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  1. #1
    Join Date
    Apr 2014
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    2

    Default I Settled a Credit Card Balance but Now I Received a Summons -

    My question involves personal finance in the State of: New Jersey

    Here is a brief background: Back around 2009 I had a credit card that was used to purchase some things for a wedding I had in Sept of 09. Shortly after our wedding US Bank increased the rate to 20+ percent interest because I was a couple days late on payment. I paid right when I noticed it was late but then the rate already changed and they wouldn't bring it down and we had then about 14k or so on the card because of the wedding (previously zero or very low balance). Because of that high rate we could no longer afford the payments and so in Summer of 2011 I was approached by CACi (a collector for US Bank) and they said they can settle for half if I can make payments of 526.05 per month and have it auto debit my account for 12 payments. It was debiting successfully all those months (I have record) and then the last payment never debited to I called in Sept of 2012 and asked why it did not debit and they said because some other company was now working on it instead and that they would contact me to give me details. I never got any other information from them and no one else ever sent me any more statements or anything saying I owed so I though maybe I had my calculations wrong and maybe it was totally paid. Note: Previous to that I was getting a statement monthly from them in the mail but after that I never got anything else.

    I thought everything was okay until around Thanksgiving I got a call from some portfolio company. He said I had a balance owing for the card ending in xxxx and I said no I already settled that back with CACi and he said I have to call them and they will put a hold on the account. I called CACi and they said they don't have any of my records anymore and the guy on the phone sounded like he was working out of a basement. I asked to speak to his manager because surely they wouldn't delete my files from just a few years ago and that guy also said he doesn't have anything and hung up. I then called US Bank and got transferred all around until I spoke to one lady who said don't worry I will call CACi and notate your account and get to the bottom of it. So I relaxed and took notes of the conversation and emailed to myself so I wouldn't forget.

    Now I get a summons in the mail from that portfolio company ( their name is Portfolio Recovery Assoc LLC ) and they are suing me for $8,125! I called them right when I got it (yesterday) and he said they don't care what happened with the other company - I need to set up a payment arrangement with them. I don't think this seems right and I called that CACi company back and they say again they don't have any of my records anymore! I formally wrote them via email and by fax in Feb of this year requesting they send me all information on my account as well as details on the arrangement I had with them and nothing back. I don't know if I have a case but I have records of making all those payments. Please someone help me know if I have a case or if I am just stuck.

  2. #2
    Join Date
    Apr 2009
    Location
    Somewhere near Canada
    Posts
    35,894

    Default Re: I Settled a Credit Card Balance but Now I Received a Summons -

    Do your receipts ever match up with the total debt burden?
    An intelligent hell would be better than a stupid paradise - Victor Hugo

    Do not microwave grapes

  3. #3
    Join Date
    Apr 2014
    Posts
    2

    Default Re: I Settled a Credit Card Balance but Now I Received a Summons -

    Not the total because it was a settlement so they were settling at half the total amount owed but I have record of all the 526.05 payments I made for 12 months that we agreed. My agreement should have been deemed settled in full because they stopped debiting my account.

  4. #4
    Join Date
    Jan 2008
    Location
    Toledo, OH
    Posts
    16,307

    Default Re: I Settled a Credit Card Balance but Now I Received a Summons -

    Do you have anything in writing regarding the settlement agreement? That would be helpful.

    File your answer with the court, noting what you have noted here (that it was settled with the previous collector, you have bank statements reflecting your payments). Retain counsel and fight these scumsuckers. Portfolio Recovery are junk debt buyers who rely on scare tactics to improperly collect debts, including debts no longer owed.
    I'm not a lawyer, but I play a researcher on the internet!
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  5. #5
    Join Date
    Jan 2013
    Posts
    372

    Default Re: I Settled a Credit Card Balance but Now I Received a Summons -

    Do you have any paperwork from CACi which agrees to the lower amount that you mention? Why didn't you send a check for the final month's payment if the debit wasn't working?
    CACi has a web-site. Do you have an account? What happens when you access your account?

  6. #6
    Join Date
    Jan 2006
    Posts
    38,867

    Default Re: I Settled a Credit Card Balance but Now I Received a Summons -

    Quote Quoting Bconner
    View Post
    My agreement should have been deemed settled in full because they stopped debiting my account.
    that's not how it works.

    do you have any proof of your settlement agreement other than your claim you had a settlement agreement?

  7. #7
    Join Date
    Apr 2009
    Location
    Somewhere near Canada
    Posts
    35,894

    Default Re: I Settled a Credit Card Balance but Now I Received a Summons -

    Yeap, it looks like that's exactly what happened.

    OP paid a bunch, but got no official documentation relating to a balance/money still owed.
    An intelligent hell would be better than a stupid paradise - Victor Hugo

    Do not microwave grapes

  8. #8
    Join Date
    Jan 2006
    Posts
    38,867

    Default Re: I Settled a Credit Card Balance but Now I Received a Summons -

    Quote Quoting Dogmatique
    View Post
    Yeap, it looks like that's exactly what happened.

    OP paid a bunch, but got no official documentation relating to a balance/money still owed.
    If that is the case, unless the prior collection agency is willing to attest to that, in court if necessary, OP loses. If they will testify to the agreement, then OP still has to overcome the fact he never completed the payment agreement. He can try to argue all he owes is one payment but the creditor is free to argue that since he breached the agreement, the conditions prior to the agreement are put back into place.

    Even with that said, I would listen to what Missy said. Sometimes calling their bluff is enough. I would surely give it a shot.

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