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  1. #1
    lbailey66 is offline Junior Member
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    Being sued, only income SSI: SOL question too!

    What is the name of your state? Delaware

    I have to put in a bit of background info first: My brother's only source of income is SSI (since 1990) and his state disability check ($1000 total). He is also mentally "slow".....well enough to live alone, but we found out he got himself into trouble; namely $5000 of credit debt while his income at the time was $9000 a year. He owed Penney's/Monogram Bank about $1800, and paid $1600, but with the 21% interest, still has a balance of $827 that he can't pay. Since at least 2000, he has been constantly delinquent of the debt, making partial payments occasionally, the last one in Nov 2004, but ALWAYS past due.

    Last year everyone charged off the remainder of the debt, including Penney's, (he paid $4500 of the $5k initial total debt), but now Wolpoff & Ambramson is suing him for $827 on behalf of Monogram Bank...Penney's is not listed as a plaintiff at all. Obviously, most of the $827 is because of the 21% interest. His hearing is next week (we found out about this late: long story) .

    So...what's your take on this? Is there a snowball's chance that the judge can basically say to Monogram, you got back 90% of the debt, let the rest go, or only make my brother pay the $200 balance, not the $627 interest? If the judgement is against him, can they garnish his disabilty? Did the SOL start when he first became delinquent on the debt (5 years ago), or his last payment? How much would he pave to pay per month and at what interest? Sorry, I know, lots of questions!

    FYI:, Yes, I could pay this for him, but, it could hurt his reduced rent (Section 8) payments and benefits, AND, frankly I am PO'd that these credit companies gave him so much more credit than he could possibly pay. They know of his disabilities, it's clear when talking to him, and his limited income. He missed payments and still they increased his credit line. They took the risk and they lost, in my opinion. (I know that doesn't count.) And yes, since this all came to light, I have taken over his finances, gotten a POA, etc etc. We just didn't know until it was too late. And, I don't care how badly this will hurt his credit, I actually WANT bad credit so these vultures will leave him alone. Thanks for any answers, I apoliogize for the length.
    Last edited by lbailey66; 11-03-2005 at 06:23 PM.
  2. #2
    debtcollector` is offline Senior Member
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    Quote Originally Posted by lbailey66
    I have to put in a bit of background info first: My brother's only source of income is SSI (since 1990) and his state disability check ($1000 total). He is also mentally "slow".....well enough to live alone, but we found out he got himself into trouble; namely $5000 of credit debt while his income at the time was $9000 a year. He owed Penney's/Monogram Bank about $1800, and paid $1600, but with the 21% interest, still has a balance of $827 that he can't pay. Since at least 2000, he has been constantly delinquent of the debt, making partial payments occasionally, the last one in Nov 2004, but ALWAYS past due.
    That is unfortunate. I have heard of many mentally disabled people that make mistakes with credit.


    Quote Originally Posted by lbailey66
    Last year everyone charged off the remainder of the debt, including Penney's, (he paid $4500 of the $5k initial total debt), but now Wolpoff & Ambramson is suing him for $827 on behalf of Monogram Bank...Penney's is not listed as a plaintiff at all. Obviously, most of the $827 is because of the 21% interest. His hearing is next week (we found out about this late: long story) .
    That would be because Penny's was a private card backed by a bank. The bank is the damaged party.

    Quote Originally Posted by lbailey66
    So...what's your take on this? Is there a snowball's chance that the judge can basically say to Monogram, you got back 90% of the debt, let the rest go, or only make my brother pay the $200 balance, not the $627 interest?
    No. In fact I think a snowball has a better chance.

    Quote Originally Posted by lbailey66
    If the judgement is against him, can they garnish his disabilty?
    No.

    Quote Originally Posted by lbailey66
    Did the SOL start when he first became delinquent on the debt (5 years ago), or his last payment? How much would he pave to pay per month and at what interest? Sorry, I know, lots of questions!
    Honestly, wouldn't know without more information. If they are filing suit, it is probably within SOL, but it doesn't hurt to chack and raise the issue.

    Quote Originally Posted by lbailey66
    FYI:, Yes, I could pay this for him, but, it could hurt his reduced rent (Section 8) payments and benefits,
    No it can't.

    Quote Originally Posted by lbailey66
    AND, frankly I am PO'd that these credit companies gave him so much more credit than he could possibly pay.
    The real reason.

    Quote Originally Posted by lbailey66
    They know of his disabilities, it's clear when talking to him, and his limited income. He missed payments and still they increased his credit line. They took the risk and they lost, in my opinion. (I know that doesn't count.)
    Perhaps he should have to wear a marker: like a star. Or perhaps, the government ought to keep an open database of the mental abilities of every citizen so companies and people can check before doing business with people. Look, it's clear to you he's disabled. On paper it probably isn't and it doesn't matter. disabled people have rights too.

    Quote Originally Posted by lbailey66
    And yes, since this all came to light, I have taken over his finances, gotten a POA, etc etc. We just didn't know until it was too late.
    Well, as concerned family, that is your responsibility -- not just to him but to others as well.

