Citi Cards Attorney filing suit.

[tour of duty]

What is the name of your state? CA

I had a debt of $17,500.00 and was advised I should use a third party debt solution agency. The third parts debt solution agency advised they would settle the debt for between 40-60% and told me not to answer any calls from the credit card company or any outside services they hire.

I have since paid the full amount of my program with the third party debt solution and have been waiting for a call regarding settlement. I received a call from them advising the credit card company's negotiater offered to settle the debt (which is now $21,000.00 due to accruing intrest) for 50%. I agreed to the 50% figure and would pay the excess. Apparantly the offer was made August 29, 2007 and the payment was Due August 31, 2007. My debt solution agency didnt even advise me of the offer until Sept 4, 2007.

Now I have received a letter from an attorney office, Harris & Zide, on September 15, 2007advising they are going to be filing suit against me. I contacted the attorney office on September 18, 2007 and they told me if I don't pay $14,738.00 by Friday September 21, 2007 they will file suit and obtain a judgement against me.

I contacted my debt solution agency and they told me not to worry about it and they are going to continue to try and negotiate.

I have not been served to date but I am afraid they will either serve me by publication or to an old address to obtain a judgement against me. Also, my mother bought a house but it is in my name. She makes all the payments and I dont want any judgement to jeopordize her investment.

I have about $7500.00 in my debt collection account and offered to resolve the claim several times for the initial amount the credit card company offered on August 29, 2007 but the attorney office refused.

Should I not worry about it and let the debt solution company handle it? Do I need an attorney? What should I do in case a judgement is made against me?

Thank you to anyone who can assist me.

 

[Chien]

Harris & Zide has a reputation. They’ve been the defendant in class action suits and in individual Federal actions for FDCPA violations. I’m not saying all suits had merit. I am saying they will take judgment.

Debt solutions companies also have a reputation. Generally, it’s one of exaggerated promises and money poorly spent. I’m not saying this is true of yours, but I think Harris & Zide will ignore them.

I am saying that, unless you know differently, ignore the advice/promise of your debt solution firm, don’t wait for answers that you expected and haven’t gotten. Step into this directly with Harris & Zide, be proactive and see if you can still salvage something that works for you.

I haven’t asked if you have a defense. If you do, prepare to be served and prepare to assert it. If you don’t have a defense, prepare to have a judgment taken while your firm is trying to negotiate a solution.

It’s that black and white and your time is short.

 

[tour of duty]

Ok, thanks alot. I will try to contact them and come to a resolution before a judgement is made against me.

 

[SHORTY LONG]

tour of duty this is off the mark, but I am curious about your nik; are you in
the military presently, or did your name arrive from the TV series? Again,
just for my own curiosity. Thank You.

 

[tour of duty]

tour of duty this is off the mark, but I am curious about your nik; are you in
the military presently, or did your name arrive from the TV series? Again,
just for my own curiosity. Thank You.

It's actually the name of a band I listen to.

 

[Debt Guy]

Citi does not deal with settlement companies. Once they find out a settlement company is involved, the account automatically goes to legal with instructions to "take no prisoners".

Your settlement company knew this and should have told you. But, then you would not have hired them and they would not have gotten your money.

Sorry to bear bad news, but I think you are good and truly screwed. The law firm almost surely has instructions for "payment in full".

Settlement companes have their place but it ain't with Citi.

My advice would be to call the law firm, tell them you have fired the settlement company and now realize it was a terrible mistake. Grovel and offer to lick the soles of their shoes. They might settle for 80%.

Let me know how this comes out.

 

[annajosie]

Debt Settlement Companies

Okay, I guess I am STUPID. But can someone explain to me what these companies actually do for you (besides take your money)???

If you can't pay a debt, you can't pay it. If they are going to negotiate with your creditors (for a fee), I can't see how that is helping the debtor.

You can negotiate for yourself, or if you can't, take the money you are paying these debt settlement companies and use it to file bankruptcy. Bankruptcy isn't for everybody, I admit, but I personally think that's a better option than paying these companies.

just my opinion.

 

[Chien]

I think this is a rhetorical question, because it has already been pointed out twice that this particular company is likely to get run over.

You are right about the possibility of spending the money more productively. Problems that justify the existence of settlement firms are debtors who are intimidated by collectors and debtors who believe the promises the “professionals can work magic”, where they couldn’t themselves.

In defense of the companies, based on personal experience, I’d say 1 in 10 really tries, in the sense of being on top of communications and timely payments and attempting to rationally support the offers made. Some creditors and CAs simply won’t deal with them. As an attorney, I have an ethical obligation to take and convey any proposal (even if I expect that it will throw gas on the fire), so I hear them.

