Cavalry Portfolio Services is Preventing Me From Buying a Home
Hello Michael. I am in urgent need of some advice please. I am in the state of Texas. I have a judgment on my credit for $6,400 from December of 2008, and I am trying to buy a house. I was not aware of the judgment until I pulled my credit in August of 2012. I had a Bank of America credit card with a balance of $1800. I lost my job, and rather than set up something with them, I ignored their calls. I now know that this was a dumb thing to do. After I found a job, I called them to set up a payment plan, but they had already sold the debt to a company named HILCO Receivables. I contacted HILCO using the number given to me by Bank of America, and I was told the representative assigned would call me back. I never received a call back. About a year later, I received a call from from a company named Cavalry Portfolio Services saying I owed $5,000 for the same credit card. I explained to them that I was willing to take care of what I owed, but not $5,000, but they would not budge.
That was the last I heard of that, till I pulled my credit this year. I filed a motion with the court to vacate the judgement, but they denied it yesterday based on the fact that It has been almost 4 years. Below is what I submitted to the court.
" Michael J. Scott, P.C. (the Firm) is a debt collection law firm serving the needs of national, state and local financial institutions. Its clients include some of the nation's largest banks and credit grantors, as well as successors-in-interest to these accounts. Michael J. Scott, P.C. is not a debt purchaser and does not collect on its own account. Instead, the Firm acts as the attorney for its many clients"
MOTION AND DECLARATION TO VACATE JUDGMENT
The defendant moves the court for an order vacating the judgment entered in this action and staying enforcement of the writ of restitution until the motion can be heard.
This motion is based on the following grounds:
• I WAS NEVER SERVED WITH THE COMPLAINT, AND I WAS NOT AWARE OF IT TILL I PULLED MY CREDIT REPORT ON 8/30/2012
DECLARATION
I, XXXXXXXXX, declare as follows
That I am the defendant in this unlawful detainer action.
That I request that the judgment entered in this action be vacated for the following reasons:
1. I WAS NEVER SERVED WITH ANY SUMMONS TO APPEAR IN COURT
2. I WAS NOT AWARE OF THE JUDGEMENT, till I pulled my credit report on 8/30/2012. Otherwise I would have challenged it sooner. I immediately contacted the court shown on the credit report, to get more information regarding the judgment, as I did not recognize the Plaintiff’s name. I mailed a letter asking for copies of the file, and was told to send in a check or money order. I sent in a money order, and picked up the copies of the file on 11/13/2012.
3. ACCORNING TO COURT RECORDS- SUMMONS CONTAINING PERSONAL INFORMATION WERE LEFT ON THE DOOR OF A FORECLOSED/VACANT HOUSE. My house was foreclosed September, 2008. I signed a lease on a rental house beginning 10/4/2008, The house was vacant October 3, 2008 till March of 2013 when it was purchased. The foreclosure and the new lease which is still in my possession, prove that I was no longer at that residence. Court documents show that the Summons was left on the door of the vacant house on October 31, 2008. Almost a month after the house was vacated. .
4. THE JUDGEMENT SEEMS TO HAVE BEEN ROBO SIGNED – WITHOUT ALL FACTS BEING TAKEN INTO CONSIDERATION. I contacted Bank of America- with whom I had a credit card with a balance of just under $2,000 to try to take care of the balance in installments. They told me the debt had been sold, to a company named HILCO RECEIVABLES, (Not CAVALRY PORTFOLIO SERVICES – Plaintiff). I called the corporate offices for this company in Illinois several times, and was told the person handling my account would call me back, but no one ever did.
5. UP TO THIS DAY I HAVE NOT RECEIVED ANY CORRESPONDENCE FROM THE PLAINTIFF LETTING ME KNOW THAT THEY WON A JUDGEMENT AGAINST ME. MY CURRENT ADDRESS IS AVAILABLE WITH THE DMV AND PUBLIC RECORDS. The judgment papers show that the judgment amount has been incurring annual interest since 2008. I do not think it is right that I am expected to pay interest on judgment that was never made known to me.
HELP PLEASE!!! Is there anything else I can do besides paying the judgement amount (which I don’t have)? The court clerk said she was not allowed to tell me what next steps were open for me to take, and I would need to investigate on my own.
—Chimarrah
Hilco Receivables (now Equable Ascent Financial – EAF) and Cavalry Portfolio Services are debt buyers.
Hilco buys up debt for far less than the face value of what was originally owed to Bank of America. It is hard to know exactly what Hilco paid Bank of America for your old debt, but I can assume it was no more than 15 cents on the dollar, as that was the top end price paid by debt buyers for fresh charge off debt (around 2005). The amount paid to BOA for your bad credit card debt could have been half that.
Hilco buys up debt with the goal of collecting, or even repackaging and reselling to another debt buyer.
Hilco then sold it to Cavalry Portfolio Services. What Cavalry paid Hilco for your Bank of America debt could have been a great deal less than what Hilco paid to BofA if they bought it a year after Hilco picked it up. Let’s assume Cavalry paid 7 cents on the dollar.
Cavalry Portfolio Services Files a Collection Lawsuit
Michael J Scott law firm would have hired a process server to serve you the lawsuit. The process server they hired probably used the only address they knew of at the time, went to the address, and left the summons on the door step.
Because you were not at that address they attempted to serve you using their “wipe your feet here” delivery tactic, you were not aware of the lawsuit and were never given an opportunity to resolve this prior to it reaching judgment. You were essentially denied due process.
You have bounced back financially. After losing your job, like so many people in the recession, you found your home in foreclosure and no ability to pay your credit card bills. You are in a better place now and are ready to buy a home and contribute to your local economy.
You pull your credit report and find that there is a judgment in the public records section from Calvary Portfolio Services. Your thinking – “This can’t be right. I did not even know about this.” You research your options and learn that a judgment can be vacated for improper service. You go about filing the necessary paperwork with the court. I am sure you did that with a realistic belief that justice would prove out. That the process server leaving the summons at the door of a vacant home, where you can prove no one lived there, would win the day.
