Being sued on older credit card debt

[randomguy]

I know this is going to sound radical. But have you ever thought of calling the opposing attorney and working out an agreement to pay back the money that you stole from Providian?

Why would he want to pay back the money, when it seems he has good legal defense?

 

[GoingGrey]

I know this is going to sound radical. But have you ever thought of calling the opposing attorney and working out an agreement to pay back the money that you stole from Providian?

In fact, this debt was settled with a prior collection agency years ago. The current collection agency refuses to acknowledge the prior settlement, and their lawyer, when I mentioned it, said that the prior settlement "didn't matter" because "they are not my client."

The problem is I can not CONCLUSIVELY prove the prior settlement. The Offer of Settlement letter from the prior collection agency cannot be validated because that collection agency no longer exists (in other words, I cannot produce a real, live person to confirm that this was their settlement and that it was for Providian, who was their client.) I paid with a money order, of which the original carbon copy that I retained has faded to the point it is nearly unreadable. I cannot get a copy of the money order's front and back, as demanded by Portfolio Recovery as "proof you paid," because the money order company only keeps copies of cashed money orders for two years - which is perfectly legal.

Despite all of that, I *DID* try to settle with them, and they refused to even discuss a settlement. However, after tomorrow's pretrial, when they get my cross-complaint alleging 36 WELL-DOCUMENTED UNCONTESTABLE violations of the FDCPA at $1,000 each, I suspect they will not only be willing to settle, but willing to outright dismiss.

The bottom line is simple: Whether or not I owe them any money is NOT THE ISSUE.

The issue is THE LAW, and HOLDING these and other collection agencies TO THE LAW. The issue is DECEPTION, FRAUD, DECEIT, THEFT, MALICIOUSNESS, and WILLFUL disregard of THE LAW on the part of the collection agency and their agents.

It is a matter of law, and these idiots have violated the law on far more points than I can enumerate here - and I have discovered far more violations since my original post.

 

[CollectionGuru]

Why would he want to pay back the money, when it seems he has good legal defense?

Uh, because he borrowed it and agreed to pay it back.

 

[GoingGrey]

Uh, because he borrowed it and agreed to pay it back.

I look forward to the day you walk in our shoes. It will happen.

It happens to everyone at one point or another in their life, get down on your luck, lose a job, get sick with something that takes more than 4 years to get under control, get in a major accident, cancer, divorce, death of a spouse, etc., etc., etc. The day will come for you. I don't wish it on you - I don't wish it on anyone - but it is inevitable. That's life.

At least I didn't file bankruptcy. At least I honestly settled every one of my debts over the since I got sick. Their decision to sue me on a previously settled case is beyond ridiculous.

 

[randomguy]

Uh, because he borrowed it and agreed to pay it back.

Irrelevant, statue of limitation already passed. As result legally he is not obligated to pay anything.

My rule is this, i will pay if a you can provide evidence that i owe the debt and statue of limitation didn't pass, if not i am not paying. If the collection agency keep bugging me they get c&d.

 

[GoingGrey]

Pre-Trial Conference

Had the pre-trial conference today. YET ANOTHER LAWYER! So far, they have not used the same lawyer twice. One lawyer for the original hearing, one for the motion to grant summary judgment, and one now at the pre-trial. This one apparently had not seen the prior motion, and I suspect, hadn't seen any of the prior paperwork at all. No matter.

They gave me their evidence, I gave them my amended answer, counterclaim, and evidence. Really didn't talk much at all - asked me if I'd be interested in a settlement, I said that their client had caused me much damage, and that honestly, I'm not really interested in any settlement that isn't strongly in my favor. Asked me 'how strongly?' I responded read my answer and counterclaim, take it seriously please, it is not frivolous, and then, make a suggestion. What kind of suggestion are you looking for? I said I wouldn't consider anything that didn't involve their entire claim going away and some sort of other favorable consideration for me.

