Nationa Credit adujusters

[reed]

What is the name of your state? Michigan

I received a call few days ago from Debt collector called National Credit Adjusters in Hutchinson, Kansas. They said I owe money on my master card, they said theY will put a lien on my house and car and call my employer to garnish my paycheck. I offered to make monthly payments by sending a money order eventhough they were asking more than what I owe.. They refused they want me to give them my bank account and routing number and they will withdraw the money. I refused to give them my bank account, the person on the other line got upset and said they will see me in court. I was willing to work out a monthly payment by sending a money order. I don't want to give them my bank account. I am really worried that they will sue and put a lien on my house. They haven't call me since, is it possiblethat they madeuptheir mind to sue, I send them a validation letter today, Please help I need your advice on what to do.

Thanks

 

[Debt Guy]

The CA cannot do anything until you have been sued and a judgment has been awarded.

Then they can proceed to garnish your wages and levy your bank account.

Your homestead in KS is most likely exempt from attachment (unless you have more that 40 acres in a rural area or more than 1/2 acre in an urban area -- and even then they could only attach the excess). Even if they can attach, they cannot foreclose and it just becomes a lien that must be paid before you can sell.

KS has an exemption of $20,000 of equity (value less the loan amount) for a vehicle. Unless you have a paid Lexus, you really don't have much to worry about.

The CA has the right to refuse to accept payments. If you are in default, they can require the entire amount to be paid in full immediately.

Many CAs want the ability to draft your bank account. They can't make you give that information. But, you can't make them take payment by money order. So, it becomes a standoff.

My advice would be to tell them you are willing to allow monthly drafts against your checking account but only after you have in writing a signed agreement that sets out clearly the number of payments, frequency of payments and the amount of each payment and the total to be paid.

Again, you can't make them give you that agreement. But, if they want your money, they might have to bend some.

But, before you do anything, stop and think about how old this debt is. The statue of limitations in KS is five years. When did you last pay on this debt? If more than 5 years ago, your strategy would be different. My guess is that this debt might be out of statute.

 

[Betty]

Debt Guy - you gave OP Ks. info where CA is located - OP lives Michigan. Would not Mi. law apply?

 

[Debt Guy]

Betty -- you are right. It was late. I saw Kansas in the text. My mistake.

For MI, the issues are all still the same -- just different numbers.

MI allows an exemption of $30,000 of home equity (difference between value and loan amount). If you h ave more than $30K of equity, they can put a lien on the excess -- but they still can't foreclose

MI allows an exemption of $2775 of equity in your car.

The SOL in MI is 6 years. The OP still needs to figure out when they last made a payment on the debt in order for them to determine what the next step should be. Don't send money until this question is answered.

 

[reed]

Debt Collection

I sent the Debt collector a certified letter to validate the Debt, can the Debt collector sue me before they validate the Debt, what will happen if I dont recieve any validation letter.

 

[Debt Guy]

Yes, you can be sued before the debt is validated. Some think that is a violation of federal law and some districts seem to agree. But, at best such a violation is only a counterclaim and you must know what you are doing and work to make it stick.

There is an urban myth about what validation means. First, the technical term is verification -- the word validation is never used in the FDCPA.

Second, while the consumer always has the right to request verification, the CA is only required to respond under a limited situation. If you make the request during the 30 day period following the initial contact, the CA must cease collection activity until the debt is verified. If the request is made after the 30 day period, the CA is not required to cease collection activity. The Catch-22 is that the FDCPA does not provide a deadline for the CA to respond to a consumer's request. So, technically there is no way to force verification after the 30 days.

Third, verification is really pretty simple. All the CA is required to do is go the the Original Creditor and say, "Hey, does this guy owe what you said he owes?".

Fourth, and finally, there is no requirement that the OC or CA prove anything to the consumer. They are not required to provide copies of anything (statements, applications, signatures, video tapes, etc.). The FDCPA only requires they tell you (1) the name and address of the original creditor and (2) the amount of the debt.

This internet urban belief that a request for verification will put the CA on hold is just not accurate.

The best way to avoid a lawsuit is to just pay the bill -- or at least agree to a settlement (just be sure to get everything in writing before you send money).

 

[TigerD]

Yes, you can be sued before the debt is validated. Some think that is a violation of federal law and some districts seem to agree. But, at best such a violation is only a counterclaim and you must know what you are doing and work to make it stick.

There is an urban myth about what validation means. First, the technical term is verification -- the word validation is never used in the FDCPA.

umm -- I beg to differ

§ 809. Validation of debts [15 USC 1692g]

(a) Within five days after the initial communication with a consumer in connection with the collection of any debt, a debt collector shall, unless the following information is contained in the initial communication or the consumer has paid the debt, send the consumer a written notice containing --

(1) the amount of the debt;

(2) the name of the creditor to whom the debt is owed;

(3) a statement that unless the consumer, within thirty days after receipt of the notice, disputes the validity of the debt, or any portion thereof, the debt will be assumed to be valid by the debt collector;

(4) a statement that if the consumer notifies the debt collector in writing within the thirty-day period that the debt, or any portion thereof, is disputed, the debt collector will obtain verification of the debt or a copy of a judgment against the consumer and a copy of such verification or judgment will be mailed to the consumer by the debt collector; and

(5) a statement that, upon the consumer's written request within the thirty-day period, the debt collector will provide the consumer with the name and address of the original creditor, if different from the current creditor.

(b) If the consumer notifies the debt collector in writing within the thirty-day period described in subsection (a) that the debt, or any portion thereof, is disputed, or that the consumer requests the name and address of the original creditor, the debt collector shall cease collection of the debt, or any disputed portion thereof, until the debt collector obtains verification of the debt or any copy of a judgment, or the name and address of the original creditor, and a copy of such verification or judgment, or name and address of the original creditor, is mailed to the consumer by the debt collector.

(c) The failure of a consumer to dispute the validity of a debt under this section may not be construed by any court as an admission of liability by the consumer.

Second, while the consumer always has the right to request verification, the CA is only required to respond under a limited situation. If you make the request during the 30 day period following the initial contact, the CA must cease collection activity until the debt is verified. If the request is made after the 30 day period, the CA is not required to cease collection activity. The Catch-22 is that the FDCPA does not provide a deadline for the CA to respond to a consumer's request. So, technically there is no way to force verification after the 30 days.

Third, verification is really pretty simple. All the CA is required to do is go the the Original Creditor and say, "Hey, does this guy owe what you said he owes?".

Fourth, and finally, there is no requirement that the OC or CA prove anything to the consumer. They are not required to provide copies of anything (statements, applications, signatures, video tapes, etc.). The FDCPA only requires they tell you (1) the name and address of the original creditor and (2) the amount of the debt.

We are also require to provide a copy of the verification, which can be as little as a letter from the OC stating "Yes, the SOB owes the money."
DC