You are shocked to learn that there is some limitation on the Texas court to do the right thing.
Laying out the facts as you did in the background you provided above, and for which I added some additional color, suggests that common sense would prevail. It did not.
I do know there is some form of a rule about vacating a judgment in Texas after 4 years. I do not know the ins and outs of it. If you were approaching the 4 years, but not over that line, you could possibly appeal this. That would cost money to hire an attorney unless you could get a public interest attorney to pick this up.
If you were not over the four year line, why would a court allow the Calvary Portfolio judgment to stand?
You as much as admitted the debt in what you filed with the court. Perhaps the judge saw the rest of the chronology as semantics.
With the only controversy being that of proper service I can see where a court would reach the decision it did. I am not saying I agree with it, because I don’t. But I can see a court dealing with collection lawsuits day after day, and perhaps seeing representatives from the Michael J Scott law firm week after week, coming to the decision.
Creating additional controversy about the debt is something I often see in debt collection cases. One controversy is denying the debt, or the debt amount. This would be easy to do when, in a case like yours, you started with an 1800.00 balance and it ballooned to 5000.00 in a short period of time. I am not pointing this out to you to suggest any error. You did what you knew to be right, and then did not get the right outcome – a vacated judgment. I am pointing the additional controversy out for anyone who may read this later.
Calvary Portfolio Services Impairs the Texas and National Economy
There are many implications with what has transpired in your situation. Perhaps due to the recession and the fact that what has happened to you will continue to happen across the country, some needed awareness and discussion can take place.
Here are some of the reasons it sucks to be you, sucks to be Texas, and it sucks for the economy.
- A debt buyer like Cavalry Portfolio Services can buy a debt for a few cents on the dollar and inflate that debt beyond anything reasonable.
- Cavalry can use a network of debt collection attorneys across the US to file lawsuits to collect on these inflated balances that were owed by people who lost their jobs, are still unemployed, or under employed.
- Judgments and court enforced collection on these massively inflated balances leave those who are bouncing back from a recession (we may still be in one), from spending on goods and services that create or keep jobs.
- A housing market barely in recovery in some areas of the nation, and not yet at a bottom in others, will not recover until there are buyers. There will be a smaller number of home buyers for some time as a result of the housing implosion. That is to be expected. But that number will remain smaller for longer still, due to the many billions of outstanding collection debts resulting from record high credit card defaults whose balances have been inflated.
Your finances are on the mend. You are ready to become a homeowner again. You are held back by what has been recognized and publicized as a huge problem with debt collection lawsuits nationwide – “sewer service”.
Were you (and others in similar circumstance) to buy a home, it is highly likely that you would add to the local and national economy by buying items over a period of time to make your home comfortable. You would pay local businesses for upkeep and repairs. Perhaps buy furniture and other items. All of this activity would create jobs, and help people to keep jobs.
Were you taken out of the home buyer market for whatever period of time in order to pay a hugely inflated 6400.00 debt that Cavalry Portfolio Services may have only paid 90.00 for… that sucks. It doesn’t just suck for you, it sucks for jobs and economic activity the nation needs.
Does Texas need Cavalry Portfolio Services to get a 7000% return on its investment after sewer service on a lawsuit, or does Texas need jobs and more robust economic activity?
Rant off and Unfortunate Reality
I encourage you to speak with a Texas consumer advocate attorney and learn what, if any, affordable and reasonable options remain for you. If you determine you are not going to fight this any further, here are some realistic options:
- Negotiate an agreement to pay the judgment for less than what is owed. Any agreement should include their filing a satisfaction of the judgment with the court.
- If you are unable to resolve the judgment with a settlement, you may need to consider putting off the home purchase until the 7 year time frame for it to fall off your credit report expires. Be aware that the judgment may be off your credit report, but it is still out there. You could still have your bank account levied.
Post any questions or comments you have below. I encourage all readers to participate in the conversation.
Update – after exchanging emails with the person who started this post, I thought to add some some suggestions for anyone who is concerned about compounding setbacks from debt collection accounts:
Monitor Your Credit Report for New Inquiries and Entries by Debt Collectors
You can often see what is going on with older debts by what pops up on your credit report. Collection companies make credit report inquiries. You can use your credit report to see who most likely has an old credit card debt you now may want to resolve in order to achieve current or future financial goals. You will also be able to see if a debt collection company or debt buyer like Hilco, Equable Ascent or Cavalry Portfolio is misreporting something (happens far too often).
You may not be all that motivated to see what is going on with your credit report when you know it is going to look like crap due to late pays, charge offs and collection entries. Do not be deterred by this. Credit damage from accounts that go into collection is temporary. The damage begins to take on a staleness over time, so your credit may not be as bad as you think. You can actually take proactive steps to help your credit even when there are negative items still reporting. You can also be certain that you have the opportunity to respond quickly to something like what happened to the above reader.
You can monitor your credit report for free with Experian, TransUnion and Equifax. At a minimum I suggest accessing one credit report every 4 months using the free web site annualcreditreport.com. You are entitled to a free report once every 12 months from the 3 major credit reporting agencies. Pulling just one every four months allows you to monitor your credit periodically.
When you are in a position to tackle old debt problems and have some financial goals you are aiming for, like buying a home, use some of the free credit scoring tools available on line. I like the credit report card tool credit.com offers. It allows you to check your score once a month. The tool makes suggestions to improve your credit profile based on what it finds in your credit report and score. If you need to add credit products to your credit profile in order to improve your credit score, the site can make matching product suggestions that you are most likely to be approved for based on the data it sees. This takes some of the guess work out of what you would be approved for when your credit is already damaged. Check out the free credit report card.
Tackle Old Bills with Debt Collectors and Debt Buyers Like Cavalry
When you are in a position to repair and recover from your debts of the past, and want to start planning for your financial future – you need a plan. Your debts may have grown older, but they are still out there and growing in size.
Depending on your financial goals and how far out in the future they are, tackling old debt collection accounts may be necessary.