We then went into the judges' clerk's office, and she handed us a mandatory mediation order. Apparently, here in Colorado, virtually all money disputes are subject to mandatory mediation. THIS IS NOT the mandatory arbitration as required under the credit card agreement! This is court-ordered, and it takes place in the court's mediation center. Cost is $100.00 minimum each party, however, I have already filed a motion to waive fees, so I thought I won't have to pay that. Turns out I have to file essentially the same form again directly with the mediation office, but that's no biggie. They gave me the form, I'll fill it out and drop it off next time I'm in town. Don't have to turn it in until 10 days before mediation, but I want to get it done quickly, assuming they will accept it.

NOTE: If you live in Colorado, file a "JDF205" form to request fee waivers. You can find a copy of it at the Court's website http://www.courts.state.co.us/ - click on self-help, click on Motion to Waive Filing fee (under "General"), fill it out. Get proof of income (pay-check works) and any other needed paperwork, and file it with the Court. Make sure you also print out "Finding and Order Concerning Payment of Fees" (form JDF206), so the judge can respond. In my case, I had to file it immediately after the first hearing, when I filed my initial answer. Judge will review it and mail you his/her response (yes/no).

Mediation is scheduled for February 29th, 43 days from now. I fully expect I'll be contacted with some kind of offer between now and then.

Here's the funny thing: Their paperwork - their evidence - included, yet again! - the SAME wrong agreements! Two separate agreements, neither one of which has anything to do with my prior account or their claim! That means that at least THREE different lawyers have reviewed their paperwork and all three have yet to examine the paperwork that supports (not) their claim! This IS a FDCPA violation - to sign letters or legal documents without "reasonable inquiry" into the legitimacy of the supporting documents. I cannot believe none of them have noticed that yet!

Also, it included about 6 months of statements, from an account I had for about five years. Two of the statements are not from my account at all. Not even my name on them - someone else's statements! (Privacy issues?) The "good" statements, combined, could be used to prove only about $450 of their now-inflated-to more than $9,000 claim. So even if I lose on my statute of limitations claim, even if I lose on the failure to provide contract issue, the most they can get is about $450. My FDCPA counterclaim is for more than $30,000, of which about $7,000 is very likely to be granted (absolutely incontrovertible).

My next step, while waiting for mediation or a settlement offer, is to go after the credit reporting bureaus. No matter the outcome of this case, I have already "won." By that, I mean this case has forced me to take control of my own financial life in a way I've never done before. I've had to fully and closely examine my credit reports, and along the way I've discovered a huge number of FDCPA issues and outright mistakes. I've learned a significant amount about my legal rights - and I thought I already knew a lot. Nope!

I really thought I was on top of things, was proud of being able to negotiate settlements on my old debts acquired after I got sick, and despite my very restricted income, paying those settlements. I was real proud of (so far at least) avoiding bankruptcy... looks like I didn't know anything...

Take a CLOSE look at your credit reports ASAP. Look at each credit card. Does the credit card report your credit limit? If it says ZERO or N/A, you need to dispute that ASAP. See, they got to report your current balance, right? Then, they got to report your credit limit. If the credit limit is zero or blank, then the equation for the credit score looks at the current balance (or high balance?) and assumes that is your credit limit. This can artificially make it seem like you are "maxed out" when, in fact, you might have thousands of available balance. This lowers your credit score! Capital One is notorious for this. Search online for a federal lawsuit called "Harris v. Experian," and also "Harris v. Equifax" and "Harris v. Transunion" - it's currently working it's way through the system, and will probably be a class action. Judge has already agreed that the practice of NOT reporting credit limits is a violation of FDCPA. Look here: http://www.myfaircredit.com/forum/viewtopic.php?p=11231&sid=63b98a3df966f662966907f929b214e4

This explains a lot. I remember when I refinanced my house five years ago, I had no late pays, no collections, nothing negative on my credit report at all. Not one thing. Perfectly clean credit. But my score was only 605, which simply didn't make a whole lot of sense. Everything seemed accurate on my report - accounts were true accounts, balances due were accurate. Mortgage broker at the time said she didn't really understand it either, but that my debt to available credit balance was very high and that probably was the reason why my score seemed on the low side. I didn't really understand, as my balances due were less than $1,000, and my available credit was about $12,000 at the time. But it made sense I guess, I vaguely remember thinking I should close some of the zero-balance cards, and actually did... I was so wrong.