    Quote Originally Posted by lbailey66
    And, I don't care how badly this will hurt his credit, I actually WANT bad credit so these vultures will leave him alone.
    It sounds like that has been accomplished.


    DC
  3. #3
    zippysgoddess is offline Senior Member
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    SSI payments cannot be garnished, or taken for a debt. However, if it goes into a bank account, they could freeze the account if they get a judgment against him, then you would have to prove all the money going into it was from SS, and fight for them to give it back.

    Also the SOL was restarted evertime he made a payment on any of the accounts, in Delaware, it is 3 years.

    Sorry, but you have no right to be mad at the credit companies, debtcollector is correct, disabled people have rights, too. You might scream that they gave your brother credit cards, even though they had no way of knowing his full condition, and there are others who have severe disabilites but can manage their finances just fine, who would scream if the credit agencies were discriminatory.

    I am disabled due to a chronic spinal condition, I sure wouldn't want the government to have to keep track of all of us who are considered disabled, and say we can't have credit anywhere. I have needed my credit card more than once in an emergency.
  4. #4
    lbailey66 is offline Junior Member
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    Perhaps he should have to wear a marker: like a star. Or perhaps, the government ought to keep an open database of the mental abilities of every citizen so companies and people can check before doing business with people. Look, it's clear to you he's disabled. On paper it probably isn't and it doesn't matter. disabled people have rights too.
    DC, I would have thanked you for taking the time to respond to my questions, but I can't bring myself to given the way you responded; it seems your motives were to condescend and judge rather than provide intelligent, thoughtful answers. I can only guess what compels you to respond with such snide and sarcastic remarks, especially when I said nothing to invite it.

    Zippysgoddess, thank you for your reply. I'd like to clarify though, that I fully understand disabled people have rights, and I NEVER said anything about the ridiculous notion of the goverment tracking people with disabilites....that was DC's idea of a snappy retort. My brother is borderline retarded...not bad enough to qualify for additonal help as far as assisted living, etc, but enough to make him easy prey. He can't use a computer, isn't good at filling out forms; the only way he has ever gotten credit is over the phone or in person. He has been taken advantage of more than once, by people who knew full well his income and mental faculties...truly the equivalent of people searching the obits to go after fresh widows and rob them blind.

    I'm not "screaming" at the credit companies, I know they should be paid, but I can't understand why they would extend $5000 on an income of $9000, then act surprised when he can't pay. They, as a business, should use better judgement. I was hoping it might mean something to the judge that he paid back over 90% of his debt, when he could have filed bankruptcy easily and skipped off without paying a thing. Obviously not. I know also that people negotiate with debt collectors to accept a partial payment and cut their losses; he didn't go that route either, he wanted to pay the whole thing back. It's like he's getting screwed for doing the right thing, so the message is, "file for bankruptcy instead".

    He still gets credit come-ons in the mail, and one of the companies that he has defaulted on offered to give him back $1000 credit if he can make a partial payment, rather than close the account. If --when-- he runs up the debt again I'm powerless to stop him, I live in another state and can't prevent it. If there's a next time, bankrupcty will be the answer.
  5. #5
    zippysgoddess is offline Senior Member
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    If I were you, I would talk to an attorney, if you have POA for your brother, there may be ways to stop him from getting more credit cards, without your approval. They may be able to put a flag on his credit reports or something. I can tell you that if you make a report to the CRA's that there might be problems with his accounts, and fraud, then they will not allow instant approval, and that is something you can do by phone, or online, without having to be there with him.

    A lot of these companies also make offers without checking someone's income, they just do it based on someone's credit scores, so that is why he could get such high limits with a low income.

    We will just ignore dc's comments, and the misunderstanding it caused.
  6. #6
    debtcollector` is offline Senior Member
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    Quote Originally Posted by lbailey66
    DC, I would have thanked you for taking the time to respond to my questions, but I can't bring myself to given the way you responded; it seems your motives were to condescend and judge rather than provide intelligent, thoughtful answers. I can only guess what compels you to respond with such snide and sarcastic remarks, especially when I said nothing to invite it.
    It is unfortunate that you choose to see your brother and yourself as the victims.
    In your first post you wrote:
    Quote Originally Posted by lbailey66
    They know of his disabilities, it's clear when talking to him
    No, it isn't clear. When your brother signs a form seeking credit and mails it in all they have to go by is his credit file. It is clear to you and you are upset because you are so emotionally tied to this case that you aren't seeing the big picture. Credit isn't issued by the corner store to Dave who lives down the street anymore. Credit decisions are made by computers based on scores and facts. If their is an anomaly, a person will review the file (those are rarer than you think - no is usually the result of an anomaly).

    My example served to show you that there is no way for everybody to know your brother is disabled. Apparently the point was made, because you again retreated behind the victim facade. What I refuse to do is condescend to giving you that out.

    DC

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