When you qualify for Chapter 7 bankruptcy, you can shed unsecured credit card debts with banks, debt collectors and debt buyers like Hilco, EAF and Cavalry Portfolio Services. Yes, the fact that you filed for bankruptcy does appear on your credit report, but it is not going to limit your ability to accomplish financial goals like owning a home for as long as many believe. In fact, given the example in this post, the reader may have been able to file for chapter 7 bankruptcy in 2008 and been able to access the home loan market with little problem as early as 2010, and with no debt monkey to contend with.
If you cannot, or will not, discharge your debts through bankruptcy, consider negotiating debts with the collection agencies and debt buyers for less than the inflated balances now owed. Settling a debt with Cavalry Portfolio and other debt buyers is not a complicated process. There are some tips and suggestions available to settle credit card debts you will find throughout this site. Use the search box at the top right of this page to find where I have already covered dealing with a specific debt collector, collection attorney, or debt buyer. If you do not find anything specific to your situation, or the company you are dealing with, start a new post like Chimarrah did above by clicking Ask Michael. I will give you my feedback and provide helpful resources wherever possible.
If you are dealing with Cavalry Portfolio Services, Equable Ascent Financial (Hilco Receivables). or the Michael J Scott collection law firm, you are welcome to post comments and questions below for feedback.
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.
Michael,
I currently live in Florida, and am also involved with calvary for a charged off credit card from bank of america.
It has been several years now. I have not been served any papers. Do they always sue, or just leave it on your credit report?.
What are the SOL for florida when they can no longer take action.
Could you also provide me with a attorney in florida to handle tgis, and shoyld i contact them now or only if i get served.
All they do now is call me which i ignore.
When did you last make a regular payment to BofA?
The SOL for Cavalry to sue in Florida is 4 years on revolving debts like a credit card, and 5 when the debt is based on a written contract.
You do not generally need an attorney if you are not being sued. What is your goal to deal with the account? Are you just looking to wait this all out?
Thank you for all of your assistance! I’ve learned a lot through reading the posts. I am finally in a position to take care of some old debt. I live in Denver Colorado. I have two accounts with Calvary. The account in question was last paid in 2011. Calvary has verified that the SOL to sue has expired. Today, I have requested validation of the debt. The balance Calvary is attempting to collect is right at $2200. They have offered a settlement of $1100. Pending receipt of the validation, and assuming the original amount is correct, is this a fair amount to settle? If I understand you correctly, Calvary likely only paid $154 for my account? Also, do paid collections report to the credit bureaus differently than unpaid? I am trying to weigh my options to determine if it makes sense to settle, and if so at what amount, or to wait two more years for the debt to fall off at the 7 year mark. Thank you!
I would not waste any time thinking about what Cavalry Portfolio paid to buy the legal rights to your debt. The price will vary from one bundle of debt they buy to the next, but doesn’t really matter all that much when you are haggling the price that you will pay to settle it.
What constitutes a fair amount to settle will vary too. Settling with Cavalry for 50% or less is realistic.
Paid collections absolutely show differently on your credit reports than unpaid ones.
Why are you requesting validation of the debt?
What financial goals do you have in the next 2 years?
My car will be paid off in 4 months. I want a better interest rate on my next car loan, and I want to buy a house in two years. I am requesting validation so that I know what number I am looking to settle 50%+ from.
With a last paid date of 2011 it sounds like the negative credit reporting will remain until 2018 or possibly into 2019. You will want to have any collection accounts reporting as resolved before you apply for a mortgage.
I would counter offer Cavalry for a good bit lower than what they sent you. Getting caught up in debt validation at this point does not serve much of a purpose (when negotiating a steep discount), unless of course you suspect the debt has been inflated beyond recognition.
Thank you for you advice. Is it possible to have them remove the collection account, possibly by settling for a larger amount?
Probably not. But Cavalry is good about updating your credit report as a resolved collection account, and once that is done, you are in position to get a home loan approved.
It is not necessary to have zero collections on your credit reports in order to get a home loan, just no unresolved collections.
Great, thank you so much!
Good Morning,
I was served by Apothaker Scian, P.C. for a 15 year old debt with Citibank. The amount of the debt when I parted with Citibank was around $18,000.00. It was originally $25,000.00 including interest and fees. I lost my job and Citibank agreed to reduce the amount owed by taking off the interest and fees. I was paying in good faith until I lost my job. My last payment to them according to Apothaker was around 2012. I was afraid they would attach my wages (I am currently working) so I sent them an agreement to pay. I also requested the information that showed the credit agency they represented Calvary SPV, LLC tried to contact me regarding the debt. I was sent two form letters (that I don’t remember receiving). I spoke with a gentleman who said he was a debt collector who worked for the firm and it was indeed a law firm. Knowing that Calvary did not buy the debt for the amount of $24, 682.35, I requested all documents regarding this debt provided to Calvary be sent to me. I did also agree to make payment of $100.00 bi- weekly and sent the first payment in good faith. When they sent the contract to be signed, that is when I requested the additional documentation and informed them, I am not paying for the rest of my life for a debt that should have expired by now. I am not sure if I am correct in any of this, other than I do owe a debt, but seriously at this time to pay the debt and the court cost, which mind you we have not been to court should not be correct.
The SOL is often reset when you make payments. You should check with an attorney of your own, but it appears you have reset the SOL repeatedly.
If I were accepting a payment arrangement I too would want to be certain of the amount owed. You have a right to that information, but now that you are being sued, there is a more formal process to go about getting it. If you do not follow the court process when making your requests for information you may not get what you are asking for.
Okay, thank you for your advice. I think it’s probably best that I try to work out something with the attorney. I would like to ask though, do you think it would be better if I called them and explained my story and reason for it getting this far and then offer them a settlement OR should I just send them a letter offering the settlement. I know it’s late but the last settlement I was offered was for $923, I’m wondering if I should start there and see what they say.
If it were me I would send the account dispute letter with a detailed chronology of all that you did to dispute the charged made by Citibank. I would be through with dates, names, and a brief outline of anything that you found disagreeable, and that those disputes were never resolved, and that Citibank sold a disputed account to Cavalry, and now Cavalry is trying to collect on a disputed balance.