It explains why the only mortgage I could get at the time was a not-bad but not great adjustable rate mortgage (which is currently killing me...was at 6.25% originally in 2002, currently at 9.25%). It explains why last year my homeowner's insurance jumped over $400 because of my credit. (I negotiated with them, and came to an agreement, so my rates now about the same as it was, but my deductible is now higher and my coverage is now lower). It explains why BEFORE I ever got sick, BEFORE I ever had a single late pay, the best car loan I could get was 19%. I remember at one point in the not-that-distant-past feeling like paying on time and all that was almost a waste of time...why bother if you still have ****ty credit, despite nothing negative?

The other day, I pulled out the copy of the credit report used to refinance my mortgage, and what do you know! All but one of the credit card companies at the time reported a ZERO credit limit, making it seem like I was nearly maxed out! And this is STILL true today on the reports I pulled last week. I've got copies of my credit reports - one per year - all the way back to 1999, and this is true on every single one of them.

WOW. I've got to get this fixed, asap! So what I need to do is dispute every one of those. The credit reporting agencies will need to update each credit limit or remove the listing. Any one they don't do that on, after I request it, is a FDCPA claim against each credit reporting bureau. Up to $1,000 each record not corrected or removed. Cannot file a FDCPA claim, for the most part, until I dispute them first. Of course, this means I'll have to continue to keep a close eye on my credit reports from now on... as is well-known, often when you get something fixed, it pops back on a few months later...

So that's where I'm at. Mediation next. Hopefully a favorable settlement offer before then. I'll keep updating ya'll, as I hope all of this helps someone else.

 

[Debt Guy]

Going

I have no way to evaluate the merits of your arguments -- clearly you are articulate and have put a lot of time into this.

Just a pointer -- the FDCPA provides for a statutory penalty of $1000 per action not per violation. You really need to re-read the FDCPA.

If opposing counsel is as clueless as you describe, they may not know the difference.

Query -- do you know the difference between an "open account" and an "open-end account" -- the reference you cite in TILA is for "open-end accounts". While a bank credit card may be an open-end account it is rarely an open account (I've posted on this subject at length with an explanation of why I believe that to the be case -- use the search function).

Most judges have ruled that bank cards are written agreements. I am only aware of a couple of cases across the country where judges have ruled differently and in those cases I am never quite sure how they came to that conclusion since there are no published opinions.

I'm not suggesting you abandon your arguments -- just pointing out my experience with the matter. Please let me know how this resolves -- it will be interesting.

 

[Amerikaner]

DG, you beat me to it. FDCPA violations are only 1K per action.


But OP - seems to me you have a great argument here...keep it goin on.

 

[JETX]

DG, you beat me to it. FDCPA violations are only 1K per action.

Not true.... The FDCPA provides (absent a class action) for:
§ 813. Civil liability
(a) Except as otherwise provided by this section, any debt collector who fails to comply with any provision of this title with respect to any person is liable to such person in an amount equal to the sum of—
(1) any actual damage sustained by such person as a result of such failure;
(2) (A) in the case of any action by an individual, such additional damages as the court may allow, but not
exceeding $1,000;

(b) In determining the amount of liability in any action under subsection (a), the court shall consider, among other relevant factors—
(1) in any individual action under subsection (a)(2)(A), the frequency and persistence of noncompliance by the debt collector, the nature of such noncompliance, and the extent to which such noncompliance was intentional;

The key is UP to $1000

 

[GoingGrey]

Going

I have no way to evaluate the merits of your arguments -- clearly you are articulate and have put a lot of time into this.

