How to Settle Credit Card Debt with a Judgment
One of my credit cards I fell behind with sued me and has a judgment.
Can you settle credit card judgements like other debts
—Stressed
Short answer
Yes, a judgment can still be settled. Settlements can be negotiated at every stage of the collection cycle, but settling before a lawsuit is filed is easier and usually saves more.
Key points on this page
- Settlement is possible at any stage, including after a judgment has been entered.
- The largest savings usually come from settling with the original bank after a few missed payments.
- A judgment is enforced through bank levies, wage garnishment and liens on real property.
- Judgment balances keep growing at the interest rate set by the court, and most states allow a judgment to be renewed, often ten years plus another ten.
- Wage garnishment removes most of a creditor’s reason to negotiate, so act before it starts.
- If you cannot fund a settlement, bankruptcy can stop a levy, a garnishment or a lien.
The short answer to your question is – YES! CRN does assist in settling debts like credit cards where there was a lawsuit and then a judgment entered against you. Settlements can be negotiated at all stages of the collection cycle.
There are challenges to settling credit card debts that have reached the lawsuit and judgment stage. Before I address the challenges, I want to point out that the best time to settle credit card debts is before a lawsuit is filed, and even before the account is placed with a debt collection attorney.
Watch my brief video about some of the differences between settling credit card debts with your bank and debt collectors compared to negotiating with collection attorneys whether they have a judgment or not.
While this may not be instructive to your judgment debt, you may have additional credit card debts that have gone unpaid and I want you to be aware of the following:
- Settling a debt with your original creditor (the bank you had the credit card with) after having missed a few payments is not only possible, but in your best interest. In fact, reaching settlement early will often achieve the best savings result when negotiating is done correctly.
- You may end up with credit cards that are charged off and placed with outside collection companies. This is the next best (sometimes the best) opportunity to settle a credit card account you could no longer afford to keep payments current.
- If your overdue credit card account lands in a collection attorney’s office, you can still settle the debt before any court action is filed, or at a minimum, negotiate favorable payment terms.
There is a science to navigating the collection stages I briefly outlined above. Timing, balances, who your credit card debts are owed to, and your ability to come up with the money needed to settle the debts – all will affect the strategic design of which account to settle with first, second, third etc…. It is important to have a plan to follow if you want to systematically and successfully settle debts and save the most money in the process. CRN is excellent in assisting people in this regard.
If you want to learn about how to settle your debts no matter what stage of collection you are in, we have a ton of resource pages to help you. I recommend starting at the beginning of my debt settlement section.
If you are floating out there with several unpaid credit card accounts with no real financial resources to handle the situation, or a plan for doing so, you owe it to yourself to learn if you would be better off filing for chapter 7 or chapter 13 bankruptcy before a lawsuit is filed, or now that a judgment exists. You can consult with a bankruptcy attorney for free. I recommend talking with more than one.
Collecting on credit card judgments can be challenging too.
The primary ingredient found in any debt settlement recipe, whether there is a judgment or not is… money. If you have enough of this ingredient you need to be aware of a few things.
A judgment is just a piece of paper. It’s the court sponsored enforcement of that piece of paper that is the problem. You could end up with liens placed against your real property, your bank account levied and wages garnished directly from your employer. There are even instances where a sheriff can show up to take a look around at your “stuff” and inventory personal items that can be taken to satisfy a judgment (this happens, but relatively rarely).
Judgment debt, whether past due credit card bills, personal loans, medical bills and other debts, are easier to negotiate and settle while maximizing your percentage of savings results if:
- A bank account to levy cannot be found because one in your name does not exist, or does exist but is maintained with little money in it;
- If a W-2 wage source cannot be located to garnish and;
- Where there is no real property lien, or where the lien is filed, but has been in place for some time and remains unpaid.
The one thing you can control is whether you have a bank account with your name attached. If you do keep a bank account open, realize most bank levies are attempted at the beginning, middle and end of the month – when you are most likely to have deposited a pay check, or other money to cover bills.