I would sent that certified return receipt. I would wait for their reply and, depending on what the reply consists of, look at negotiating a lower lump sum payoff.
In January 2009 I signed up for a Citi Diamond Preferred card. This was my 1st credit card. They started me off with a $3,000 credit line at 8.24%. At the time, I was also employed by Citi and I believe this was the employee interest rate. Later in 2009 I started having financial difficulties. My roommate at the time moved out and left me with all the bills which I could not afford on my own so a lot of utilities were charged on my credit card. I reached my credit limit and fell behind on payments. At that point I was fired from Citi and my interest rate went up to 29.9% so I was being billed for high interest, late fees, return check fees on occasion, and over limit fees. I continued to try making payments when I could but my balance spiraled out of control and I couldn’t keep up. I reached out to Citi because I knew the UDAP laws were changing regarding fees they were allowed to charge and I continued being charged numerous fees per month. I was put on a hardship plan where they were to stop interest and fees for 1 year and allow me to make minimum payments to catch up. During that time I was still being charged interest and fees. I tried to reach put to them to find out what the problem was and they couldn’t give me any answers. I eventually stopped making payments because it was not helping my balance at all. They sent my account to a collection agency with a balance of $3,767.44. I explained to the collection company the reason why I quit making payments and set up payments with them starting in June 2011. I made 3 payments of $25 which brought balance down to $3,692.44. After that, they stopped taking payments from me and transferred my account to another collection agency. I kept trying to dispute the account on my credit report but they refused to validate the account and would just send it to another collection agency. Well now the account has been placed with Cavalry SPV with a balance of $3,591.71 and they have forwarded it to an attorney’s office for collection.The attorney’s office sent me a demand letter dated Oct 27th which I recieved on Oct 31st. My question is, do I send them a letter of dispute and try to get them to validate and provide documentation on how they came up with this balance, or call them to see if they will settle for much much less to avoid possible legal problems. The problem with settling right now is that I do not have the money to do it and will need a few months to come up with it.
It is typically better to negotiate a settlement prior to reaching the point you are at now. That said, negotiating a settlement with the attorney for Cavalry is possible now too, but the savings amount you can realistically target may not be as good.
The biggest issue is the fact you need time to come up with the money to settle with Cavalry. Sending off a validation request where you raise concerns about the legitimacy of the balance, and outline the programs Citi enrolled you in, may help you with that. But they may just get all the documentation they need to further collection through the courts too.
If settling is the goal, I would try to come up with what you need to fund the deal you negotiate in the quickest time possible.
If Cavalry sues you can often defend the case effectively for a few months in order to reach the same settlement you might have now, so keep that in mind.
I had two vehicle repossessions in 2002. I lost my job and lost both my wife’s and my vehicles. Due to my ignorance I thought that when a car was repossessed that was the end of it. Well, here it is 2015 and I’ve received a call from Cavalry Portfolio Services saying they would like to help me settle the debt. The original amount of $12,000.00 is now $25,000.00 due to accrued interest for a decade. They said I could make monthly payment of $420.00 a month for 60 months or pay it all in full right now for $7,000.00. While this is a great discount, I don’t have the ability to pay that amount today. I told them I could afford to pay the $7k over 60 months but they just laughed and said that was not possible. The did say due to the age of the debt I cannot be sued for it, but I still owe the money.
Now this debt is not on my credit report, nor was there a judgement filed. However, they are saying that if I don’t pay the debt right now, they are going report it to the credit companies as failure/refusal to pay and they will pull my credit every month so it shows that a debt collector is making inquiries to resolve a debt and that will prevent me from purchasing a home and/or acquiring other types of loans. This seems very strange to me but they said it is within their legal limits.
I don’t know the legal limits but this whole thing is rubbing me the wrong way. I am in Kansas City Missouri and the loans were generated here as well.
Legitimate debt collectors will typically refrain from making statements like what was told to you.
Cavalry Portfolio is a debt buyer and may not directly employ the debt collector you spoke to. Were you given the name of a different debt collection agency? Do you have the phone number that you were called from on caller ID, or a return number that was provided for you to call back?
Cavalry was who she works with. She gives her business name and address every time she calls me.They called me from 877-566-0014. and the call back number she gave me is 888-229-6009.
I’m trying to scrub my credit so I can buy a house so I’m trying to be a preventative as possible as I know that once something is on your credit report it can take years for it to go away whether it is disputed or not.
Debt collectors are prohibited from telling you they are going to do something that they cannot. Placing an aged off item on your credit reports is not a threat a debt collector with Cavalry can follow up on. Even if you did make a payment toward the debt in 2013, that does not breath any credit reporting life into the debt.
I would not worry about the credit reporting. If something like that does occur post an update and I can help you from there.
You may want to consider sending Cavalry a cease communication letter so you do not have to deal with this again. If that collector got your gumption up you may want to file a debt collector complaint with the CFPB.
I appreciate the advice. Thank you.
Dear Michael,
A few days ago I have received a letter from the WINN LAW GROUP, Fullerton CA. It stated that this Law Firm is a debt collector, as defined by 15 U.S.C. 1692 (a) (6), and this is an attempt to collect a debt. Any Information obtained by us will be used for that purpose. Current Creditor: CALVALRY SPV I, LLC. Charge-off Creditor: Citibank. Charge-off creditor Account#: XXXX9368. Total Due: $5,648.81. We represent the above named current creditor, who referred the debt to us for collection. The amount of the debt is $5,648.81. The amount of the debt that we are attempting to collect (“the debt”) is reflected above. Unless you, within 30 days after receipt of this notice ( “the 30-day period”), dispute the validity of the debt, or any portion thereof, we will assume the debt to be valid.
After fell on hard times in 2011 I was unable to make any payments to Citibank. Base on my credit report I believed that this credit card account is over 3 plus years old (last payment made) and I’m not sure if it passes the SOL period of 4 years. I will send a debt validation request to Cavalry SPV I, LLC with a certified return receipt because I do think that Cavalry/WINN LAW GROUP will Sue me. Could you please refer some debt defense attorney that specializes in Cavalry Portfolio Services/Winn Law Group cases? I live in the San Francisco Bay area near Pleasanton, California.
