HSBC Debt with a Pending Lawsuit – Judgement Proof – What Next?
Retired, 65. Lawsuit filed but not yet served by atty. allegedly rep. purchaser of alleged CC debt from HSBC. SSDI sole source of income. 1 car, 1 home (<15K). Am apparently judgment-proof. I think the alleged debt is inflated, but have no money with which to negotiate, anyway. Foresee need for new car w/i 5 yrs. Have impeccable credit w/Capital One which held loan on current vehicle (never missed pmt. in 5 yrs.), so suspect they will car loan again, therefrom. Imminent need for new car is sole concern, not credit rating. Currently hold Capital One CC, also.
Have done legal research. Should I simply let them have judgment; or, should I force them to validate debt ownership, how alleged debt was arrived at and produce copy of original CC appl.?
—Richard
It sounds like HSBC sold your old credit card debt to a debt buyer. The debt buyer sent the debt to an attorney debt collector who filed suit. Some debt relief service provider that scans court records in order to send solicitations for their services sent you something in the mail that tipped you off to a lawsuit being filed. Your now just waiting for service of the lawsuit. Sound about right?
I have more questions than feedback at this point. I will list my questions first, followed by some general feedback.
How long ago was it that you stopped paying on the HSBC credit card?
What was the amount owed to HSBC at that time.
What is the amount being alleged as owed now?
Who is the plaintiff in the lawsuit if not HSBC?
Who is the attorney debt collector that filed the suit?
What is the 15k you mentioned in reference to?
What state do you live in?
Answers to the above questions would give me an opportunity to provide more helpful feedback and make additional suggestions.
Dealing with collection lawsuits from creditors differ from dealing with debt buyers suing on purchased debt.
I answered a somewhat similar question earlier today found here: Apothaker and Assoc collecting for Portfolio Recovery Assoc. Apothaker has not filed suit in that one yet. Sending a debt validation in the instance outlined in that linked answer makes sense. Your sending one with a lawsuit already filed won’t likely stop you from being served and having to respond.
If your sole source of income is SSDI, your bank account would not be levied if a judgment was entered against you. If money other than sourced from SSDI goes into your bank account, if a judgment is obtained and enforced through a bank levy, it could be tough to stop.
If you have assets that are not exempt, like your home, you are not really judgment proof unless your equity in the home is less than your states homestead exemption. If a judgment were entered against you and you could not be garnished as a wage earner, your bank account only has SSDI funds deposited so no bank account levy, a lien may still appear against real property as allowed by your state.
Not too worried about your car if it is older and blue books at a low value.
Next, think about your “stuff”. Do you have any collectibles, or other things of value, that would not be considered exempt? I am not asking to scare you. Judgments are rarely enforced by having a sheriff show up to look around at possessions that may have enough value to satisfy a judgment (that are not exempt), but this kind of thing happens. Even though rare, you should at least pause to consider it.
At this point, you can wait for service and respond to the suit. If it is a junk debt buyer, the defenses available to you are often more numbered than if the debt is still held by HSBC and they are the ones suing.
Some options to consider when you are served the suit:
- Contact your nearest low income legal aid office and see if you qualify for legal assistance. Your limited SSDI income suggest to me that you may qualify.
- Connect with a consumer advocate attorney in your area with experience defending against collection suits. The attorneys charge fees, but there are numerous around the country who have a great record defending debt buyer lawsuits (and creditor lawsuits).
Anyone with questions or concerns about the issues covered above is welcome to post them and get feedback below.
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 had someone call my sister today. They said they were from Proceedings Group. My sister gave me the number to call. â€(877) 826-8684‬. I called them back. They said they had a debt collection for me and they were needing information to serve me a summons. The debt was with HSBC the amount of 2400. But I could pay $500 if I wanted to settle. I asked them to send me information with so I could research it. The letter the emailed me was a contract they wanted me to sign. No address on the letter head. They could not give me an account information for HSBC. But said it might be a Visa card. I called HDBC fraud they said they have no accounts for me but that I might want to call capitol one because some accounts were sold to them. I called them and they only had an account from 2004 that had been completely paid off and closed. Nothing is showing up on my credit report of an open or closed account. I am wondering if I should pay this debt? How do I know if this is real. They said they will take me send me a summons for court if I do not pay.