If you have sources of funds electronically deposited, you may want to elect to have paper checks issued to you until the credit card judgment debt is resolved.
The lien on property will generally not involve forcing the sale of the property in order to satisfy the judgment. You should look to resolve the judgment prior to selling the home (negotiate a settlement before listing if possible), or refinancing (settling before a lender does a hard credit pull is often best).
Wage garnishment is a major concern. Once your wages are attached the creditor has little reason to work with you at resolving the debt for less because they will continue to get paid unless:
- You prove you meet garnishment exemptions in your state
- You leave that job
- You satisfy the judgment
Warning: Your credit card judgment debt grows from interest and can often be renewed!
Interest is accumulated at the rate set by the court, or the maximum allowed by law in your state for judgment debt. While you may be able to be creative in how you avoid paying the judgment you must realize that the balance of the judgment is likely increasing.
If you are struggling with overdue bills and other expenses and are unable to come up with a plan to get rid of the judgment or lawsuit through a negotiated settlement or payment terms you can afford, the fact that the debt is increasing should concern you. Stop and consider what your options to resolve the credit card judgment will look like next year. The year after that.
Judgments do have a “best collected by” date, but can be renewed. Judgments have a shelf life with a time frame specific to your state. Most states allow for a judgment to be renewed prior to expiration. For many, this is a ten year time line and renewal allows for an additional 10 years. That’s a 20 year shelf life!
Identify all resources you can tap to fund a settlement offer or payment plan successfully. If you cannot reasonably come up with the money to settle the debt, or make payments after reaching agreeable terms, look to bankruptcy to stop a bank levy, wage garnishment or lien on property.
Those are the unfortunate realities.
I highly recommend anyone with a judgment, that needs to be resolved in order to buy or refinance your home, to watch this video interview I had with a former debt collector: https://youtube/QpdDks73QUw
It is always best to put a plan together to address delinquent debts before a judgment becomes the concern and you are forced into crisis mode. If you have other debts, you can still put a plan together that includes resolving the judgment too, but it is important to not waste any time in doing so.
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About Michael BoveeMichael started CRN in 2004 with a mission to provide people in need with detailed debt and credit help and education. Michael has participated as an expert panelist in federal consumer protection rule making, collaborated on state law changes governing debt consolidation, has worked as an expert witness in court matters related to the debt relief industry. He is available to speak with you about your financial struggle and helps people resolve their debt problems daily.
I am judgement proof because my only source of income is Social Security and I do not own any real estate. But never the less I accumulated approx $30,000 of credit card debt.
I am resident in California and most of that debt has timed out under California’s rules because my last payment to those credit cards was in September 2012. But Bank America, through FIA Services did go through a suit and did obtain a Judgment for $3,000, and that still stands as being open.
I did not attempt to settle with them previously as it was my opinion that if I had settled that Judgement I waould have alerted the other creditors to the fact that I might settle with them if they got a Judgment also. I don’t know if that was sound reasoning, but that is why I did not settle things up with them previously.
I have read a fair number of postings on this site and by reading those cases I understand that it is likely that as the Law Firm has attempted to collect on their Judgment for the past two years and they have gotten nothing for their efforts… It may be that now is the time to negotiate a payment, so as to settle this Judgement. My Question is : Can Your Service handle this negotiation for me?
CRN, and yours truly, stopped offering paid coaching and negotiation services to the public some time ago. You can still connect with a couple of the CRN specialists though. Fill in the the contact box in the right column and submit. I will get that over to one of them, and they can consult or work with you independently. I can also highly recommend Jared Strauss from AvoidBK. You can learn a bit more about him in this interview I did with him: https://consumerrecoverynetwork.com/former-debt-collector-helps-settle-credit-card-debt/.
For clarity, when were the last payments made on any of these accounts? One way I read your comment is to imply you last paid on these accounts in 2012, and not just that there was a judgment with FIA Card Services entered at that time.
