for you back when you told me that proceedings were occurring in California? You can look for the equivalent rules for Illinois service of process.
5. It will make it difficult for you to pay, and you'll have to be careful about having your student loans garnished out of your bank accounts.
Re: Settling Credit Card Debt After Summons from Collection Agency
Thanks for your reply. I have a few follow up questions for you, if you don't mind.
First off, I know that there is no "magic number", but rather was looking for guidance on an appropriate range. In other words, if I had to throw a number out there that I was able to pay, what would be a good place to start (not too low that they laugh at me, and not too high, that I give them more than they are looking for)?
Also, given that the creditor obviously does not have my current address, do I then have to continue the proceedings in Illinois? Or do I still have the option of requesting the case be transferred to California?
Thanks again for the help.
Re: Settling Credit Card Debt After Summons from Collection Agency
yes, I see what you are saying,, I would do some personal research,.
I see commercials & Net Ads ,,all the time, where they settle about 20% of the total
if they owe $1000 they pay $200...
I remember in another lifetime...& I had lost a bill through the cracks... & a collection agency bought the account and were making offers from the start at $50% the principle.... which means you could most likely negotiate lower...
"Pennies" being a key work.....If they bought a dead account potentially worth $3000 for $25 bucks...& you settled on the spot for $300....they have done good ....
Don't worry about them "laughing at you".. tell them you have no money...& are borrowing to pay this off & sorry that is difficult enough to come up with & you are trying to do the best you can..