Please advise

[akeem]

What is the name of your state? FL
I received a call at my job from MBNA stating that they will be starting arbitration at the end of the month and that they will put a lien on my condo. I owe them $20,000. I was making payments every month but my husband got a heart attack and was unable to work. He had to retire and is now receiving Social security (he is 67). I am working. They want me to pay $400.00 per month which I cannot afford. I told them that I would try to pay $200 but they said that if I do not come up with $400 by the 29th then arbitration will begin. What should I do. I am willing to pay what I can afford but they wont accept.

Thanks.

 

[Ladynred]

How far behind are you on the bill ?? Was it actually MBNA or was it a 3rd party collection agency calling ??

MBNA does use arbitration, and its quite possible they may go thru with it, but this sounds like a collector threat to scare you into paying right now. IF they are going to arbitrate, you WILL be notified in writing. However, if the debt hasn't been charged-off (6 months of non-payment), its not going to go to arbitration.

Secondly, an arbitration award, in and of itself, is worthless, you could use it for T.P., it has no force of law whatsoever. They cannot place a lien on your condo with an arbitration award. The ONLY way that could happen is if they got the arbitration and then trotted that award down to your local courthouse and had it confirmed with the courts, turning it into a legal judgment.

If it was a 3rd party collector, then he has violated the Fair Debt Collection Practices Act (FDCPA) by threatening legal action they can NOT take. FL has a 100% homestead exemption - they can't touch your home at all !!

If it was MBNA themselves, they are not bound by the FDCPA, but they still LIED about what they can and cannot do. By the sound of it, what you got was an arm-twisting call to scare you, the supposed 'deadline' of 1/29 is a dead giveaway.

Do not even try to negotiate any payments with them on the phone, its useless. Tell them to put it all in writing and MAIL it to you, then hang up. If you can find out exactly who it is that's calling you it would be a plus so you can know for sure who you're dealing with and what laws apply.

 

[akeem]

Thanks a lot. The caller was from MBNA. I tried the telephone number he gave me to call back to make arrangements for payment and it was MBNA. I am behind 6 months(the end of January). I received a previous call from them saying that the debt will be charged off and then it will go into collection and the collectors will put a lien on my condo and garnish my salary. I also received letters stating that at the end of this month the debt will be charged off.

Thanks.

 

[Ladynred]

Pretty much what I thought was going on. They were just turning the screws and lying thru their teeth - as usual !!

Just remember, NOTHING can be done to attach your wages or anything else unless and until they sue you and win a judgment FIRST. Even arbitration won't allow them to do any of the things they are threatening. Collection agencies will keep spouting the same lies, so read up on the FDCPA and learn your rights and their limitations under the law. Also remember that they cannot touch your home, and any threats of that nature are a violation of the law !

 

[akeem]

I just received a letter from MBNA stating that I have until 5:00 p.m. on friday 28th before they write off the debt as a bad debt, at which time, MBNA's intentions will be to aribtrate my account and it will be referred to their attorneys to enforce my obligations under my credit card agreement and that under the agreement my account will be submitted to binding arbitratin before a neutral and independent arbitrator under the rules of the national arbitration forum where a hearing will be set within the federal district that includes my billing address at the time they file their claim and that arbitration proceedings can result in an award, which can be entered as a judgement and enforced to the fullest extent of the law, including liens against assets and wage garnishment. given my current positive assets and employment status, their decision is to arbitrate my account unless they hear from me with an acceptable payment arrangements by 5:00 p.m. january 28.

I called them and they said that my home is not protected by homestead since i have a mortgage on it and that I do not owe enough to file bankruptcy. I own a condo and donot have a mortgage.

I told them that I would like to pay but I cannot pay what they want since I am the only one employed and my husband was sick at home since he had a heart attack.

 

[cmorris]

Listen to Lady...She knows what she is talking about...