I have recently become aware that I am being sued from discover for $7000. I do owe this debt and must admit that I have ignored many of discovers phone calls in the past due to lack of income which I know was a mistake because now the debt has obviously been passed to an attorney. There was a certified document sent to me which I have not yet picked up due to my work schedule and they need me present to receive these documents. I contacted the post office to see if they can hold the mail a little longer and they informed me they cannot do so and will be sending it back to the magistrate today. I know what this is about because I received a letter in the regular mail from an attorney stating there was a class action against me and they can help declare bankruptcy. The problem is I really don’t want to have to do this if I can help it.
I called discover to see where the debt was sent and called the attorney’s office. She told me my options and I think I’m going to have to go with a payment plan. The truth is I’m scared to death and embarrassed about this whole situation. My main question is…will there be a constable coming to serve me with these papers or can I request to have them sent regular mail so I can actually receive them in a timely manner? I already know the court date is set for next week because that’s what the attorney’s office told me. I just don’t know where to start.
It sounds like you want a payment plan. Just know that they will want you to consent/stipulate to a judgment anyway. Did you talk about what you can afford to pay? Have you thought about how you might be able to pull together half-ish of the amount owed in order to try to negotiate a single lump sum payoff (and avoid the judgment all together)?
I do recommend you connect with an experienced debt collection defense attorney. Most attorneys practicing in this area of consumer law will offer a free initial consult to cover the basics, and your options once more about your situation is known. I can help you locate an attorney or three to talk with. Post the name of a nearby larger city.
Hi Michael – I spoke with you a few years ago. I just wanted to follow up and say you truly changed my life. I was gripped with powerlessness and fear prior to our conversation, which you have no idea how much that meant to me at the time, and I realized you were not paid to do. What you do changes lives and I thank you.
In case anyone is interested in how our debt went and what we did as we followed Michael’s advise here goes. To give a quick summary of my problem during our move my husband was nearly killed in a truck accident. He went months without his employment because he worked manual labor and we fell behind on absolutely every bill and stopped paying about 5 credit cards. About a year and a half after we stopped paying two of the Capital One cards sued us. At that time, after speaking with Michael, I called and settled both for about half the amount. Oh, good mental note! We were also sued at the same time in another state for the exact same bill, so that collection agency had sold the debt AND sued us anyway! Ugh so Michael advised me to send the court a letter stating we do not live in that state, they do not own the debt, and demanding the court drop the suit, which they did. So, then there were 3 cards left. I was sued by another about 3 years after I stopped paying on the card and settled for monthly payments for 10 months (Capital One). Now I have two left and will be calling them to make payment arrangements now that we are in recovery mode and appears we will be keeping our home as well.
So, I just wanted to give a heads up that you gave me the courage I needed and your advise was incredible to me, you are a very kind man and thank you for all that you do. If there is ever anything I can do for you please let me know.
Tracy – Professor in Florida 🙂
Thanks for posting that Tracy! You made my day.
I stopped taking paid files in the earlier part of 2013. One of things I miss most are the exit interviews I personally did with all CRN members the last few years. It is the most rewarding part of this work, and why I continue with this stuff.
Just pay it forward. If after all your debts are totally resolved, and you have a little extra to give, think of this site if you donate to your local low income legal aid office, or to your local food bank (in the form of non perishables).
I went to a debt relief source after I lost my job and was going through a divorce approximately 18 months ago because I was left with all of the unsecured family debt since I have possession of the home due to domestic violence. The company contacted every creditor listed and told them that they would be negotiating my debt. They have done a good job thusfar and Im more than halfway out of debt. Now Capital One is suing me for a very large sum (we used it to help put my son through school) and I have obtained a lawyer but I dont want to be naive about what is happening. Im in Pennsylvania and it is my understanding that they can take my savings account (I dont currently have one) and maybe my car (my parents purchased it so Im titling it back to them asap). The house is in both my ex husband’s and my name and he isnt on the card (he had me take it out in my name years before the divorce). I want to make payment arrangements independent of the debt agency to get this monkey off my back but Im trying to understand what is going on and what I do next.
Where is the lawsuit at as far as progress (answer to summons filed, discovery, pretrial)?