It sounds like a debt collection scam to me Sarah. More on that here: https://consumerrecoverynetwork.com/question/debt-collection-scams-fakes/
Hi Michael my wife got harassed by a number at work regarding her old account back in 2005 and they said it was a right off but they where going to serve her paper that she needs to call by tomorrow or they will submit the paperwork, she told she never got any paperwork mailed or anything and she asked if they could forward the letter to her, the person said they can only read it to her
Check out this article about debt collection scams. That is likely what is happening here.
I think Capital One sold my information or HSBC illegally obtained my information. I made a call to Capital One regarding a hard inquiry on my credit report thinking possible identity theft. When I called, I got some idiot from India who pulled up an old charged off account from 15 years ago. The next thing I know HSBC calls me about said debt and wants their money!!!!
Other than the inquiry, is there anything else on your credit reports about the account?
A debt this old should not be on your credit, and you likely cannot be sued for it either.
You may want to dispute that credit inquiry off as not valid.
Hsbc had hired an attorney. I’m to be served the papers tomorrow. My only income is child support. The man I spoke to on the phone said they will start ceasing my income 48 hours after the papers are served. It’s been 9 years and I don’t remember even having this card. What do I do?
No one gets to garnish your income within 48 hours of serving you papers. It sounds like a scam. Read through this article and follow the tips I give there: https://consumerrecoverynetwork.com/question/debt-collection-scams-fakes/
Did anyone from all the stories mentioned here was ever taken to court as the collection agencies were indicating?
Hi Michael! My wife and I are in the process of refinancing our home to shorten our mortgage by 4 years and get a better interest rate. We got a call a couple of days ago from the loan manager , saying there was a lien on our property for $6500.00. It was from HSBC from 2006 and the court haering occurred in 2010 at our county courthouse. They gave us the attorney group that represented HSBC. The county says it was coded as a auto loan. I don’t recall having an auto loan from them . I have tried to get ahold of HSBC and have had no luck. It is very hard to get a live person. I called the attorney office the county had on the paperwork. It has now merged with another law firm. They say, they do not have anything on this anymore because in 2013 it turned it back over to HSBC. I want to get this cleared up and taken care of ASAP so our refinance doesn’t get messed up. Do you have any solutions to getting this resolved quickly. This is in the state of California.
Pull a copy of the judgment from the records at the court the judgment is filed in. You can usually access the cases on line through the courts website. Call me at 800-939-8357, choose option 2, when you have access to the court records for your case. I can then have you look for some key information and offer focused feedback at that time.
I have a second mortgage heloc with HSBC. I had no idea this would be an interest only lon. I wondered why it wasn’t going down. I am current on my first, behind on the second. I hadn’t heard from them up until 3 weeks they asking me to pay 128.00 while I am waiting on a loan modification. I need advice on what to do.
Call me this week for a consult Lisa. You can reach me at 800-939-8357, choose option 2. If you get my voicemail be sure to leave message so I know to return the call.
I’ve read up on the comments above and have learned a lot, quickly. Thank you.
On that note, I received a call the third of July, I believe, on behalf of a court summons for my mother. The woman on the other side of the line wouldn’t tell me what the summons regarded, and only stated it was personal business for my mother. I ended up writing down the phone number, and letting her know that she wasn’t expected a court date, that she had heard nothing of it. She seemed obviously surprised. With that, I took this seriously, and told my mother to call as soon as possible.