Just a pointer -- the FDCPA provides for a statutory penalty of $1000 per action not per violation. You really need to re-read the FDCPA.

Yes, you are correct, however, I find the following interesting:

Jaramillo v. Experian Information Solutions, Inc., 155 F.Supp.2d 356
“Each transmission of same credit report is separate and distinct tort under Fair Credit Reporting Act to which separate statute of limitations applies. Consumer Credit Protection Act, § 618, as amended, 15 U.S.C.A. § 1681p,”

Hyde v. Hibernia, 861 F.2d 446 (5th Cir.1988) in which each issuance of a false credit report is treated as a "discrete event" and a "distinct and separate injury," cert. denied, 491 U.S. 910 (1989)

Harris v. Equifax Information Services, LLC, 2007 WL 1862826 (D.S.C. June 26, 2007), failure to report credit limits along with high balances “can unfairly depress consumer credit scores.”

Whatcha think?

If opposing counsel is as clueless as you describe, they may not know the difference.

Query -- do you know the difference between an "open account" and an "open-end account" -- the reference you cite in TILA is for "open-end accounts". While a bank credit card may be an open-end account it is rarely an open account (I've posted on this subject at length with an explanation of why I believe that to the be case -- use the search function).

Most judges have ruled that bank cards are written agreements. I am only aware of a couple of cases across the country where judges have ruled differently and in those cases I am never quite sure how they came to that conclusion since there are no published opinions.

I'm not suggesting you abandon your arguments -- just pointing out my experience with the matter. Please let me know how this resolves -- it will be interesting.

Ya, I've found a real mixed bag in the case law regarding what a credit card is - and yes, I know the difference between open and open-end, but, like many, used sloppy phrasing there Ooops!! Honestly, I don't think opposing counsel is clueless, I think he's sloppy, careless, and just after the maximum money in the minimum time. I think it is likely he's quite smart and sharp, but too many years in the collection business has made him apathetic and likely numb. I'm not going to underestimate him. But, I will keep my fingers crossed that he continues his sloppy, even clueless, ways

Right now, I'm just getting pissed off. Spent six hours looking at cases involving the same company. 1,887 cases in Colorado. Looked at about 200 and so far, have found 47 other cases where the name on the contract filed with the complaint does not match the name of the original creditor. All of them default judgments.

That's 23.5% of the 200 cases I've looked at so far. About 35% of them appear to be time-barred ...all with default judgments ... probably much higher amount, I kinda got sidetracked by the shear number of cases filed with "sample" contracts that didn't even match the name of the creditor.

I can't call that honest errors. I call that deliberate fraud on consumers and the Courts.

And, of course, I keep getting sidetracked by side issues. The bottom line is the statute of limitations is expired. I know if I stuck to just that point in my answer, case would probably go away real fast. But I ended up finding so many other issues and problems - especially the false documents - that I had to file a counterclaim. Now have mandatory mediation. Don't get me wrong...I'm actually looking forward to it. Wanna bet it's a fourth lawyer?

Meanwhile...I'm getting disgusted.

Not related to my case at hand, but... Of the five credit cards I had when I refinanced my mortgage in 2002, FOUR of them were Capital One. And every single one of them NEVER reported my credit limits, until this very month, now 2 of the cards are reporting. And of course, all four cards are now closed, so odds are it won't make any difference to my score. The oldest card is 9 years old, the newest 7 years old, which means for the last NINE YEARS of my life, I've had my credit score deliberately depressed by negligent reporting. That my credit score has been DELIBERATELY reduced by somewhere between 20 and 30 points, best I can figure, for the last nine years of my life.