What amount of money do you have in escrow for the settlement company right now, and how much are you adding to that monthly?
Is there anyway you can tap additional resources in order to offer a lump sum settlement to the Capital One attorney, as opposed to setting up payments?
What has your attorney advised?
Hey Michael,
Yesterday I recieved a phone call saying that I had a credit card that I had stopped paying on in 2008. They say they are sueing me and taking my bank account if I don’t pay either 403 by oct 23 or I can 100 then 50 a month totaling 1200 or pay over 4000 if it goes to court. I pulled my credit report and there’s nothing on there. Do I pay them or is this a big scam? They said they would email me a settlement letter and I still haven’t gotten it. Please help I’m in Va.
Nichole – Threat of lawsuit and taking your bank account immediately raise my concern you are being contact by a scammer. But you could also be dealing with an very poorly trained debt collector.
What is the name of the collection agency and the phone number they called you from, or provided to you for use in reaching them?
They didn’t give me a name for them but did give a phone number to return their call 866-664-6473. They are telling me first bank of delaware is who bought the debt. however I did pay the first $100 and it’s coming up as american acceptance pueblo west co. Should I contact my back and cancel that charge it’s still processing
Scam alert there. If you simply look that number up you will see a LOT of red flags and similar stories. Michael is probably far more qualified to comment in depth on whether they could have an old, but real debt or could do something about it, but garnishment or suing takes a lot of work and these people seem like they are looking for a quick buck. I would contact the bank ASAP and get something in writing if you really suspect you owe something. Nobody but scammers put on the “you must do this immediately” pressure…
I would cancel any payments immediately.
I HAD CREDIT CARD 2001 AND I NO LONGER LIVE IN NJ I JUST MOVED TO FL AND THEY SENT PAPER WORK TO MY OLD ADDRESS CAN THEY SUE ME STILL
When was the last time you made a payment to anyone on the account at issue?
I just found out couple of weeks ago
It’s it a bad idea that I agve them my job address
I would not have given my job address. But that would be because I would not want my employer receiving my personal mail or phone calls.
You did not answer when the last time you made a payment on this debt was?
Hi Michael, I had a credit card debt back in 2007 that I did not pay due to financial hardships. I let this go for years thinking that they would not ever collect which was a bad mistake. I was recently told by my employer that Garnishment would start on my next check. A default judgement was given to the creditor (CITI). They did not personally serve me and the first I heard of the lawsuit/ garnishment was with a letter from my employer advising of the garnishment starting.
I submitted my reply to the garnishment and requested a hearing. I also submitted a motion to vacate the garnishment due to not being served and not having a chance to reply/respond. I also mention that the original debt was about $6k and now the default judgement is about $16k. What else can I do to stop the garnishment or better yet, settle with the creditor for a smaller amount? Taking 25% of my paycheck for the next 3 years will really hurt me. (single, no children). Hearing will be in a few days.. waiting for the court date. Thanks for the help.
Judy – In situations like this it can be so worth the cost of having an attorney assist you. The type of attorney that has deb collection defense as aprt of their practice will typically offer a no cost initial consult. Let me help you find one to speak with. Just post the name of a nearby larger city.
Was Citibank the named plaintiff in the judgment, or is it another name (like a debt buyer)?
good day. may I know what is in chapter 7 & 13 bankruptcy? where can I find to learn from it. thank you very much.
From your earlier post, I know you are in the Philippines. Are you looking at filing bankruptcy in the states for debts incurred here? Do you plan on returning to the US?
my bank account was levied two days ago by Moore Law Group. I am not sure which creditor they are representing as I have not paid on any of my old credit cards since 2007, in 2008 I lost my home to foreclosure when I lost my job. Is there any reason to try and fight with Moore Law Group to try and get these funds back, or let them take it and just keep funds in someone else’s name. Can they take your car if it is paid off?
thank you
What state are you in?