Here’s that number: 844-445-3138
She did end up calling a few days later on the sixth while I was at work. Now, keep in mind, my mom’s not a courageous person, and is easily intimidated. I suspect that the thought of a surprise court summons caught her off guard, and activated her flight response in dealing with this asap. Here’s where I believe where she’s dug herself a hole. She owes money to Aspire Visa, a company I researched, and they apparently have their own issues with debt collection. Apparently, this debt’s been around since pre-2008, according to my mom. They verified the last four digits of her ss, and started at a high number, around four thousand for her to pay off. They got lower in negotiation, we don’t have much in the form of income, so another debt/bill to pay only adds to the struggle. They took it down to around 1,275, and agreed on bi-weekly payments. She agreed, and gave them her debit card number. I was floored when I found out she did this. They sent her a contract to sign, which she did, and I just found out yesterday, when it arrived.
I learned that making a payment toward a debt past the SOL of four years in California resets the clock to take legal action, but I don’t know how to go about this. Are we stuck? Is this a lesson learned? Can a scammer still insight legal action? Here’s the “attorney’s” name and address, along with the number again.
Michael Wells
844-445-3138
American Financial Solutions 8200 Wilshire Blvd., Suite 400 Beverly Hills, California, 90211
Company Phone Number: 844-547-7515
I’ve done digging and can’t find anything concrete, and I don’t know where to start. Part of me wants to get my mom to cancel her debit card and get a new one. There’s a knot in my stomach because something doesn’t feel right.
I’d really appreciate anything you can give me, at this point.
I am going to send you contact details to an experienced consumer debt collection attorney in California that I want you and your mom to call for a no cost consultation about what happened, and your options to go from here. Post an update with what you learn and lets go from there.
Thank you for the response, Michael. I did as you instructed and contacted the attorney you referred. I spoke to an attorney of the same firm as the one you recommended and not the same one you named, but he was very knowledgeable all the same.
I told him everything that happened to the T, and he came to a similar conclusion I had. The fact that this certain ‘Michael Wells’, his number, and his company, American Financial Solutions, yielded no results on the web nor to the attorney’s own knowledge, he suspected that it was a scam. He also recommended that my mother stop making payments to this company. It’s reassuring to hear that from an attorney, but I still brought up the fact that the SOL would reset after making a payment, and that she had signed the contract he sent. The attorney stated this wouldn’t be relevant, that they had already violated FDCPA by simply saying there was a court date that would be put on ‘courtesy hold’ until my mother contacted the debt collector.
That being said, I learned from my own research that anyone could take legal action, even a scammer, and all it would take for them to attain a ruling in favor would be for my mom not to show up, to show the bare minimum of proof, and they have that signed contract.
With all this, there’s no guarantee that this person is actually a scammer, I also learned that some debt collectors are simply unprofessional, so again, I don’t want to base a decision off a whim, and end up losing a case and having to pay more.
Finally, the attorney recommended I get solid proof of the debt, and there is a line on the first page of the contract that shows the name of the original creditor, along with the original account. The thing is, the company that my mom first had owed this debt to, Aspire Visa, has been gone since around 2009, so there’s no way I know of to call and ask if the debt has indeed been picked up by a collector. My final option is to contact this very collector, Michael Wells, and ask him upfront for proof of the debt itself, is that something you’d recommend? I don’t want to stake anything on the honesty of a potential scam artist.
I’m still in limbo on what to do here, but I definitely have much more ground than I had before thanks to you.
I would follow the advice you received from the attorney. I would probably file a debt collection complaint with the CFPB too, in order to be sure they have this debt collector on their radar.
don’t know if it makes a difference i am from Pennsylvania
Email the same address you get these comment notifications from (those all come to me) so we can connect on the phone for a consult, or fill out the consult request form and submit it.
Having applied for a loan recently often means you have tipped your hand to the debt collector. But depending on your goals, that might not be a big deal. I am pacific time, so available later in the evening for those on the east coast.
i went to apply for a loan and was denied due to a judgement against me from LVNV Funding (Apothaker’s ) when I call the court house to get more info they did not have the full phone number or the original debtor ( I assume it’s a credit card. when I googled what info I had i hit a brick wall, It is from 2009 and they are out of New Jersey. and some of the things i read made them seem a little shady. I am trying to get this taken care of and off my credit report, how can I do this without being scammed?
