Are these collection agency scare tactics, or do I need to be afraid?

[batorideikou]

What is the name of your state? Pennsylvania.
I have had an ongoing thing with 2 credit cards as of 2 years ago. I had an at&t universal mastercard with a $2500 limit and a discover card with a $6000 limit. I got a little charge happy, and made stupid kid mistakes. Now, I was paying on them for a few months, my hours got cut at work, the bills got bigger, etc, and I stopped paying them. They were sent to collectors and they harrassed me for some time, until this week when I received a phone call. I was almost 1/2 asleep, so whenever the man identified himself, IF he did, I'm not sure, he didn't say who he was with, or at least I didn't hear it. But the heart of the matter is, he sounded very "official" and said that I was turned over to be investigated for credit card "abuse"? What constitutes credit card abuse? He called himself an investigator. I wasn't intentionally getting these and then not paying on them, things just snowballed, and etc etc. He didn't want to hear this, he just saying "Well you pay taxes, you're employed, why weren't you paying on this?" and that they offered me to pay $1700 to settle, to which I repled, they wanted it all at once, I didn't have it all at once. So then he said well they (whoever they are) are taking the proper actions to obtain a judgement against me. He then said something about "under Pennsylvania law", again which I can't remember, then he asked if I was going to be able to remit payment by 01600 hours "civilian time", today and I said no. He then told me that appropriate legal action would be taken against me and then he asked if I had a lawyer that was going to represent me in court? I said not to my knowledge, and he gave some sort of affidavit like "I am required to tell you that this information provided to you, etc etc" and said "do you have any other questions?" and I said no and he said "good luck to you sir" or something of that effect.
So my question is, being that I missed the opening, (also I wasn't the one that answered the phone, he may have given his opening speech to the person that picked up) does this sound official or like a criminal complaint filed on behalf of the credit card co. by the state or something? Or is this a lawyer retained by the credit card co so they can obtain a normal judgement against me? He used the term "credit card abuse" so I don't know what to think. I'm really really nervous about this and I'd like to have my fears allayed if possible.... Obtaining judgement and paying something is one thing, but a prison term or something is scary.

Thanks for any advice you can give,
Brad

PS: Sorry for the double post, but the title of the other one made it seem like I was actually being sued, when in fact it's just an inquiry for advice.

 

[matti422]

OK. Deep breath. And another...

Credit collection agencies are just below scum and Yankee fans when it comes to the grand scheme of things. A couple of things to think about:

1) Unless you obtained the credit cards using someone else's name (i.e. identity theft), they can not throw you in jail for not paying them.

2) They can, however, make your life miserable and destroy your credit. The "legal action" they are probably talking about is turning it over to a collection agency or suing you for the amount (civil suit - not criminal, you don't go to jail).

Do everything you can to pay them off as soon as possible. If you can't make the minimum payments, get into credit counseling before you need bankruptcy protection. If they continue to threaten criminal charges, you can go to court to get a declaratory judgment to make them stop with that particular threat. However, it might be cheaper to call their bluff - as long as you did not get the credit cards under fraudulent circumstances.

 

[batorideikou]

nono, they're mine, and I honestly do no have the $$ to settle with them at all. I have no car right now, it was destroyed in a flood, I had a reduction in hours at work, and I make just about enough to pay my bills as it is, and eat. I was advised by a local consumer advocate/bankruptcy atty to file bankruptcy after reviewing my financial status. This was 2 months ago, and the only reason I haven't so far is because it's $1000 to file and go through the process here. I'm on the verge of having scrimped and saved enough, so I think I'm going to try to next week.

 

[Tayla]

Firstly: Request from said Collection Agency a complete and valid history of your account.Look up Debt Validation Letters on the web.Make no payments or admission until you review said documents. Secondly: The law requires that you be "served" if any letigations are to commence. Sounds to me that the gentleman *recited* the mini miranda rights. The one poster is correct in that you have the option of working with the original creditors in finding a suitable payment plan. (Should you persue that avenue). My only caution on your behalf is to be versed in your consumer rights and how it impacts the debt itself. Whilst bankrupcy sounds like a drastic measure, it is also an alternative to having judgments placed against your being for 10 years (or longer) thus impeding your credit worthiness. Most collection agencies buy consumer debts for pennies on the dollar so when they are *cutting* a deal with you, its always in their favor. Be leary of such *deals* or *discounts* they try to offer. Get matters in writing and refrain from phone calls with them.