 

[Ladynred]

my account will be submitted to binding arbitratin before a neutral and independent arbitrator under the rules of the national arbitration forum

"Neutral" my eye ! They'll send it to their lapdogs, Wolpoff & Abramson who will send to the National Abitration Forum who are only another batch of MBNA lackeys. There is no way the NAF can be considered 'neutral', they do so much work for MBNA its disgusting and they ALWAYS find AGAINST the consumer.

arbitration proceedings can result in an award, which can be entered as a judgement and enforced to the fullest extent of the law, including liens against assets and wage garnishment.

Well, they can't just walk in with an arbitration award and walk out with a judgment, its not quite that simple.

given my current positive assets and employment status, their decision is to arbitrate my account unless they hear from me with an acceptable payment arrangements by 5:00 p.m. january 28.

They're going to write it off anyway. The only 'acceptable' payment arrangement they'll take is payment IN FULL. If you can't do that, you can't do it. As far as I know, no one has yet cultivated a money tree !!

I called them and they said that my home is not protected by homestead since i have a mortgage on it and that I do not owe enough to file bankruptcy. I own a condo and donot have a mortgage.

Bull**** ! The homestead exemption most certainly DOES apply and has NOTHING to do with whether or not you have a mortgage !

As for not owing enough to file for bankruptcy, more bull**** !! There are NO limits on how much debt you have to have for bankruptcy, the jerk on the phone was lying thru his teeth.. well actually the poor schmuck probably doesn't have a clue about BK law, but they're WRONG !

You live in FL, you have a 100% homestead exemption ! A 'homestead' is your primary place of residence, they can't touch your condo !!

If they're going to arbitrate it, they're going to do it anyway, no matter what you say to object to it.. and you SHOULD object if they do it. They'll win anyway, they always do, the game is rigged in their favor. There's just no way to tell how long it'll be before they actually go thru with it.

 

[akeem]

I received a letter from Wolpoff & Abramason stating that they represent MBNA and their clien alleges that i owe the aove referenced balance $21,189.09 and they reviewed the information regarding the matter provided by their client and that if i dispute the debt or any portion thereof i should take advntage of my right to dispute the debt and that when paying thebalanc ein full (which I cannot pay) or if i am unable to call their office, i should check one of the options below and return the bottom portion of the letter in the self addressed envelope they provided for my convenience.
the options are I mailed a check on ; here is payment in full made payable to the crediton. thanks for waiting; enclosed is payment i full made payable to the creditor but its post-dated a few days; i cannot call you duing the day please have someone call me. my telephone number during the day is, my telephone number during the evening is; i have made an electronic payment through the internet at their website or the W&A automated payment attendant at 1-800#; other.
This is an attemp by a debt collector to collect a debt and any information obtained will be used for that purpose.

Of course I cannot pay. What should I do now. One of their paralegals called me at my job last Thursday and she advised me to take out an equity loan or borrow from my 401 k to pay the debt of course she was very hostile. I told her that I will have to file bankruptcy since I cannot pay. She asked me why I stopped paying and i told her that my husband had a beart attack and is not working and I am the sole breadwinner.

Many thanks.

 

[Ladynred]

Well, no surprise they were hostile, but I'd be willing to bet you that was no paralegal, just some collection phone drone they hired.

If the debt were older, I'd say send them a debt validation letter, but since its fairly recent that may not be a good idea. Wolpoff will send it to the NAF for arbitration before long. They'll win ( they always do) and probably take it to your local court to turn it into a judgment.

Wages can be garnished in FL, HOWEVER, you may very well qualify for head of household status. If you provide more than 50% of the support for your family, then you'd qualify as HOH and they would not be able to garnish your wages under those circumstances. They can't touch your home, FL has a 100% homestead exemption.

So, you may want to look into seeing if you can be considered head of household, it would protect your paycheck.

 

[akeem]

should i reply to the collection letter?

 

[Ladynred]

What would you say ?? Unless you want to go the validation route, there's no point in answering them at all.