It was very helpful reading your comments I will defintly be filing a complaint like you suggested. My situation is very similar to all of the people above. My call was to my mother on a TD Bank account from 2009. I live in New York. They are trying to charge me 3000 on a 600 debt. They had old info first said they don’t make calls then said that they must have an old number for me that’s why they called my mom who must have been a reference she was no where in any info with my TDa account. Kept making comments about my mother not being burdened with calls because I couldn’t take care of my financials.
American financial solution
Michael wells (424)253-8440
C3732209 SOUTHERN CALIFORNIA BEVERLY HILLS
When I asked him about a supervisors name because of how rude he was being. He said he was the director and he didn’t have a boss. Then I said so you own the company he said no. His dad did I asked was he a Jr and he said no when I asked for his father’s name. Website company address he said that was irrevelevant and he would only talk about the debt that I created for myself and things that pertain to that matter. I told him it was important because I want to know who I’m doing business with he proceeded to tell me to call TD and see they won’t deal with me and call him back. That I would be served in 48 hrs and they even told my mom they are trying to serve me to take me to court and they want her to get me to call them within an hour before I called.
Wanted to see if you have any contacts for NYC that might take on a case like you stated
I sent you an email with 3 attorneys you can contact. Post an update with how you progress. You may also want to read more about debt collection scams.
I posted a question about having a very similar issue with these guys threatening me with papers to go to court regarding a HSBC credit card I had.
Commerce Recovery & Capital Management, LLC
Phone: 855-817-4835 – Fax: 716-691-3086
Mon-Thu 8:00am – 7:00pm EST
Fri from 8:00 – 4:30pm EST
I was able to talk to a Henry today and pretty much told me I had until today to call him and give them a credit card info to pay a settlement vs the full cost. Please any help to verify if this is legit would be greatly appreciated.
The debt from Best Buy is too old to stay on your credit reports, it is highly likely it is beyond your state SOL to legitimately sue. My impression of things based on what you have shared so far is that you are dealing with a debt collector that is way over the line. You have options like those I posted about in the other comment.
Paying them is not an option if it were me. It would be more about how much you want to help protect others from a scam.
Michael,
I didn’t receive your email. Would you please resend it? I appreciate all your help and have not called him or emailed him back. Called Attorney general and CFPB as well.
I resent the email. Double check it did not get caught in your mail filters.
Hello, My brother got a call from a Jason Santos, phone number 844-712-4101
with a case number saying he was trying to serve me. Mentioned something about state process as far as my brother could understand. Santos said he was putting a 24 hour hold on the action to give me time to respond.
A few years ago I got a very similar call from someone else asking for a settlement amount or I would be sued etc. and when I asked for the proof to be mailed to me they stopped calling. I looked up the above phone number but only saw it related to people claiming similar calls and scams.
Thirteen days later (today) Jason Santos calls my sister in law with the same deal (how they got her number I have no idea), but leaving phone number 844-881-9233 and same case number.
I called the number and got a switchboard operator. I asked for Jason Santos and the operator asked for my name, looked up my state, asked if I am from Texas, then said Arizona, and placed me on hold.
Then I spoke to a “Legal Administrator” who asked my name and put me on hold again.
After a few minutes I spoke with a woman named Maragarity (Mar-Gar-ee-tee) who said she was with Karmen and Michaels. This woman said I was being sued in small claims court for $2,047 plus $2,500 in court costs if I go before a judge. She said I can pay $1,050 to settle right now, do ten monthly payments of $204, or go to court.
She asked why I never replied to the letter they sent. I replied that I no longer lived at that address and that I had lost my job and been homeless during that time.
I said I don’t remember that debt (though it may be legitimate) and asked her to send me information via email about it.
She then said it is on my credit report, quoted my score, said I have a lot of debt, and that once they sue me everybody will start suing me.
Honestly this raised a big red flag that it may be a scam, but I don’t know.
I said I will try to pay this and she replied that there is no trying-I have to decide.
I told her I am going to look at my credit report first to check it out because I can’t remember the debt.
She then became a bit short and said “OK then you can go before the judge and tell him you want to try or whatever you want to say”.