It was Capital One's POLICY to NOT report credit limits. Why? "For competitive reasons." Keep people's scores lower, and they can't jump ship to a card with a better interest rate.

Regardless, it's too little, too late. The damage is long done.

My mortgage is killing me.

I've talked with my mortgage broker this afternoon, and she gave me a copy of her file (she's a good friend)...all the underwriting paperwork, the credit reports, and a wonderful little piece of paper that is labeled "Sales Ratings." My credit score was "635 - Porfolio AMR A minus / alt doc." The "Sales Ratings" show if I had a 640, I would have been in the next upper rating - an "A." Next to each rating is listed the available "Products."

Five lousy points.

FIVE lousy friggin points, and I would have been able to qualify for a 5.25% fixed-rate mortgage, instead of this murderous 3/1 ARM that's currently at 9.25%.

I think how but for the lack of 5 points on my credit score, life could have been a lot different.

I would have gotten that great job four years ago, with a company that had medical insurance. I all but had that job, but because of my credit rating - 633 by that time, even though no late pays - I couldn't be hired. Company policy. Could have been earning $44,000 a year. I finally had my chance to get out of the pink ghetto of bartending, waitressing, retail, and fast food, but nooooo...

If I got that job, I would have had medical insurance when I first got sick three months later. I would have been able to get the medical treatment I so desperately needed and early. Would have taken a matter of weeks, months at the most if I could have started on the drugs right away.

I would never have fallen behind on my credit cards. I would never have been sued. I wouldn't have that one judgment I do have. I would never have faced foreclosure over and over again...facing it again right now. Have always managed to work things out with the mortgage company...but it's killing me. They are losing their patience. I don't blame them.

Yea, I know... slippery slope...

Thanks to five lousy points, I'm paying oh, about $250 more a month in mortgage than I could have been.

I am pissed.

The case is getting more and more interesting the more I research, read the laws, read the case law, and review my own documents. Frankly, it's beginning to really piss me off how these companies (in particular, Capital One and the junk debt buyers) have manipulated the system against us. For a company to DELIBERATELY withhold reporting information in order to DELIBERATELY lower MILLIONS UPON MILLIONS of consumer's credit score for "competitive purposes" is BEYOND malicious, beyond deceptive, beyond grrrrr....words escape me....

It's sinful.

If Capital One had reported my credit limits then, I would have had a 8% debt to available credit ratio, instead of a 85%. I owed $1116 on credit cards then, with a total $12,000 credit line between five credit cards, four of them Capital One. But it doesn't show up like that on my mortgage credit report. It shows as $1116 total balances out of $1300 available credit - 85%. All because Capital One didn't report my credit limits. How close you are to maxed out counts for 30% of your credit score, according to the FICO website. If they had, it would easily have added at least 5 points to my credit score. Maybe a lot more...maybe as much as 20-30 points.

Sigh...

 

[BHammer]

Please read the BOLD TYPE when answering!

I know this is going to sound radical. But have you ever thought of calling the opposing attorney and working out an agreement to pay back the money that you stole from Providian?

She never owned a Credit card from them....
Never made any such CC purchases!
She had a Bankruptcy in May 2000 and Providian provided her a Credit Card for $1750 in Dec 2000! Give me a break!

 

[Debt Guy]

Going

Sorry for the delay in getting back to you. You have had a really lousy streak of bad luck. You deserve a break. I hope you get one soon.

I've always thought that Capital One was about as close to a criminal enterprise as one could get and not be indicted. They have always played that game with reporting the high credit in a way that distorts the utilization rate. Yes, they did it on purpose for self serving reasons and made millions of dollars on the backs of people who could ill afford it. They have recently changed that policy. I guess they finally got tired of losing lawsuits for what they were doing. Or, maybe the regulators started putting some pressure on them. Maybe both, I don't know.

You asked what I thought the cases you cited where the plaintiff was awarded "multiple damages". I have several thoughts.