Thank you so much!
Jimmy
Sending the validation request will likely not prevent the lawsuit. What is your goal for this account?
Thank you so much for your recommendation to a debt defense attorney. I will contact them immediately. I have about 40% to settle for a lump sum.
I have been fighting calvary and winn law on my own in el dorado county. They even no shower twice have never sent any documents requested however court just reschedules for them. If I had not shown up I would automatically lose and receive judgement against my home. I am trying to refinance to a fixed rate. I am in California age 68 on fixed income. I own two homes both upside down. The most recent event I appeared at court a person representing winn law preceded to work with judge in dates for pretrial? I felt invisible. Citi bank did not honor credit protection/refused rewards earned to adjust balance due/refused to adjust rate suppose to be zero was 19.99 instead of 29.99 was suppose to be zero had account down to 6300 another surgery another discussion with them to adjust? Zero interest however no funds due to accident/surgery they raised it to 10000 then sold to calvary. Numerous robo calls told them I was disabled asked for balance in writing then nothing then person at door with summons. I have been dealing with this going on two years. When I go to court huge disadvantage being alone. Now I will be forced to hire an attorney. At age 68, filing bankruptcy I refuse to do. Please help. Do not want to play let’s make a deal want to counter sue incredibly stressful and citi bank has been sued by kamala Harris I do not understand any of this.
I can email info to an experienced debt collection attorney that covers California if you like? He can help you defend and file an action if it makes sense.
Dear Michael: Thank you so very much for your time, compassion, wisdom and willingness to help!! It is greatly appreciated!! I live in Aurora, Colorado, I am fighting Calvary Portfolio for a CITI Bankcard debt that has been sold three previous times..Each debt collector could not show validation of the debt and dropped their collection efforts. Early on I tried to make payment arrangements as I fell and was unable to work for almost a year. I have not made the same amount of money that I am accustomed to for almost four years now. I work two jobs to stay afloat. I was late filing an answer to the summons. I was receiving consultations from a company that was actually taking advantage of a senior citizen with false promises. I am thinking that I should file a motion to vacate as CPS has asked for a default judgement, this week. From what I have read, I have to file a response prior to the issue of the judgement otherwise I have no other recourse. I would very much like to receive a name of an law firm in Colorado who may be able to assist me. The amount is $17K+, the attorney office is Machol & Johannas in Denver, CO. I am also going to start negotiations with my second mortgage company. They have put their account in the hands of a collector. Which is much better than foreclosing. I am considering bankruptcy. The consultant told me to try to negotiate with my second mortgage and CITI but this was prior to the summons. My biggest concern is to stop the judgement but appreciate any ideas you may have. Again, thank you for your time and assistance. It is greatly appreciated.
Call me to go over the details about your issues. I can be reached at 800-939-8357, choose option 2. If you get my voice mail be sure to leave a message so I know to return the call.
I filed bankruptcy 3 years ago and now this is showing up on my husbands title loan on our home (he was not involved in my bankruptcy). Why if I already filed chapter 11, would it be showing up at all, especially on our title loan as a judgment when my name is not even on our home loan?
What state do you live in? Who is it that has the lien on the home? Did they sue before your bankruptcy?
I have just received a strange piece of paper sent to my house from calvery portfolio stating i need to check with our local supreme court for paperwork on a judgement. I never received a court date or anything some random person did drop paperwork off to my house a couple months ago but i did not respond to it, im not sure if I should call and try to make payments to them I am currently un able to come up with a lump sum as my fiance just lost his job. I orginally owned best buy 4100.00 and it is now up over 6,000. I’m in new york. What is the best plan of action at this point. I did look up my credit score and it is not a judgement on there as of yet but as coming up as a collection.
Thank you
It sounds like you were served and did not respond a couple months back. Now you are receiving notice of a default judgment. If that is the case, it can take a month or three to show on your credit reports.
If you cannot afford to settle for a lump sum, or are unable to set up agreed upon payments with Cavalry Portfolio Services, you will remain exposed to extra ordinary collection efforts due to the judgment. That can mean wage garnishment, bank account levy, and property lien.
The best plan of action is to only do what you can afford. Sometimes that can mean doing nothing, and saving up to settle with Cavalry.
Are there other debts out there unpaid, and if so, how much total?
Yes I stopped paying on different cards to try and claim bankruptcy because my student loan payments are so high that I couldn’t afford it all but was unable to complete the filing by that time I was so far behind on them I let them go I have 3 total with a total debt of about 10,000 they are the only company I am hearing from at this time and the debt was from 2011.
Hi Michael,
I live in CO and have contacted Calvary to dispute a BofA account on my credit report. The account was settled w/BofA in 2009 but the copy of the settlement letter I had was lost due to flooding. Calvary took my calls until I formally requested the account disputed by phone on 2/26/14. They knew exactly who was calling when I did call previously as they immediately confirmed who was calling and verified my current address before I even introduced myself. Now when I call any number for Calvary my call won’t go through–it immediately hangs up, no ring-nothing. I have been calling the phone numbers of 800-501-0909 and 602-667-0128 and 866-483-5139. Do you have any other suggestions for quick resolution?
Thanks
Send your dispute communications to Calvary in writing using certified mail return receipt requested, keeping a copy of all for your records.
You could also file a debt collection complaint with the CFPB and realistically expect a few weeks before you hear anything back (which is a good time frame for such efforts).
Michael,
I am hoping you might be able to assist. Cavalry is alleging that I owe them almost $4300 through Best Buy Credit Card. They have served me and I have filed an answer. I did the best that I could, and I am not sure if I did it right. So my question is, should I try and negotiate lump payment so they can drop the case, and if so how much could I expect to pay? Or should I let them have to provide proof the account is mine in court?
As many others mentioned they are stating that I owed this amount from Best Buy (original debtor). I can probably get access to anywhere between $1500 – $2000 and pay it off. Would you suggest I contact Cavalry to negotiate even though I have denied the charges? Or should I contact the attorney (Winn Law Group in Fullerton, CA?