As I began to tell her that I will call her tomorrow once I check this out she hung up on me. She did not ask for a new address, email, phone number, or other information.
I want to fix my credit as it is totally in the dumps. I have had some very rough years, including being homeless and on unemployment etc. I just don’t want to be scammed.
Any advice will be appre3ciated.
Thank you!
Everything you listed has the hallmarks of a scam debt collection set up. Even if this were a legitimate debt collection outfit, the folks they have working for them are crossing too many behavior lines that debt collectors must adhere to, so as to make any legitimate collection effort unrecognizable.
I say scam.
I would encourage you to file a collection complaint with the CFPB. Let them know that you have filed the complaint the next time they call. But that is only if you are willing to take the time to answer the call. I would not spend any time speaking to them if it upsets you in any way.
As far as improving your credit reports, read more about improving your credit, and post your debt details in the comments of that page and we can go from there.
Thank you for the information and the advice! I will file the complaint immediately!
According to that one offer they made me who claimed to be a different business, but I don’t think they really are. American Financial Solutions 8200 Wilshire Blvd., Suite 400 Beverly Hills, CA 90211
P: 844.547.7511 . He also gave me his direct number. He signed the email adr specialist although he claimed to be a litigation specialist not associated with the debt collector. I think that clearly is. I contacted the business with the actual name that shows up when you google it. The real business is a debt recovery business they are very frustrated and pursuing action against the fake business for using their name and reputation. He had told me to search BBB for their business, but only the good business is on there so he wanted me to think it was them. I don’t know if I should contact a lawyer or even call the guy back. Or just ignore it. When I called it was a call agency that takes your number then forwards you to the correct business and office. The card was written off in 2009 according to my credit report and I see no other creditor listed on there with it. Wouldn’t it be on my credit report if it was a real thing? I stopped by paying on it according to my credit report in 2008 so I believe it is time barred. Though the menacing man that called this summer claimed I paid on the card in 2009 I have no memory of that and it would have been sold by then anyway. I just listened to an old voicemail I believe the original person that was harassing me was James Mac from ARS Associated Recovery Systems the number he gave me is 7162561876 ext 124. He was mad in the voicemail claiming they had left many voicemails without my returning their calls. It was the first phone call I had received from them in over 4 months. he’s also the one who called me a liar when I explained that I hadn’t received any mail or emails from him, and demanded immediate payment using my bank account number over the phone. I’m not sure how to deal with this situation.
Yep… AFS is a non profit credit counseling agency in Washington state (though they work with folks nationally).
That number you posted turns up nothing solid for me.
Associated Recovery is an established debt collector. Can you tell me the dates you last interacted with ARS, and the dates of interaction with the most recent collector?
The AFS that is in Washington has been helping me some. They are very interested in the case and are pursuing action against the business using their name now. The AFS that contacted me is not the same business at all. ARS started calling me in July of this past summer. The last call I received from them was Dec 23rd at 11 am when he claimed they had left numerous messages that I’d refused to respond too. I had no messages leading up to that one since early that fall late summer. I said it might be Associated Recovery. They never self identified as such. I was given their initials repeatedly and since I never received any physical paperwork or emails I have nothing to say that it is officially them. I know the guys name James Mac and I even have his extension 124 according to the last voicemail. Last time before that I had talked to him I told him I was still waiting on any documentation from them and he swore they had emailed me and sent me letters on these dates and listed off a bunch. I said I have not received a thing from you and as far as I’m concerned I don’t think you are a real business. He called me a liar and said he’ll email me right now. He said he doesn’t do his own email and that he would have his secretary do it and I would receive it in a minute and he wanted me to call him back to confirm it. I called in late to work and waited. Twenty minutes went by nothing, 1/2 hour nothing so I called him back and he told me I’m lying. I checked every folder verified he had the right email. He said I needed to call the credit company to have them validate they had sold him my account. He didn’t seem to realize that no credit company has my account anymore. I have no one to verify with. According to my credit report hsbc sold it to mainstreet acquisition corp and then the paper trail as far I can see ends. Every phone call with him went the same: he’d be very aggressive and kept demanding I give him my bank account number, make a settlement, or set up a payment agreement immediately or he would send it to litigation and give me an arbitrary time to respond like by tonight. I kept telling him not without physical paperwork in front of me validating what you are saying. He said I left him no choice and it was going to litigation unless he heard from me by the next day. He called that last time in Dec. in which i didn’t speak with him then I started hearing from the lady claiming to be server of paperwork that wouldn’t tell me who she worked for, then the AFS guys called.