First, all the cases you cite are FCRA cases -- not FDCPA cases. It is my understanding that FCRA allows more discretion to the judge.

Second, for every rule there is an exception. Anytime anyone says "always" or "never" someone will go find an exception. I try to remind myself that I need to start using the phrase "with rare exception, yada yada".

I'm not sure what I can do to help you. But, please send me a PM if there is anything. Best wishes for good health and good fortune.

 

[TigerD]

First, all the cases you cite are FCRA cases -- not FDCPA cases. It is my understanding that FCRA allows more discretion to the judge.

Your exception: If the debtor can prove the rampant abuse is the proscribed manner of doing business and bring the FTC on board, the penalties can reach into the multi-millions. However, even in the rare extreme cases the FTC usually settles for well under $500k or less than an hour's income for companies like Cap One.

DC

 

[GoingGrey]

Thanks Debt Guy and Debt Collector - especially for your sympathetic words, Debt Guy!

I've found a lawyer willing to at least consider taking on a case against Capital One. Talked for about an hour on the phone with him today, and am bringing in all my information and paperwork (nicely organized!) to him on Monday.

The fact that I have copies of the actual credit reports and credit scores used at the time I refinanced, showing just a few points would have made a difference and showing that Capital One didn't (and still isn't properly) reporting the credit limits is the only reason he's even willing to spend any time at all on this.

He did suggest I contact the lawyer handling the Harris v Experian lawsuit/class action. I called and left a message, even though they are in a different state. My paperwork is great evidence that this DID, indeed, hurt people, not just "a bit" but a lot.

Meanwhile... after my above post about the realization that I'd been screwed for years without even a "thank you" much less breakfast (bad joke) I decided to write a letter to my mortgage company, explaining everything I believe happened at the time of my refinance, that I believe my loan was issued with false/missing information blah blah blah, and asking if there was any way they would consider renegotiating my loan so as to avoid foreclosure in the near future. (I *JUST* got caught back up, and I've got February covered, but likely I'll be short for March).

Mind you, I've asked for renegotiation before, based on economic difficulties (mortgage skyrockets to 10% two years ago, of course there will be economic difficulties!) They declined. All three times over the last two years.

But shock of all shocks... they called me today, and asked me a ton of questions about everything I wrote in my letter. Asked me to fax them copies of the credit reports, etc., all the stuff I put together for the lawyer on Monday. Said that it was "very likely" that they could work something "favorable" out for me. Spent more than an hour on the phone with me, they had me on speakerphone, so I know someone (lawyer?) else was listening and occasionally guiding the questions. Said they would see what they could do and get back to me within a week.

I smell "fear of lawsuit" Let's face it, predatory lending is all over the news right now. Frankly, SOMEONE should have noticed that Capital One wasn't reporting credit limits at the time I refinanced and questioned it, either the lender, the underwriter, the mortgage broker, or, OF COURSE, myself. But that was back in 2002, FICO scores were still pretty much a trade-secret... and the credit reports don't even show a line for "credit limit" at all if the credit limit is 0. What reasonable person - much less "least sophisticated consumer" - would question why their credit limit isn't reported if there isn't even a line for credit limit on the consumer printout? Who's going to question what isn't there, if there isn't an obvious way to know information is missing?

While I don't feel that my mortgage is "predatory" per se, it is definitely nowhere near the loan I could of or should of got. Heck, it's sitting at 9.25% right now, and my credit is so in the toilet thanks to Portfolio Recovery's "errors" in reporting and Capital One's incomplete reports and my own damn defaults ... I couldn't refinance for a 20% loan right now if I wanted to. So anything my current mortgage holder can do to help will be an improvement.

I sit here, feeling pretty hopeful that maybe, just maybe, my mortgage will go down and the lawyer will be willing to be my Knight in Shining Armor.

Please!

