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  1. #1
    Join Date
    May 2009
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    2

    Default When to Negotiate (Pre-Lawsuit)

    My question involves collection proceedings in the State of: Maryland


    I have an incorporated company of which I am the CEO of and a credit card was issued to the company on behalf of my name. The card has about $8k on it and I have not make any payment going to year now. The banks has called and sent several letters but all of which I ignored and now they have sold the debt to some kind of law firm. The law firm is now calling me but I am yet to talk them, they left me two messages now.

    Finally I got the courage to call the law firm back few hours ago and I demand a validation of the loan, but the lawyer I spoke to try to get me to make either payment plan or settlement right on the phone but I insist in getting a letter of validation from their law firm to confirm the debt and to make sure the numbers does match. The rep told me that this is a law firm and not a debt collector and if i do not agree to settlement or payment plan over the phone they will have no choice but to go ahead with the law suit.
    I told him, I will have to call him back and he said if I do not call back before their closing hours, they will proceed with the law suit.
    Please is this legal?
    Please, I am confuse as what to do now, should I continue demanding for the validation letter or should I agree to make settlement now or wait and risk the chance of them suing me, please someone out there kindly advice me.
    P.S i do not disagree that the debt is mine, all wanted is to have it in writing from their law firm and opportunity to go over it and check the accuracy of the numbers and come up with settlement that I can keep without defaulting again


    Thanks in Advance

  2. #2
    Join Date
    Sep 2005
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    Posts
    98,846

    Default Re: When to Negotiate (Pre-Lawsuit)

    From what you say this is a commercial debt, not a consumer debt, so the FDCPA does not apply.

    It's legal for a plaintiff's lawyer to try to negotiate a payoff or settlement. It's legal for you to dispute the debt in court, and take advantage of the discovery rules for the court you're in to try to get more information about the account and balance claimed.

  3. #3
    Join Date
    May 2009
    Posts
    2

    Default Re: When to Negotiate (Pre-Lawsuit)

    Quote Quoting Mr. Knowitall
    View Post
    From what you say this is a commercial debt, not a consumer debt, so the FDCPA does not apply.

    It's legal for a plaintiff's lawyer to try to negotiate a payoff or settlement. It's legal for you to dispute the debt in court, and take advantage of the discovery rules for the court you're in to try to get more information about the account and balance claimed.
    First of all, I am not denying this debt however I do not have money to pay it all back so I know my best bet is settlement with a good payment plan, but I would love to get the best settlement and payment plan there possible. I just wanted to make sure that I get the best possible deal i can get in term of the settlement because I do not the full money. I called BOA on (5-8-09) and they did confirmed that the debt has been sold to Frederick J. Hanna & Associates, PC. 2008 1427 Roswell Road, Marietta GA 30062 (770) 988-9055 | (770) 980-0528 (800) 555-1212 So I called the office back and the person in charge of my debt told me that since I did not call him back the last time we initial talk that I have lost my right to barging or to any kind of settlement and the the debt has been processed to go into lawsuit on Monday. I told him that I had a talked with my uncle who had agreed to give me a grand for the settlement for next week Friday. He said well the only deal he can offer me now is for me to pay 3k and some change but I must commit to some kind of payment now and if not the lawsuit will continue as planned. He said I must write a post dated check for Friday and agree to $250 per month for the remaining balance but I insist that I cannot come up with $250/month and he said what about $200, I said no and he said $175 and I still say no and he said well he cannot go lower than that and is my choice because they are going along with the lawsuit and they will sue me for the full amount including the lawyer and court fees. I told him that even with that I still cannot come up with $175/month due to other expenses that must be also care for, and so finally he asked me how much can I afford and I said $50/month and he said ok, so I ask him if he can put that in writing so I can have a written evidence and he said no and we were going back and forth for a while and he asked if I would like to speak to his supervisor and I said yes. So the supervisor came up on the phone and said she will settle for $2k if I paid $1k by Friday and the $500 the following month and then the remaining $500 the next following month and I agreed but I still insist that I want it in writing so I told them that I will call then back to give them a fax number to fax the letter. But the truth to the matter is that my uncle did not promise me any money and I do not have either $500 per month however I know I can surely rally around for 1k to settle the debt from friends and family but not 2k and I do not want a situation where I will have to default again. I goggle the name of the company and i found them in http://www.ripoffreport.com and after reading some posts there I started to wonder if these people are real, Would a real legitimate lawyer be asking for payment or settlement over the phone that they are probably acting as a collecting agent for BOA but I do not for fact that the debt has been sold to the company because BOA rep confirmed this over the phone but just not sure if they are really a law firm or a collector or collector law firm, and here are my concerns and questions: Am I getting the best possible deal or should I press further? Must I continue to ask them to at least have our agreement in writing because I do not completely trust the company, and if I send them a registered mail asking for validity of the debt would they still be willing to make deal with me or would this piss them off and go all out for all the money? Most importantly, how do I get the settlement down to a 1k without pissing them off and what exactly should I ask them in writing for the settlement apart from the agreement itself and their manager signature.

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