I work full-time and go to school full time so I don’t have a lot of time to be going to court. What are your thoughts on this?
I would weigh the cost of settling with the cost of working with an experienced debt defense attorney. An attorney that has fought off Cavalry and the Winn Law Group in the past could cost less.
If you like, I can refer you to a law office in California with the experience you need. They offer a no cost initial consult, so the price is right to get the details you need to weigh your decision. Let me know and I will email that to you.
Otherwise, I think you are realistically looking at a settlement higher than 2k now that collections have reached the courts.
Michael, I was thinking that would be a reasonable course of action. Would you mind sending me the information for Sacramento, CA? I saw a BK attorney and he was advising me to go that route, but I want to see if there is anything I can do to avoid having to go this route.
Thanks for all your help.
Hi Michael. Can you also send me a referral to a law office in the Los Angeles area with experience in fighting off Cavalry and the Winn Law Group? Would greatly appreciate it! Thanks.
Current situation: I had a debt from GE Money Bank/Furniture Factory Outlet back in 2009. I filed chapter 13 bankruptcy on this debt in 2009. Two years later, I started to see a collection on my report for this same debt. It appears as though they sold my debt to Calvary Portfolio Services and I have been fighting with them and the credit agencies for three years now to get it off. They will take it off when I dispute, but then is mysteriously reappears. This time I have filed complaints with the Consumer Financial Protection Bureau. It is just so frustrating that they did this. My bankruptcy discharge date is next week, once I get those papers, is there anymore I can do to ensure this stays off of my credit, legally speaking?
What was the result of your CFPB complaint (if you know yet)? It is that result I would likely leverage if Cavalry deleted, only to reappear again afterward.
I finally got a response from my complaint with CFPB, needless to say, the file was removed from my reports. See Calvary’s response below. I have three complaints now with the CFPB, I believe it works.
Company responded
Calvary Portfolio Services said:
Explanation of closure
Dear Sir or Madam:
Thank you for giving Cavalry Portfolio Services, LLC (“Cavalry”) the opportunity to respond to this complaint.
In the complaint, Ms. Phelps alleges that Cavalry reported information to the credit reporting agencies regarding Ms. Phelps’ Cavalry account and that Ms. Phelps filed for Chapter 13 bankruptcy.
Cavalry investigated the allegations and responds as follows:
By way of background, on or about August 6, 2007, Ms. Phelps opened the underlying account with GE Money Bank. The account was branded as a Furniture Factory consumer credit card account. On or about May 20, 2009, the account was charged-off. Prior to Cavalry’s affiliate’s acquisition of Ms. Phelps’ account, on November 10, 2009 Ms. Phelps filed for Chapter 13 bankruptcy. On or about February 20, 2013, a Cavalry affiliate acquired Ms. Phelps’ account.
As a data furnisher, Cavalry reports information regarding customers’ accounts to the credit reporting agencies. Cavalry reported the account as “petition for Chapter 13 bankruptcy.”
In investigating this complaint, Cavalry reviewed its records associated to Ms. Phelps’ Cavalry account. Based on this review, on or about the same day that Cavalry received this complaint, February 23, 2015, Ms. Phelps’ Chapter 13 bankruptcy case was discharged.
In response, Cavalry notated its system to reflect the discharge. Further, Cavalry requested that the credit reporting agencies delete Cavalry’s tradeline from Ms. Phelps’ credit report. Cavalry expects, but cannot guarantee, that the credit reporting agencies report accurately.
In further response, Cavalry closed Ms. Phelps’ Cavalry account and permanently terminated collections on the account.
If your office has any further questions, please do not hesitate to contact Cavalry.
I
Thanks for posting the update with the Cavalry Portfolio Services response to the CFPB. I know that helps other readers and subscribers to the site!
I actually worked for Cavalry Portfolio Services in Arizona for 9 years. While working there one of my own debts came in the office. It was a B of A credit card. The balance now was 7k originally 3k. I made arrangements with cavalry to settle at 2k and auto deduct 50.00 from paycheck since i worked there. Well they ended up letting me go and i still owed about 1500-1700 on settlement. The sif letter i signed never said anything about if i defaulted on it that would void the sif like regular sif letters have. I had to stop paying since i just lost my job and had to take unemployment for a month.
Well couple months go by and I receive a letter from Gurstel and Chargo that they are now handling this account. I disputed it and sent numerous letters requesting if i can continue to pay the settlement and provided supporting documents. Those letters were unanswered and i even sent an email. Then i was served papers. I started paying 50.00 in December of 2013. I thought this might help. I went to court and i discussed my willingness to continue to pay on the original settlement and at this time i already made a few 50.00 payments anyway even thou they didn’t agree with the settlement. So after they continued to deny the original settlement and me paying $200.00 to them i decided to offer a settlement for original amount of the credit card. I proposed 3k sif with 300 down and 135 a month for 22 months and they can automatically take it out of my checking account. They agreed to the settlement but i had to sign a Stipulated Judgment. Which I wasn’t happy but at least a judgment wont be recorded on my credit unless i default.
I got the SJ letter and i had to get it notarized and i did. I mailed it to them. I received the letter back in the mail outside of the envelope and missing the signature. I thought this was very strange. I called Gurstel and Chargo and left a message with the rep that i had been dealing with and let her know that i received the letter back and missing the signature page and wanted to make sure they received it. I got no call back and they continued to take the money out of my account so i figured they must of received it. Then a couple months later i received a letter from the court that i missed court and a default judgment was entered. I called the court and asked what this was and they said i missed court so a default judgment was entered. I asked why since I signed a SJ. She said the attorneys office never provided that information to the court.