Michael,
First, my first posting wAs deleted. Just wondering why…
Anyway, this is my dilemma:
I am in Missouri, the suing firm is Gamache and Mayers, plaintiff – Capitol One, debt $2300. I received summons for October 27. I was aware it was coming because of the earlier mail from other lawyers offering help. I contacted the reputable attorney to see if bankrupcy was a possibility because of other debts, mostly medical bills from breadth cancer and other problems. To make it short it is not the option right now for numerous reasons. My question to you is, should I contact the plaintiff attorney to try to settle before the hearing or wait till then and settle in court? I would like to offer lump sum payment but can only effort about $1500-1700. Do you think that sounds reasonable? My gross verifiable income is only $1100/month. I am getting 15% of that garnished already for student loan debt. I am trying to read and educate myself how to deal with this and just cannot figure it out if there is any advantage to call the suing party before going to court and discuss settlement. They did attached the note saying to call them if I “would like to arrange to pay debt”. Would you please help me to decide and maybe present both scenarios.
Thank you so much,
Agnes
Your original post is still above. You posted as Suzie.
If it were me, I would call and see if I could settle with Gamache and Mayers and get the case dropped. I would want them to know about the garnishment I have for other debt, and that they would be in line waiting to get paid for a long time.
If I could not reach a deal, I would work with a consumer law attorney, or legal aid office, answer the complaint and buy myself several months to come up with more money for the settlement.
Thank you Michael.
What do you think would be reasonable settlement? Do you think it makes sense to try for $1500. So maybe I can end up with $1700-1800.
If this is Capital One suing 50 percent may be as good as it gets. 60 percent is not a bad outcome to negotiate, and would be the more realistic target. If the lawsuit is for 2300.00, I would start at 1100 and work up a bit.
You do not have to reach a deal to settle on that first call.
Hello Michael,
I have been suit for cc debt by Capitol One. The plaintiff attorney is Gamache & Myers, am in St. Louis Missouri. I knew about this for about two weeks as I received letter of “help” from not related attorneys. In the meantime I seeked advise of reputable lawyer as I was wondering if I should file bankruptcy since I have few thousand in medical bills also which came from numerous health issues breast cancer included. Anyway , the debt to Capitol one they are suing for is $2300. The court date is Oct 27. The summons came with note attached to it from Gamache & makers saying that I could call them if i ” would like to arrange to pay debt”. My question to you is (if you don’t mind advising me) should I call them and try to settle or wait till we are in court. I would like to try to pay all but cannot all $2300. I was hoping to negotiate about $1500-1800. Btw, bankrupcy is not right now as I am separated and have other complicated issues. My verifiable gross income is only $1100 per month and 15% of that is oak ready garnished by student loan debt. I have been reading your blog everyday trying to educate myself how to deal with this but still would like your advise. Is there any benefit to me to call Gamache now or better to wait to court date? If I should call them should I insist on talking to the attorney instead collection clerk?
I appreciate your help,
Susie.
Ideally, I would try to connect with a legal aid office in your area first. You may qualify for help at no, or low cost.
If you call today,and share the details of your financial hardship (limited income, separated, already garnished for student loans), it is possible to settle for half=ish. My experience is that you have better odds of getting lower settlements once you answer the complaint.
Calling and talking to a paralegal, or the collection support staff, when your goal is settling, will often lead to the same result as talking to the attorney for CapOne. There are certainly exceptions to that though.
I only have two emergency room bills on my credit report.
If those medical bills are showing as unpaid collections on your credit reports, you will have a better shot at getting approved for new credit when those are updated to show resolved.
I do like the credit product and credit score matching system over at credit.com. Check that out when you are ready.
Thank You for your informative reply. I was also wondering since i settled and paid delinquent credit debt do you think ill be approved for another major credit card in the near future if i apply?
Were there other recent collections on your credit reports, or was this the only one?
i was about to be summons to court for a 1700.00 dollar hsbc credit card. the original amount was 1400.00 but they tagged on court filling cost. I called up Cach collection who refered me to third party Scherr and Mcclure attorney collections who now has debt and settled and paid 1200.00 i am still waiting for funds to clear as i paid over phone with debit card. ( i was relunctant to use my debit card for fear i was being scammed) they emailed me a settlement proposal and said after funds cleared they would email me a settlement letter and report pay off to hsbc. Im am wondering first if i will be taxed the difference of 5000 from irs and since i paid it off will this improve my credit score. and also if i write to credit agencies challenging these accounts were creditors have to proove accounts are mine and they cant or dont, and accounts with debts are erased; can creditors still sue me in court if debt is not on credit report. oh and since i paid it off you dont think thed try an sue me again over same debt do you?
