Sued on old cc what to do?

[emmy0821]

What is the name of your state? Illinois
I received a summons today to appear in court regarding an old credit card debt that was taken over by a collection agency. I do not believe the SOL is up, but am not totally sure if it's been 5+ years. Previously I had attempted to make payment arrangements, but the company would not accept monthly payments. My question is this...should I attempt to contact the collection agency's lawyers and try to settle this out of court (if that's even an option)? Also, I received a letter from a mediator service and wonder, if the above option is not valid and I do have to appear in court, if a mediator is a good idea or not? Thanks in advance.

 

[racer72]

My question is this...should I attempt to contact the collection agency's lawyers and try to settle this out of court (if that's even an option)?

Only if you can pay the debt in full.

Also, I received a letter from a mediator service and wonder, if the above option is not valid and I do have to appear in court, if a mediator is a good idea or not?

This means a mediator is going to hear the case, if both sides agree, and not a judge. It really doesn't matter who hears the case, if you own the debt and it is legitimate, you are going to lose.

 

[emmy0821]

thank you but..

Thanks for the advice. I do know I will have to pay the debt. I made a mistake and I acknowledge that. I was really just wondering if having a mediator handle the situation would be less costly than going to court myself. I am on a very limited income (which is why I attempted to make payments on the debt in the first place which they refused instead of paying the whole lump sum) and I'd like to take the most cost efficient route. Also, if I use a mediator, would I still have to appear in court? Appearing in court would mean loss of wages for me and make my financial situation even more difficult.

 

[Ladynred]

First thing to do - -pull your credit reports - all 3 of them, not a tri-merge - and find out exactly when you last paid the original creditor on this debt. If it's been more than 5 years, then you have the expired SOL as an affirmative defense to stop the lawsuit in its tracks.

Is this 'mediator' a 3rd party ? Is this mediator affiliated or approved/used by the courts ??

 

[emmy0821]

Actually, I did look up my reports and was unable to find a date from the original credit card company for last payment. The current collection agency shows a date the debt was reported to them, but I know it's not the date of the last payment. Also, as for the mediator, after reading your questions I looked up the company in the BBB and found no listing...what should I do?

 

[Ladynred]

Actually, I did look up my reports and was unable to find a date from the original credit card company for last payment.

Call the credit bureuas and ask them for the 'date of first delinquency', creditors are required to report that date.

I looked up the company in the BBB and found no listing...what should I do?

Not all businessess are members of the BBB. Call your state Attorney General and see if there are any complaints or other info on them. I'd also call the courthouse and find out if they know anything about these 'mediators'.

 

[emmy0821]

Ok, I called the credit bureau and they stated the date of first delinquency was same as the date reported so the SOL isn't up until 1-2007. The mediator I spoke to didn't really seem legitimate. I have been looking at other mediation firms, but the court date is drawing close at 8-1-06. Should I contact the plaintiff's lawyer to try to work something out of court? I'm really going crazy over what I can do with this. As I said before, I have limited funds and having to go to court would only aggravate my financial and mental situation. Is there any other road I can take with this case? And, if, by chance, I cannot make it to court, what sort of actions will they take on me? Thanks

 

[Ladynred]

I dunno about that. Date reported could be TOMORROW if they were to report something tomorrow. I would not take them at their word for that, they are just phone drones. DOFD is required by law and should somewhat be close to the date of last activity too. If you paid this account by personal check, your bank should have those records.

You don't have too many options I'm afraid. You can call them and try to work out a settlement/payment arrangement, but with a court dated so close they may not be too willing to make any deals. It's hard to say. The final alternative is bankruptcy.