I then sent Certified letters to Cavalry , Gustel , and Court. I immediately called Gustal Chargo and they said they never got the signed SJ back. I explained i called and left message and the mail issue and so i had to get the SJ notarized again and sent it Certified to everybody in July 2014. I then spoke to a manager in August and he confirmed they did receive it and they would fix the judgment. I pulled my credit report and disputed the item. I then just stopped thinking about it for couple months then i tried to get a used vehicle for 4k and was denied and was told that my credit score was 490. Yikes.. It was 580 before the judgment and I cleared some other items so i was shocked. I pulled up my credit bureaus again and saw that there was a judgment on equifax and transunion. So I again disputed it and sent cert letters with the SJ copy . Transunion sent me a letter and said it was “frivolous” since they had already confirmed it. I then called Cavalry and they said it was showing a judgment and i explained it to them. They said they would call Gutel and Chargo. I called Gustel and Chargo the next day and spoke to a manager and she told me that Cavalry never called and they show that they never received the signed agreement letter. Again furious. I have the cert letter green card that i confirmed it was delivered to their office. I’ve been fighting with this since March 2014 when i signed the SJ and they have been taking payments out according to the SJ. This has been very frustrating. Is there anything i can do.
Thanks,
I would file a debt collection complaint with the CFPB against Gurstel and Chargo. Be as detailed as you can be with dates/times, and names of people you spoke to. Post an update with what you hear back.
I would file a complaint with the Sate Bar against the law firm. I had to do that in CA. The firm retracted it’s complaint within days of the Bar agreeing to investigate. Of course have all documentation to prove your complaint.
I have a question, we (my husband) had unsettled debt with Calvary collections; we’ve been trying to refinance our house, and the lender pulled credit, Calvary is showing up on his credit report as ‘disputed’. We have a payment plan worked out with them, a letter stating so, and a letter from the original debt (Chase) saying that it’s not in dispute. I’ve sent it to the credit bureaus two times, and Chase also sent their letter to all 3 of them as well. I’ve had our credit pulled two more times since receiving the letters back from the bureaus stating they were taken care of and Calvary is still showing up as ‘disputed’. This verbiage needs to come off the reports in order for us to get refinanced. I’ve had my husband call Calvary – who’ve said they don’t do any reporting to the bureaus. How do I get this verbiage off the reports so we can get refinanced. HELP!
File a credit reporting complaint with the CFPB. Include all of the details and chronology of who what when where and why to date. You will file the complaint against the credit reporting agencies from what I can tell of your situation, but it would not hurt to include all parties. Here is the beginning of the complaint process with the CFPB: https://www.consumerfinance.gov/complaint/.
Post an update with the progress you make. This is a concern for many, so it would be good for others to know the results, and how long those took to get.
Julie-
I agree with everything you have been advised on so far. The person you need to track down is Dorothy Fletcher. Send her all your info- and she can remove the dispute comment within days. I believe she is an Experian employee, but I’m not sure. I was in (almost) your exact situation. She fixed it immediately, and I was able to proceed with my home purchase. Also, I was able to litigate (after the fact) with the “collections” company very much to my satisfaction. Fix the immediate problem (the dispute comment) first, the facts are a matter of record and if you deserve recompense, the court should decide in your favor. My .02. Furthermore, Cavalry does report to the credit bureaus- that’s just another tool they have at their disposal to abuse the consumer. Dorothy Fletcher can fix your problem, and ‘Shelia’ in the legal department at Cavalry will be able to confirm or deny whether they are showing the account as disputed or not. Take very good notes regarding this conversation, it may help you in the future. GL
I have just been served a summons on an old credit card from BOfA, the summons comes from Ewing & Ewing Attorneys, PC but the plaintiff is named Calvalry SPV I, LLC.
This debt began in 2005 and I have not paid on it since 2006 at latest. although it was removed from my credit in 2009 and shortly thereafter was claimed again at double the original amount. Now $1342. after legal fees. I’m pretty sure that it has reached its sol twice now.
I never recieved any requests for payments or even a notice of lawsuit prior to being served.
I’m not really sure what my options are in dealing with this matter, or the best steps to take.
Thank you.
Christina – What state are you in?
Arizona
Arizona recently raised the SOL for legitimately filing credit card collection lawsuits to 6 years. But the SOL would have expired before 2011, and would be over the 6 year SOL based on what you have shared anyway.
If I were in your shoes, I would file a very basic answer to their complaint claiming the SOL causes this debt to be time barred in the courts. You have to raise these issues with the court following the simple procedures they outline, otherwise the court will have no clue.
Hi, I am in the same situation. I had a BofA credit card that was closed at $750 and now it has turned into a $2,319 amount after all the fees. This card was opened on 07/2007 and I was wondering what type SOL on a judgment can be made from that date. I am also in Arizona. Can I settle out of court with Cavalry? Can I just write to the courts stating that the SOL for an account exceeds the 6 year period. Thank you for any advice in advance.
Is there already a judgment in the court, and if so, what was the date the judgment was entered?
Also, what is the name of the plaintiff suing (BofA sells a lot of debt, and I am looking for the name of any debt buyer if that applies)?
Did I mention they were originally trying to collect over 16k? They came down to $7700 almost immediately to get a settlement. I know settling the way I did, for the amount I did was wrong, and a very bad decision financially, but, they had me held ‘credit hostage’ and it was very time sensitive. I guess overall, I’ve learned not to co-sign, check my credit report more often, and don’t try to buy a house without having all my ducks in a row. I have all the paperwork to back up everything I’ve stated. If anyone wants to take this on and give cavalry & Kramer a black eye- I’m in.
Bryan – You did mention all that. And you did what you did, when you did it, at least as it appears to me, due to your priority goal being the home loan going through. Nothing wrong with that. And nothing wrong with lamenting this a bit after the fact. But what is it you want to use to give to others to give Cavalry a black eye?
I guess I’m wondering if anyone has tried to obtain a favorable decision in court after the fact, or is the point moot? I keep using the term ‘bottom feeders’ because I believe companies like Cavalry take advantage of unfortunate consumers. I don’t see the need for companies like this to extort people. How can legislation be introduced to cap what they can collect?
Bryan – People tend to move on quickly after resolving a debt. I do not see much from folks after that unless it is about improving their credit reports and scores. I do follow the debt relief and collections industries closely. There are indeed times where a state or federal regulator will call out companies like Cavalry SPV and hold them accountable for past business practices, and sometimes older consumer files can get pulled into a class action.
