Collection called threatened court

[sweepsfairie]

What is the name of your state? PA

On Sat I guy called from Commonwealth Financial (also northeast credit and collections) about a collection account they bought from Citibank. They are threatening to take me to court, can they do that? I told them to provide written proof that this account is mine and he said he could not do that because they bought the account. I post dated a check to them for $600 for the 30th because I told him I would not give him anything until I have something in writing that they would settle the account for $1000, now if I stopped payment on that check and mailed them a check for $500 and sent a letter stating that if that check was cashed that means the account is payed in full and they can't collect anything else, is that possible? On my credit report it says the collection was reported 4/05 assigned 12/04 amount $2001 status of 4/05 unpaid date of first delinquency 12/02
or if I don't pay anything can they take me to court?

[zippysgoddess]

Putting a stipulation on your check is not legal and binding, sorry. It doesn't matter if it is in a seperate letter sent with the check, or on the check itself.

By not sending them a letter certified mail, and insisting that they validate the debt, and giving them a post dated check, you have already made the mistake of admitting the debt is yours, so validation will not do you any good now. You should have sent a letter CMRRR and asked for the validation, they do have to provide that, however, now if they didn't have it before, you just handed it to them. The man you spoke to was wrong, they do have to provide that info to prove the debt is yours, but as I said this is all moot as you just gave it to them freely.

If you stop payment on the check, you give them more fuel to their fire. They will just add on charges for the worthless check, with more interest.
You can try to negotiate a settlement with them, and if they agree to something, get it IN WRITING, or don't send them any payments.

Yes, they can sue you, and if they get the judgment against you, they can pursue any legal means to collect the debt. In PA this could be wage garnishment, liens on your personal property, and seizure of your bank accounts.

You have screwed yourself significantly here, you should have come here and asked advice before giving them a post dated check or anything else.

You did not get the settlement agreement in writing, and they do not even have to wait until the 30th to cash that check, they can put it through now if they really want.

[sweepsfairie]

Thanks for the info, I always seem to screw myself. I panicked, because he said even though the house is mine they can still come and tag stuff in it for sheriff sale. I never thought to come here first, I couldn't get him off them phone he was rude

[sweepsfairie]

They are still calling me and will not leave me alone. I have not received their letter for settlement for $1000 and I told him I am not willing to settle for that and I will settle for $600 on the posted check I gave him, he said they won't because it for $2300, I also told him that postdating a check was illegal and he didn't appriceate that either

[sweepsfairie]

Now what, sorry I clicked to soon

[Ladynred]

I panicked, because he said even though the house is mine they can still come and tag stuff in it for sheriff sale

And that was a WHOPPING LIE !! Guess what, its their TACTIC to scare you into paying. They accomplished their goal - you panicked on a LIE. The can't come in and tag ANYTHING unless they sue you first and win a judgment. Even after that, the PA exemptions would likely prevent them from taking anything.

As Zippy said, you shot yourself in the foot by sending them that check. Not only did you reset the SOL, but they WILL cash that check and then they'll keep coming after you. They're not going to send you any settlement letter, they now think you have money to pay and they're going to harrass you until they get it.

If you want to negotiate, do NOT do it on the phone, they will do nothing but LIE and nothing verbal will EVER hold up. You need it in writing. Even for a 4 year old debt, you're not going to have much sucess paying only $600 on a $2300 debt.

[sweepsfairie]

They said they sent a letter on Sat saying they will settle for $1000 I am going to pay and be done with it, it was from another relationship and I just want my credit cleaned up! I am going to give them the $600 and pay the rest in payments. I told the guy to go f himself on the phone so that probally didn't go over to well

[Leinalani]

Originally Posted by sweepsfairie

They said they sent a letter on Sat saying they will settle for $1000 I am going to pay and be done with it, it was from another relationship and I just want my credit cleaned up! I am going to give them the $600 and pay the rest in payments. I told the guy to go f himself on the phone so that probally didn't go over to well

I was wondering....since this person has been told that a letter was sent on Saturday saying that they will settle for $1000.00, shouldn't this person wait until the letter arrives before making any other payments just in case they are BSing this person again?

Just thought i'd ask since some of the other posts said for this person to wait for a letter of settlement before making any kinds of payments because of their lying tactics.

[Ladynred]

it was from another relationship and I just want my credit cleaned up!

Well, if you're expecting paying them to 'clean up your credit' you're in for a rude awakening -- and you'll still have lousy credit. In fact, paying old debts can LOWER your scores, not raise them. Paying the debt will NOT remove it from your reports. Guess what - a paid charge-off is still a negative and it still stays there for the full 7-1/2 years. Some CA's will agree to a 'pay for delete' but since you short-circuited that possible process, its unlikely you'll get anywhere with that now.

To answer the other question - YES, she should have waited for the letter (bet she never sees one !) before sending a single dime.

[zippysgoddess]

The real sad thing is, this debt was probably moving up very close to the SOL, because in PA it is 4 years, that is probably why they were getting so tough on the phone, and scrambling to get some action on it.

[sweepsfairie]

great, I didn't get a letter today either, so I probally won't get one. The CC is not on my credit I had that removed but the collection account is. I have not paid them anything. I gave them a post dated check.

So.....

Should I stop payment on the check?
Can they still sue me?
So when it says assigned 12/04, thats when they bought the account?
And does the SOL go from the orignal del date or when the CA got it?

[Ladynred]

I would stop payment on the check, unless you intend for them to have it, just make sure you tell them you stopped it so they don't start screaming fraud when they try to deposit it. You can always say your payment was contingent on 'the letter' - which you probably won't get.

SOL starts when the debt first went into default, NOT when they bought it. As long as no payments were made, that remains the same.

The 'assigned' date is when they either bought the account or it was given to them by the creditor or some junk debt buyer.

[sweepsfairie]

If I stop payment will they still be able to sue me?
What if I get the letter, and don't pay it?
I just really know what I should do? I don't really have the money to pay it. Can you tell me exactly what I should do?(I'm a little dense sometimes!)

[zippysgoddess]

Well you need to understand one thing, they can still try to sue you regardless of whether you stop payment on the check or not. So that won't make a difference.

Do what Ladynred said, stop payment, if they want to know why, tell them it was contingent upon getting the agreement letter. If you do get the letter, you can still always just use on of their own tactics and say "What Letter?"

[sweepsfairie]

Thanks! I am going to write them a letter stating Payment was contingent on receipt of letter that I have not received and also written proof that this account was mine which they did not provide. I was a victim of fraud, it is on my credit report (my sister and her bf opened these accounts in my name, but she passed away, he is still around, he was the authorized user on this account) and that it is passed the SOL

Should I send it delivery confirmed?