Virtually any forgiven debt that results in more than 600 dollars of savings to you can be taxed as income (except in bankruptcy). See this article for more details: https://consumerrecoverynetwork.com/debt-forgiveness-taxes-settled-credit-card/.
You can send credit report dispute letters. There is indeed a requirement for your dispute to be investigated by the bureaus. If they do not get any response to your dispute, they will often remove the item from your credit report. The communication with the company sending them information is often just electronic pinging, and while proven to be flawed, it is still the primary way disputes are investigated. I would not rely on credit report disputes to deliver improvements when the information showing on your credit reports is accurate and current, and just negative stuff you want deleted early.
Creditors are not prevented from suing you by credit reporting laws. The time they have to sue is governed by state law. What state do you live in?
If anyone tries to collect on this debt after you have negotiated and paid the settlement, let alone sue to collect, post an update and lets go from there. It should not happen, but if it did, it would be due to mistake and quickly fixed.
i just pulled a copy of my credit report for the first time in many years…i knew it looked awful and simply stuck my head in the sand, quit using credit, and quit using banks at all.
I decided it was time to be a grownup and deal with the mess, and started looking…i discovered that apparently Capitol One successfully filed a judgement against me back in 2007.
I have no idea, at this point, who holds that debt, or what the process would be if I wanted to pay it off. I don’t even know who to start contacting.
If I did anything on it now, I would have to make payments on the debt. Would it be better for me to simply wait until I have enough to pay it off in full, and then start contacting people? Or should i start contacting them now and see if they would accept a payment plan? And, in this case, who do I even call? The courts? Capitol One? All I have is the info listed on my credit report, which doesn’t include any contact info at all….
I’d like to make it right and make up for the mistakes of my past self…but I don’t even know where to start, and the silence on this has been deafening for all these years…
Suggestions?
What state do you live in? The answer could tweak my feedback.
Generally, start by contacting Capital One, as the attorney they used may not even be part of their network any longer.
I would not look to establish contact now if you cannot follow up on anything other than payments, unless you are concerned about wage garnishment, or a bank account levy. Instead, I would wait to have, or have immediate access to, about half of the judgment balance.
Be prepared for the judgment amount to have grown with the interest set by the court.
Are all of your debts that old?
I’m in Alabama.
yes, all my debts are that old, to where most have fallen off my credit report entirely. This one is actually set to do so near the first of next year, so I’m kind of glad I caught it rather than be surprised later.
I figured there would be interest added on, Alabama caps at 10%, so worst case would be about $2000 on the $1200-something they won judgement on. I’ll prepare for that and make sure i have funds available before I reach out to anyone.
I’m only concerned because I just recently financed a car (as in, last month) which means that things pinged on my credit again, which might have them crawling out of the woodwork to contact me. This is actually the SECOND judgement I found, the other appeared in the form of a letter from an attorney’s office talking about wage garnishments. I’ve already made settlement and payment on that, which is why I have no more chunks of cash laying around to settle this one.
i must say that i’m baffled and bewildered, mostly because I never remember getting served with any notices for court dates….but at the same time, that was an awful period in my life, and I lived in a horrible apartment complex with scumbag neighbors. There’s no telling who they gave paperwork to who would never have bothered to inform me about it.
Hopefuly I can get all this sorted out soon… 🙂 I’d like to actually have a functional credit score at some point.
Your well on your way to improved credit with the amount of time that has passed.
The other debts that did not end up in court will have passed the SOL to legitimately sue, so there is less a concern you wake those bee’s to buzzing. But the judgment creditor is another matter.
How long will it take to save up what you need to offer 50%-ish?