2014 is going to be the most interesting year for debt collection issues since the FDCPA was enacted in 1977. The CFPB will likely publish rules affecting every one in the entire life cycle of a debt this year. Those rules will protect consumers better, and allow for legitimate debt collectors and buyers to collect with a higher level of confidence.
I do not see a cap on what can be collected coming, as much as I see anyone trying to collect MUST be able to substantiate what is owed and how that balance was arrived at. In other words, Cavalry jacking the amount owed by several multiples may need to be accompanied by the creditors governing agreement with you at the time you defaulted. And I am not talking about a court action where this type of thing is needed for best evidence. I am talking about asserting verbally or written, an amount as due and owing, at any time.
A short note on Cavalry- I had a debt from my ex ( I co-signed) go into collections- original amount – $2100.00. Cavalry picked up the debt, jacked it to $16,000 and attempted to serve me. They were unsuccessful in serving me. Flash forward three years- I’m trying to buy a house, and this collection shows up. I haven’t used credit in years, and had never pulled my credit report until applying for a home loan. Long story short, I contacted them, settled for $7700 cash ( highway robbery)- the problem is getting them to show it as settled on my credit. Some legal genius should figure out a way to legislate a cap on what debt collectors can actually collect-and I should learn to monitor my credit more closely.
After re- reading this, I should point out I had no knowledge of them attempting to serve me, I didn’t find out until I investigated the debt about 3 1/2 years after the original account went in to collections. Hopefully that straightens out the timeline. I don’t mind paying the balance- that is the risk you take when you co-sign, another lesson learned- but I don’t like my credit being held hostage by a bottom feeding company like Cavalry. I wonder if I can take legal action after the fact. Any thoughts?
Bryan – I would have approached this very differently, and not have settled if I had any intention of challenging the lack of service or anything else about Cavalry collections. It is realistic at this point to expect them to update the court record with the fact that the judgment is satisfied. That is what your lender is asking for at a minimum in order to get financing approved right?
You mentioned calling and settling. Did you get a written agreement from them before paying? What form of payment did you make? Did you talk with Cavalry SPV directly, or with a third party debt collector/collection attorney office? If third party, who? When did this settlement occur?
Over the phone, Kramer, Linkie & Taylor (the old Mann Bracken bottom feeders) took my wire transfer. Everything was agreed on prior to doing this. I really wish I could’ve done it differently, but time was not on my side. Had I been forewarned, I would’ve taken the steps to satisfy my debt without paying almost 4x what was owed. I did everything via email & fax before agreeing over the phone to send money. As of today, the account is not showing on my credit report anymore as an outstanding debt.
To answer your other question, there never was a judgement against me- just the open account on my credit. Settlement occurred the second week of December, 2013.
Bryan – Okay. Well, it sounds like your goal of getting the Cavalry collection item to show settled on your credit report was exceeded by them no longer reporting it at all, which is great.
All is well that ends well I guess. I’ll never put myself in that situation again though. Good luck to all that have issues like this. It was a very stressful problem to deal with.
Hi Michael–
Please let me know if I should direct this question to another page on this site.
I have a credit card originally held with Bank of America that is now owned by Cavalry Spv I, LLC. The account was charged off in January of 2010, so it’s been awhile.
They have filed suit. I have responded in order to give myself some time. I just received requests for admission and interrogatories in the mail.
Original balance was just over $5,000, but of course with interest it is now at $8,700.
Personal situation: I work part time as an instructor. My husband has health issues that prevent him from holding a normal job, and prevent me from working more than part time. We live frugally with no other credit lines or car loans, and this is our only “bad debt”, which I brought in to our marriage.
I would like to settle. The max I can come up with is $3,500, though of course the less, the better.
My question is, what are your general thoughts about this situation, and second, what do you think they might be willing to accept as far as settlement.
Thank you for your time!
Lacey – Settling debt at this stage, when sued by a debt buyer, is often targeted at 50% of the balance they are suing for at the low end, but more often at 70%. The instances where lower targets for settling can be realistic is when there are fixed income, or more extreme hardship realities at play. Even then, sometimes reasonableness does not prevail.
If it were me in your shoes I would consider consulting with a debt defense attorney (consults are usually free), and find out their experience dealing with the situation you have. They probably have dealt with the attorney debt collector suing you already, and can share that perspective with you. You may find that the attorney offers more affordable assistance to help you defend the Cavalry case, with an eye on getting it dismissed, than what you could settle this for – if the attorney for Cavalry is not open to accepting the 3500.00 offer you are contemplating.
I would want to consult with this type of attorney first, before making an offer to settle. You may also ask if the attorney you consult with has an experience that suggests they can succeed with settling, but where the settlement amount and their fees for assisting with that combined would not exceed the 3500 you have access to.
There are not many attorneys with a practice that focuses on debt defense. If you would like for me to send you contact information for a few you can consult with, send an email with the name of a nearby larger city, to the address you receive these comment notifications from. I will reply with that information.
Thank you for the response Michael. I feel so gutted. You are right, It did not even cross my mind that my request to vacate would be denied. I have been calling attorneys to no avail. Most of them want at least 2.5 k, and they ofcourse cannot guarantee that they will be able to have it removed. I am not yet at the 4 year mark, but it is approaching really fast. The judjment is from Dec 2008.
Chimarrah – I completely understand the feeling of dismay. This kind of thing with Calvary Portfolio and sewer service on a collection account, only to find out about it later is frustrating to see happen so often. To be right and be stuck with the wrong makes this that much more unfair.
From a pure cost perspective, and given the judge has already ruled, I would only encourage you to keep the fight going if you had a public interest lawyer interested in the issue, fairness and good law. This would likely mean someone capable and willing to take this through an appeal process. This would mean spending more than probably the debt amount, or connecting with someone not concerned about the money.
Given where things stand, from a pure dollars and cents standpoint, it would make sense to work toward saving up and settling the debt with Cavalry for as little as possible and get the satisfaction of judgment recorded.