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Need Advice on Dealing with Collection Lawyers

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S

SKM

Guest
What is the name of your state? New York City

I had a credit card with Citibank that was charged off in March 2002. I was then contacted by a collection agency, but I refused to deal with them (they're so mean!) and instead have been making monthly payments to the creditor all this time. Two weeks ago I got a summons & complaint in the mail from collection lawyers representing Citibank, saying that I owed a balance of $1443 plus 20% attorney's fees of $274. The ironic thing is that I borrowed money from family/friends and paid the $1443 a few days before I received the summons. I have the personal checks cashed by Citibank to prove this.

I called Citibank to get the whole thing dismissed and have them send me a settlement letter, but they told me that at this point I had to deal with their lawyers. I called the lawyer's office this morning and told them that I had already paid the balance to Citibank and that I want to pay the remaining fees to avoid going to court. But they told me that I now owe them $401 (instead of $274). Apparently, there were court fees, interest, etc. that have been added since the summons has been issued. I asked them to send me a letter, saying that if I pay the $401 that my account would be settled and the suit will be dismissed. The person I spoke to said that she won't send me such a letter and that it's all outlined in the summons.

I'm a little skeptical about paying that amount without proper documentation. After I make my payment, they could come back saying that I owe more! What steps do you think I should take next? I'm thinking about sending a certified letter saying that I'm willing to pay the $401 to settle the suit out of court, but I will need a letter from them with the exact balance. Does this sound reasonable? In the meantime, I'm planning on answering the summons denying their claims. If we end up going to pre-arbitration, can more fees be added?

Thanks in advance for any/all help!
 


Dandy Don

Senior Member
So have you actually read the summons to see if what they are saying is true? Your fear that they would come back later requesting more money is not justifiable or reasonable. Paying the $401 is the best way to get this off your back, or go ahead and lose time off of work to go into court and explain your side of the situation.

The time that your payment was received is what is messing up this whole situation--they had probably already started the process of filing the court papers before your payment was received.

Communicating with them by sending them certified letters is not going to get any type of results--they will stupidly continue to ignore your input--since this situation has gone as far as to go to court, they will only consider a court outcome to get it resolved.
 

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