Absolute worst case, for me, it would be sometime in December…my company offers a Christmas bonus each year that should put me well in the way to be able to offer half, if not the entire amount. Would be nice to actually use that for Christmas, but would be nicer to not have this hanging over my head….
I’m a commissioned sales rep and never have two paychecks the same, so not sure if I didn’t count on the bonus money…we’re getting into busy season for my industry, so maybe 3-4 months or so if things go well.
I think it’s close enough that I’ll wait and see if anything nasty shows up in the mail, and if not I’ll attempt to contact them as soon as I have cash in hand.
Thanks so much for the quick responses!
Best of success!
Messerli and Kramer filed suit for a capital one account back in 2010 and received a judgement against me on a $500 credit limit for $1700 which they are adding interest to.. They claim they represent capital one and are not debt collectors. I am also receiving notifications from a debt collector called Portfolio Recovery Associates. The attorney is not willing to negotiate, however the collector is offering less than half the judgment amount. If I pay the collector, can I show this a proof that I have settle the judgment? I’m trying to purchase a home and the attorney is refusing to settle and wants full amount.
That judgment in the court record would trump anything Portfolio Recovery Associates is trying to collect. You will need to deal with that (getting the court record to show the judgment is paid/resolved), in order to move forward with your home ownership goal.
Just because Messerli and Kramer are an attorney firm does not mean they are not debt collectors. They are.
The other collector, Portfolio Recovery Associates, has a bogus debt they are trying to collect, if they indeed bought the Capital One debt you were already sued for. I would file a complaint with the CFPB about the bogus debt collection from PRA here: https://www.consumerfinance.gov/complaint/. Your complaint should target PRA, but also include Capital One if they sold a debt they should not have. And there is no other explanation if Meseerli says they work directly for CapOne, while PRA is a debt buyer.
Let the CFPB help you get to the bottom of this through the complaint process, while helping them to add to the stack of reasons to regulate the process of debt collection and debt buying much more actively (which they are smack dab in the middle of writing new rules for).
The attorney debt collector may be holding out for all of the money if they can see your credit is being run for the purpose of obtaining a home loan. And there are other reason collectors will hold out for more, or all the money owed. You may just look highly collectable. But I suspect the latter.
I had a default judgement against me in Jan 2008 for a Providian credit card. The lawyers involved were Erskine & Fleisher. I live in Florida. I was making monthly payments but when I retired I called and asked for a reduction which they refused and I just couldn’t keep up the payments, they then filed suit. I believe the total is now around $4 or $5,000. They tried to levy my bank account but because I only had social security it was exempt and being retired they had no wages to garnish. I am however concerned that in the next few months I will be paying off my car and wonder if they can seize it. I have read cases where the sheriff just shows up with a tow truck and they take the vehicle. I can’t afford to replace the car and also wonder how much I should offer to settle the judgement. I recently lost my daughter to ovarian cancer and have a little money left from her insurance.
Florida has a 1,000 dollar auto exemption. There is up to 4k more you can apply to exemptions on your car, but that additional amount would likely need to be left over after covering exemptions on your personal and household stuff.
An older judgment like this I would target for settling at roughly 50%.
Dear Michael,
I have had a judgement against me for nearly $5000. I have signed a payment agreement for $200 per month, but after making 4 payments of $200, I have saved up about $3k and would like to offer them that as a settlement. Is it too late because I’ve already signed an agreement saying I’d pay $200 per month? I figured it’s be better for them to receive a lump sum than to have a payment stretched out over forever, but I just want to know how likely you think the attorneys are to settle at this point.
Thank you in advance for your wonderful advice!
If you call them to renegotiate a lump sum pay off, I would approach it as something like:
“Back a few months ago I did talk to some friends and family about my situation. One who could not help much, suddenly offered to. I can get you 3k to settle the judgment right now” – or something like that.
Debt collectors tend to want to get paid sooner rather than later. Judgment creditors won’t always act on good settlement offers, as they have leverage.
Post an update with how you progress.