For some debtors, bankruptcy is not a viable alternative. But, debtors should understand how creditors see these “middlemen” – if the debtor can afford to hire a surrogate, the debtor is spending money that could go to them. Plus, the amount that the debtor has to offer is now going to be “divided-up”. Everyone wants to be first in line, not one of the herd. The result is often the opposite of what was intended – things escalate.

A poster here recently remarked that she hired an attorney to negotiate for her. With what that costs . . . . You see the point.

 

[TigerD]

Some creditors and CAs simply won’t deal with them. As an attorney, I have an ethical obligation to take and convey any proposal (even if I expect that it will throw gas on the fire), so I hear them.

I won't. If you have the money to hire them, you have the money to pay me in full.

DC

 

[jinky]

It depends on how old your dept as to what you can do. Having a third party handle it that was not highly recommended is not wise. Check out creditboardsdotcom

BTW, I'm not soliciting. I'm just trying to give good advice.

 

[Chien]

Check out creditboardsdotcom.
BTW, I'm not soliciting. I'm just trying to give good advice.

Jinky, you probably are well-intentioned. However, you're giving the same advice as fast as you can post it, and it's not at all clear that you're even reading the threads. You've admitted to one mistake in another, and there was an additional mistake that you didn't catch.

With luck, this OP has followed advice given awhile ago or he's looking at a judgment by now.

Read for yourself what you're encouraging others to read and then pitch in.

 

[tour of duty]

Well, I have contacted the attorney's office several times to try and negotiate a settlement. They have advised if I pay them a lump sum of $14,997.00 we can clear the debt. If not they are going to get a judgment for $21000.00 plus court costs. I advised I can give them 50% up front (money in my thrid party debt solution account) and we can set up a pay plan for the remainder over a year. Either by garnishing my wages monthly payments, whatever. I made it very clear I am open to any suggestion in paying them monthly.

They have declined and said if I give them the 50% up front they will give me two months to pay the remainder. Of Course, I cant get over $7000 in a two month time frame so it looks as if I will be screwed.

I kept trying to negotiate and tell them that I am, in good faith, trying to resolve this debt. I confirmed I took the wrong steps and listened to some bad advice obtaining a third party debt solution company. However I now am wiling to do whatever it takes, within my means to resolve the debt. It didnt work.

Thanks for all who gave me advice and if there is anything else anyone can think of that I should try I appreciate it.

 

[Chien]

Are you currently paying any other creditors, directly or through the debt solutions company, and, if so, is that for debts that have been reduced to judgments?

Are you able to calculate with reasonable accuracy how long it would take to pay the remaining 50%? If appropriate, assume more disposable income as others are paid but don’t make “blue sky” assumptions.

Existing judgment creditors can stay ahead of Harris & Zide. Existing non-judgment creditors will sue when payment plans falter.

I don’t know what your negotiations have been like to-date but, if you haven’t laid everything out for them in detail, now is the time to do it. I don’t mean “this is the best I can do”; I mean “this is who I owe besides you, this is what I’m paying, this is my income” kind of lay it out and provide documents.

Offer to give them a Confession of Judgment and a sliding-scale payment plan. What you’re offering is the ability to take judgment without filing a lawsuit and a payment agreement that increases as existing creditors are paid. Obviously, it behooves you to not make promises that you might not be able to keep.

You have to weigh that approach yourself but, if you can do it and decide to try, it makes things easier and less expensive for them. If there are people in line ahead of them and they know it, they have to evaluate whether they could do better by turning you down. If they file suit and you file an Answer, they are 4-6 months away from judgment, regardless of whether you owe or not. Judgment creditors will step up and non-judgment creditors could also sue and take default judgments. All of those get in line ahead of Harris & Zide, and they forego 4-6 months of payments. You’re playing poker with all the cards face-up. The wildcard is you responding to a lawsuit and slowing them down.

If you can’t cut a deal from there, I’m sorry but I have no other suggestions.

 

[Chien]

OP - I'm not encouraging you to take this route, if it's not "doable" for you. But if you decide to try, PM me.

 

[tour of duty]

I tired PMing you but it wouldnt come up for some reason.

To answer your question, I am not in debt to any one else. Citicards is the only debt I have. That is why I told Harris and Zide I would be willing to pay the remaining 50% over the next 12 months. They are not wiling to do a payment plan for the $14997.00. They said they might be able to work out a payment plan for the full balance of $21000.00 but the $14997.00 amount is if I want to pay it all off at once.

Thanks