Pre-legal notification

[yix]

Im in New Jersey. I got a pre-legal notification from a new owner of some old debt I had with PayPal credit. The new owner is MCM (located in San Diego, CA)

The sent me a letter saying ....."If we don't hear from you or receive payment, MCM may proceed with forwarding this account to an attorney. I've been authorized to offer you a bi-weekly payment plan."....

Is this legal? and what should I do?

I'd like to negotiate, and pay 15-20% in one shot. I owe $3,100.

 

[Zigner]

Yes, it's legal. Don't expect them to accept $600 on a $3,100 debt.

 

[quincy]

Im in New Jersey. I got a pre-legal notification from a new owner of some old debt I had with PayPal credit. The new owner is MCM (located in San Diego, CA)

The sent me a letter saying ....."If we don't hear from you or receive payment, MCM may proceed with forwarding this account to an attorney. I've been authorized to offer you a bi-weekly payment plan."....

Is this legal? and what should I do?

I'd like to negotiate, and pay 15-20% in one shot. I owe $3,100.

MCM is an existing debt collection agency. Whether the notice you received is a legitimate debt collection notice and is actually from MCM is something I can’t tell you.

How old is the PayPal debt?

If you are interested in settling the debt for an amount less than is owed, you can check out the “How to Negotiate a Settlement” sticky-thread at the top of this forum. The tips offered on negotiating are written by a former debt collector who is now an attorney.

 

[Taxing Matters]

Yes, it's legal. Don't expect them to accept $600 on a $3,100 debt.

It may not be legal. If this is a consumer debt and if the statute of limitation to sue on the debt has passed then the collector has violated the federal Fair Debt Collection Practices Act (FDCPA) under the case law that applies in most federal circuits.

In that circumstance it would likely violate California law, too, for that matter.

 

[quincy]

It may not be legal. If this is a consumer debt and if the statute of limitation to sue on the debt has passed then the collector has violated the federal Fair Debt Collection Practices Act (FDCPA) under the case law that applies in most federal circuits.

In that circumstance it would likely violate California law, too, for that matter.

The portion of the debt collection letter posted by yix does not say that yix will be sued. If the statute of limitations has passed, threatening a lawsuit would be a violation of the FDCPA.

But the fact that there is a statute of limitations defense to a collection action does not preclude a debt collector from attempting to collect on a time-barred debt.

In New Jersey, if a debt collector sues a debtor, the debtor can use the statute of limitations as a defense. If the debtor does not appear in court, a default judgment can still be awarded the debt collector.

And there is no law that prevents a debtor from paying off an old debt in its entirety.

 

[Zigner]

I went on the info given. With more information from the OP, my answer may change.

 

[quincy]

I went on the info given. With more information from the OP, my answer may change.

How old the debt is, is important from a statute of limitations perspective and in regards to what MCM can do. It does not preclude yix from paying off an old debt, though.

 

[TigerD]

It may not be legal. If this is a consumer debt and if the statute of limitation to sue on the debt has passed then the collector has violated the federal Fair Debt Collection Practices Act (FDCPA) under the case law that applies in most federal circuits.

In that circumstance it would likely violate California law, too, for that matter.

It is fine. If the OP doesn't agree to paying, they may forward the account to an attorney. Of course, they may not.

TD

 

[quincy]

As a note to yix: Tiger D is the author of the “How to Negotiate a Settlement” thread that I referenced earlier.

 

[Taxing Matters]

It is fine. If the OP doesn't agree to paying, they may forward the account to an attorney. Of course, they may not.

After rereading the OP's post, I agree. The creditor merely threatened to refer the matter to an attorney. Had the threat been to sue on the debt and the statute of limitations had passed, then the collector would have violated the FDCPA.

 

[yix]

MCM is an existing debt collection agency. Whether the notice you received is a legitimate debt collection notice and is actually from MCM is something I can’t tell you.

How old is the PayPal debt?

If you are interested in settling the debt for an amount less than is owed, you can check out the “How to Negotiate a Settlement” sticky-thread at the top of this forum. The tips offered on negotiating are written by a former debt collector who is now an attorney.

The debt is from 2018 I think or 2017. I stopped making payments in April 2019 according to the paper. PayPal sold this account twice.

 

[quincy]

The debt is from 2018 I think or 2017. I stopped making payments in April 2019 according to the paper. PayPal sold this account twice.

Thank you for that additional information. The statute of limitations on collecting debts in New Jersey is 6 years so what we were discussing earlier on debts that are time-barred will not apply your debt.

You can try to negotiate a lower payoff amount, using the tips offered by Tiger D in the thread that heads this section of the forum.

IF the collector agrees to a lower amount to settle the debt, get this agreement in writing and signed by the collection agency before paying.

Good luck.