Michael,
Thank you so much for your swift reply and great advice. I’ll be sure to let you know how it turns out!
HI, got a call from a debt recovery center today that said I owed $1100. and the original debt was to capital one. I did have a card and was unable to pay it due to to much going on financially at the time. the original debt was 500. . I don’t recall being taken to court for this or summoned. This was from 2002. the person that called me today was rude and did not want me to talk and told me if I would not be quiet then the call was over, I was telling them that I didn’t know for sure if they had the right person because I didn’t own that much. And was questioning the time since it has been 12 years naturally I didnt recall all of the details. I am wondering if they can garnish my husbands paycheck or take our truck . we don’t have a bank account as his check goes straight to a debit card from his work and my name isnt on the account. i have a secondary card from them but it has a different account number. I plan to pay this but we have little income, I am ill and cant work and my husband is ill but he is working so money is really tight. thank you in advance
I am first inclined to believe this is a scam debt collector. The name “debt recovery center” rings a bell as a company name used for this type of scam recently. And legitimate debt collectors do not tell you shut up or the call is over.
Do you have the number they called you from on your caller ID?
yes I do. it’s 620-860-1566
Every thing I found related to the number speaks to over the top debt collectors.
I would encourage you to file a debt collection complaint with the CFPB here: https://www.consumerfinance.gov/complaint/.
Be as descriptive as possible in your complaint. Give details about the conversation, and even to the minute, the date and time of all calls.
Please post an update here with any outcome.
I do not think you should let this bother you, but always get this kind of stuff in front of someone in a position to look deeper into it (like the CFPB or a state agency).
thank you very much! I will contact them and post my update here.
I had a judgement placed on me in 2011. arrow finacial servered a relative who did not live in my home and they also did not tell me about the served papers. I found out about it when applying for a job that i never could get due to the judgement..I have spoken with LVNV and i have to come up with 700.00 by friday the 26th to settle this debt. I have two questions one can lvnv enforce a judgement that arrow finacial owned and two should i have the settlement offer notorized?? This debt was actually from 04-05 i was a teen and had no idea what i was doing with credit but this is so old i just dont understand how they can keep on trying to collect, however i do understand the judgement thing i just didnt know they could place one after so long. this debt was sold not only for peenies on the dollar but over and over again.
It is not all that uncommon for judgment debts to be sold like other debts. What you are dealing with is something many have worked through in the comments of this piece about Resurgent/LVNV buying up most of that Arroow Financial portfolio.
You do not necessarily need the settlement agreement from LVNV notarized. Was there space provided for a notary in the agreement to settle that they sent you?
hey i am currently 21, when i was 18 i had the dumb idea of opening up a credit card for a jewelry store. long story short i fell behind on payments, lost my job and could no longer afford the ring. i only owed about 100-200 dollars at the time, i attempted several time to contact their customer service to explore my options. i even showed up at the store to see what could be done. at that point i was told i could voluntarily surrender the ring so i attempted to do so with no success since it was “set up” according to the clerk. now 3 years later with no warning a collection agency is contacting me telling me i’m being sued for $1200.
i am a full time student, pay my own school, live at my parents house and work full time to afford my education making minimal money a month (about 13 dollars an hour) is this right? i’m being threatened with not just court but all of their attorney fees and more. i’m not sure of what the best step to take here is.
Debt collectors calling and threatening lawsuits is currently not the reliable signal you are about to be sued it once was.
1. A legitimate debt collector threatening to sue, who then does not sue, could be violating federal and often state collection laws. So legitimate collectors will reserve that type of intimidation (that is what the threat is after all), and use it only when they are ready to file in court.
2. There is a rash of debt collection scams happening nation wide where a scammer some how has access to information about legitimate unpaid debts, and is acting as a debt collector to get you to pay, but they do not own the debt.
3. There are debt collectors that just push the limits and step over the legal line when trying to get money from folks.
I would talk to a consumer law attorney in your area about your situation. You want to speak with one whose practice regularly deals with debt collection defense AND FDCPA violations (fair debt collection practices act). What is the name of a nearby larger city?