Help with getting sued by law firm re: old debt

[stevewright]

What is the name of your state (only U.S. law)? CT

Hi everyone. A credit card acct of mine went into default a few years back, and now I am getting sued in small claims court. Not the end of the world, but I am hopeful that someone can take a moment to try and guide me with some dos and donts.

My account was sold to Midland Funding, and there is a law firm in my state who has filed suit. I have been trying to find out from Midland if this law firm has been hired to represent them, or if Midland has sold them this account, but cannot get an answer. Not sure that it matters, but.

The total amount sought is just under $4,500. Which is higher than the last dollar amount owed on the actual account, which sort of bugs me.

I had a conversation with someone from this law firm prior to the suit, and we tried to negotiate a deal. The lowest they would go is $2,300. I offered $1,200 which they did not accept.

So, I was hopeful that someone can give me advice on how to best handle this. Of course I am going to answer to the court - I understand that avoiding this is not good. Is there anything specific I should say - or not say - in my answer to the court?

Also, I have done some research, and found that I should ask the following:

Find out what the amount is that the collection agency purchased the account for. (is this even possible?)

Find out what the amount owed was at the time the agency purchased the account,

A copy of the last billing statement sent to me by the original creditor.

State the amount of the debt when you obtained it, and when that was.

Explain how the added interest, fees or other charges are expressly authorized by the agreement creating the debt or are permitted by law.

Assuming they have all their ducks in a row, and I get everything, what is the best way to handle this? Just wait for a court date, appear, and hope for the best?

Any advice will be greatly appreciated. Thank you.

 

[latigo]

Are you nuts?!

The purchaser of the debt agreed to settle for a fraction short of 50% - and not once having denied the legitimacy of the principal and interests claimed - you turned it down and now are hoping for the best?!

You just passed up the "best"!

As to the preparation of your "answer' to the claim and court participation in attempting to establish your "defenses", I suggest that you be aware of Section 52-568 of the Connecticut Statute dealing with "Vexatious Litigation:

"Any person who commences and prosecutes any civil action or complaint against another, in his own name or the name of others, or asserts a defense to any civil action or complaint commenced and prosecuted by another (1) without probable cause, shall pay such other person double damages, or (2) without probable cause, and with a malicious intent unjustly to vex and trouble such other person, shall pay him treble damages."

 

[adjusterjack]

Assuming they have all their ducks in a row, and I get everything, what is the best way to handle this? Just wait for a court date, appear, and hope for the best?

I have to agree with latigo. You blew it. There's nothing left to handle. The Plaintiff's lawyer goes first and will present documentation of the debt and no matter what you ask, the court will issue a judgment against you for the amount of the debt.

The $4500 claimed includes the past due balance, late charges, interest, and attorney fees incurred by the Plaintiff to date. Credit card agreements have a provision that loser pays winner's attorney fees and court costs.

Now that you've compelled these people to file suit there will be additional attorney fees by the time the trial is over plus post-judgment interest plus any further costs for the attorney to enforce the judgment if you don't write a check on the spot.

By the time you are all done paying your cost could have skyrocketed to $6000 or $7000.

If you want to "handle" this I suggest you call the lawyer and see if the $2300 deal is still on the table. Probably won't be because they'll know you are shaking in your shoes about going to court when you have no defense to the debt.

Be prepared to pay whatever they want for dropping the lawsuit because going through with the lawsuit to the other side will be so much worse.

 

[stevewright]

Hi - thank you for the responses. Wish I knew who I was talking to here :/

As for being aware of Section 52-568 - not sure I understand that part...

In terms of lawyers fees - no. Those are not recoup able in small claims. Not unless the case has been transferred to Superior Court as per the defendant.

If anyone else has any ideas and/or suggestions, I would love to hear them.

Thank you again.

 

[quincy]

Hi - thank you for the responses. Wish I knew who I was talking to here :/

As for being aware of Section 52-568 - not sure I understand that part...

In terms of lawyers fees - no. Those are not recoup able in small claims. Not unless the case has been transferred to Superior Court as per the defendant.

If anyone else has any ideas and/or suggestions, I would love to hear them.

Thank you again.

I differ a bit from the others in my advice.

When you are dealing with Midland Funding, you are dealing with a company that has been sued by several states over its illegal debt collection practices. I recommend you have the facts of your debt and your interactions with Midland reviewed by a consumer protection professional in your area before you consider settling the debt or going to court.

There was a recent thread in the Bankruptcy section of the forum on Midland. You might find some information provided in that thread helpful (or not ). Here is a link to the thread: https://forum.freeadvice.com/consumer-bankruptcy-2/midland-funding-llc-garnished-my-wages-even-though-they-knew-i-wrong-person-616817.html

Good luck.

 

[single317dad]

It's very unlikely that Midland has sold your debt. They tend to hold debts and sue en masse rather than sell off.

Regarding the settlement: they're not required to settle at all, and if they refused your offer once, they probably won't accept it (or a similar amount) now. Most JDBs will be quite happy to settle for ~50% though, so feel free to make that offer.

I have to admit a strong anti-Midland bias (as has been shown in some of my previous posts). Short of defaming the company and its representatives, I'm not sure I can adequately express how much I dislike them and a few select other JDBs. I've had my own dealings with them (complaint and counter both dismissed), and they sued my best friend over a debt he had no liability whatsoever for. Midland finally harassed him into submission as paying $7500 was better for him than taking more time off work and dealing with the constant harassment of his friends, family, and business associates.

In your case, however, it seems you actually owe the debt and the amount is pretty close to accurate. I strongly recommend you do your best to make them a satisfactory offer, because they will beat you in court and they will take the money owed them. Good luck.