But if not, I guess I'll crash-course myself on District court procedures and go for it pro-se. After all, at this point, I have nothing to lose. I'm done putting up with this sh**ty system FOREVER. This time, I'm fighting back with every ounce of my absolute being. I don't care what it cost, I don't care how long it takes, I don't care who I piss off. I am holding every one of these (insert favorite curse word resembling masculine anatomy here) responsible to every single letter of the law I can. I'm DONE with this crap. I'm taking responsibility for my own lack of awareness and saying loud and clear for all to hear:

I AM HERE.
I AM A PERSON, NOT A PROFIT MARGIN.
I MATTER!
LISTEN TO ME!!!
I NO LONGER GIVE YOU PERMISSION TO SCREW ME OVER EVER AGAIN!!
​

*gets off soapbox, shakes off nerves*

Meanwhile, my answer and counterclaim against Portfolio Recovery awaits their reply. Mediation is set for the 29th February. Don't know if they will (or are legally obligated...rules/procedures are confusing on this point) to respond to my answer/counterclaim before mediation, or if it is "on hold" until after the court-ordered mediation.

I spent more time at the courthouse today, and found a shocking number of cases where false cardmember agreements and/or statements were attached to the Complaint, like in my case. Out of just over 400 cases I've looked at, I've found 97 and counting, all in the last six months, and just in my county! It's like "hey, let's go file a lawsuit and default judgment, oh just attach whatever's handy to it, no one will notice, and even if they do, they won't do a dang thing about it." The shame of it is, they are right: Pretty much no one does a thing about it, pretty much no one fights for their own rights, and every one of them default judgments.

But I'm fighting back. I'm not "no one."

I can't believe that many people never even looked at the paperwork they were served with...I can't help but believe that if they did, at least a few of them would have noticed statements from cards they never had with someone else's name on it!

These JDBers are audacious as hell.

I've found suits for Sears accounts with Providian statements, Direct Merchant suits with Sears cardmember agreements, mix-and-matches of various paperwork that has nothing to do with the account stated on the complaint... even a case where they filed suit against someone in a diabetic coma for over a year! (Answer was filed by son, case dropped).

This is BEYOND sloppy. I can't believe the Court hasn't done something...well, of course the Court hasn't done anything about it... they really can't unless a defendant brings it up in a case... at least that is my understanding. Court can't act to defend our rights unless we ask/tell them to.

One thing's for sure...they can't claim "harmless error" as a defense for filing suit with wrong/false agreement on me.

I find myself torn ... I feel that something needs to be done to bring this to light (more so than posting here) to end this ridiculous charade perpetrated on not only our Court system, but hundreds and thousands of debtors. I feel like contacting a reporter or the Bar association or some politico or something else...like calling every one of those people with default judgments and telling them to go call a lawyer and file a motion to vacate judgment... but I also feel like I should hold onto the option of making this LOUDLY public and embarrassing as a negotiation bargaining chip. And yes, I am aware of the fact they may not give a sh*t about claims of filing lawsuits with false documents being on the 6:00 news...

Meanwhile...I'll keep reading, learning, researching, and weighing my options.

And fightin'

 

[Debt Guy]

Sounds like you got your break. I am glad for you.

Are you aware of NACA (National Association of Consumer Attorneys)? This is a loose organization of lawyers who specialize in representing consumers in cases like yours.

I am only mildly surprised that your mortgage lender is willing to rethink things. Subprime lenders have been taking a lot of heat from the press and politicians lately and I don't think that is going to let up anytime soon. Hillary is talking about a 5 year freeze on rate adjustments. That would never happen, of course, but the idea of government getting involved scares the pants off these guys.

If your relationship with this new lawyer is good, I encourage you to discuss with him/her what the lender is telling you now and where you are on the renegotiation. The lawyer, if he is any good at all, should be able to negotiate a better deal and maybe even get them to pay his fee. What a country!

Never underestimate the ability of a determined person to change things. I am glad for you and wish you the best. Please keep me posted how this goes.