Old Credit Card Debt Sold

[FoodDiva]

What is the name of your state? Massachusetts

I have an outstanding credit card debt from Providian for around $2400, which includes interest and fees. It has been sold to Collect America and I have recently been contacted by a law firm representing them. Today was the first I spoke to someone and they were of course, not very pleasant to deal with. I indicated my desire to pay the debt but because of being self employed, "the bottom fell out" on my business awhile ago which catapulted me into falling behind. I had indicated that I was waiting to get a large payment from one of my clients that is past due and then I would like to call and make a settlement on a percentage of what is owed. They were refusing that at first but I indicated that I know credit card companies do that. By the end of the conversation, he offered me 20% off but only if I pay today, which is totally unreasonable. They have also been calling my mother, who lives in another state, and began rattling off personal information on her such as her line of credit at her local bank, the property that I own (2 buildings) and that I should just borrow the money to pay this debt immediately. My mother is 83, on a fixed income and I can't believe that it is legal for them to access her personal financial information, especially since my name is on the credit card account, not hers.

I'd like to know what is really legal here. They said Collect America takes these cases from people that have assets. So, I'm assuming they want to attach my assets. Can they? Does the homestead act that I have on my house protect my property, even if I have refinanced after I initially put it on? I would like to offer them a settlement when I have the funds to do so. Does Collect America do settlements? They indicated not. Any further advice would be greatly appreciated. I'd like them to stop phoning me as well. Should I send a letter to that effect? I've also been reading up on the Fair Debt Collection Practice Act. Does anything apply here? I would like them to stop phoning my mother.

Thanks

[debtcollector`]

****IGNORE THIS PHRASE _ I MISREAD THE CASE INFO::::There is some disagreement about whether or not the FDCPA applies to debt buyers. Different states have different rules. :::: **********

You really need to check the laws of your state. I'm willing to bet that there is some statutory protection for you in Mass laws because it is one of the most debtor protective - or anti-collections states.

You can send a CD to them, but I think you will be ensuring a lawsuit and everything that comes with it.

That said: You shouldn't have even been talking to them about a settlement if you don't have the money to pay. And collectors absolutely hate debtors that tell them what settlements they can offer.

Your biggest problem is you have assets. They don't have to take your offer. They can take the judgment, place a lien and wait. The interest and fees will grow and they'll make some serious money.

Work out a payment plan before it gets to court.

Good luck
DC

[Ladynred]

There is some disagreement about whether or not the FDCPA applies to debt buyers. Different states have different rules.

FDCPA is Federal, why would STATE laws have ANY bearing on it ?

It doesn't matter if the debt is purchased by a junk debt buyer or not, as long as the account was delinequent when it was sold then the JDB IS bound by the FDCPA - they are NOT collecting 'their own debts'.

and I can't believe that it is legal for them to access her personal financial information, especially since my name is on the credit card account, not hers.

An asset search, which these scummy collectors do is not illegal. *I* could get that kind of info on your property for about $25 if I had your name and SSN. However, if they discussed your debt with your mother THAT is a violation of the FDCPA - 3rd party contact of that nature IS illegal. Further, if they have your contact info, they have NO business calling anyone else !

They said Collect America takes these cases from people that have assets. So, I'm assuming they want to attach my assets. Can they?

They could, but ONLY if they sue you and win a judgment against you FIRST.

As for CACV's tactics, you may want to enlighten yourself by reading the info here: [url]http://www.budhibbs.com/debtcollectorpages/collect_america_cacv.htm[/url]

Does the homestead act that I have on my house protect my property, even if I have refinanced after I initially put it on?

It would protect your pri**** residence only.

CACV is about as scummy a collection agency as they come. They will break the law all over the place, and YES the FDCPA DOES apply to them !!

They have no legal right to be calling your mother when they already have your correct contact information !

[debtcollector`]

Originally Posted by Ladynred

It doesn't matter if the debt is purchased by a junk debt buyer or not, as long as the account was delinequent when it was sold then the JDB IS bound by the FDCPA - they are NOT collecting 'their own debts'.

First, I don't know anything about the agency that bought the debt. A ruling in Michigan was given on FDCPA violations that a debt buyer was not subject to the FDCPA as they weren't acting in the interest of another party.

§ 803. Definitions [15 USC 1692a]
(6) The term "debt collector" means any person who uses any instrumentality of interstate commerce or the mails in any business the principal purpose of which is the collection of any debts, or who regularly collects or attempts to collect, directly or indirectly, debts owed or due or asserted to be owed or due another.

Because the debt buyer is the owner they are acting in their own interest. Different states have added language to specifically address this short coming in the federal law and the Michigan case sited specific commented on the sloppiness of the legislation.

I am looking up the actual case link -- it may take a little bit.

DC

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***Check the above post -- I misread the case info. The Michigan court ruled that Kimber applied. ***
http://www.courtofappeals.mijud.net/documents/opinions/final/coa/20010302_c215158(47)_39o.215158.coa.pdf
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[Ladynred]

KIMBER !! Yes, THAT was the case I was thinking of when I made my post, I just couldn't remember the name of the case !! AAAGGGH.. I want my 20 yr old brain back

The FTC Arbuckle Staff Opinion letter says the same thing:

[url]http://www.ftc.gov/os/statutes/fdcpa/letters/arbuckle.htm[/url]