If the debt collector is not an out right fake and a scam, you listed enough steps over the line that were made to make little difference.
It is clear that all the legal bluster is just that… hot air. Making threats of legal action when there is no intention to pursue it, is often determined to be a collections violation. If you like, I can refer you to some legal resources you can talk to about all of this. If they think it is worth pursuing Associated Recovery for any violations, attorneys often take this type of case without charging you a retainer.
I’m still nervous about this situation and I feel pretty violated when it comes to this. I would definitely love some help trying to see if something should or could be done. I don’t have a lot of money, but if its a free consultation and they want to pursue. I’d be up for it. I really do not like being put in the position where I’ve spent hours trying to figure this out and never will know for sure if they were even legitimate.
I sent you an email so you can connect with some resources. Using the link to our exchange that I included will save you some typing and explaining.
This same individual (James Mac from ARS) just called me today! Did you find out if this is a scam or not? The caller ID on my phone showed up as a 504 (New Orleans) area code, but the number to call him back is the same 716 number you posted.
Hello,
I started receiving threatening phone calls this past summer. the original message said you are being sued call this number to find out why. They demanded my bank account number to pay a settlement on an old hsbc orchard bank card from 2007 or they were going to sue me. I told them I did not receive anything from them. I asked for all the appropriate information to be sent to me about their business and the debt. I never received a single email or letter. I told them this next time they called. He called me a liar and said they’ve been calling me and I don’t answer and again demanded payment. This happened a few times then i started getting calls from a lady claiming she was trying to serve me papers. She had the wrong address. Now I just got a call last night saying they demand I pay them a large sum and enter a contract with them as a predismissal or they will move forward. He assumed I’d already been served and asked me to look at page three. I explained the situation to him. He says the option is only on the table til monday then they sue for 4,400 plus any lawyer fees they accrue. At most the card had 1200 on it, probably less. I had a credit limit of 1400. Other than the contract, I still have received any mail from them or emails even though I was on the phone with them one day while they were supposedly emailing me it never came. THe local courts say they have nothing filed against me although he claimed it had been filed. The litigation office was American Financial Solutions Beverly Hills and the company that originally had my debt after orchard bank was absorbed was main street acquisition corp. I don’t know what to do.
What you described sounds very similar to how debt collection scams operate. Legitimate debt collectors and collection law firms do not handle collections, especially those that involve the courts, the way you outlined.
I would file collection complaints with the CFPB, and also reach out and talk to a consumer attorney who specializes in protecting people from this type of collection abuse. You can consult at no cost, and get good information about your options. Are you in California?
I live in New York by Queensbury. Unfortunately I don’t know the name of the original collection agency. They would sometimes say initials quickly, but never sent me anything so I have no official name for them. I need help finding someone to talk to. I called the legal aide society and their lawyers are on vacation or occupied til the beginning of march. This guy gave me a deadline of monday til I need to answer him on the options he presented. He genuinely seemed surprise I didn’t have the paperwork they’d sent when he told me to turn to page 3 in my papers and I said I didn’t have anything. Is it all a ploy? Or they just really inefficient? Can I be brought to court unknowingly without ever being served? How can you file a complaint if you don’t have a businesses name?
My money is on this all being a debt collector ploy. Like I said, debt collection in the courts just does not work that way. Debt collectors do not call you and tell you to turn to page three of papers you were supposedly served. I am at this type of work over 20 years, and not one legitimate collector calls to go over legal paperwork like that.
Do what you can to find out the debt collection agency name.
Do you have a phone number they are calling from?
So i got a call from Rick Warren from the same K and MF group 2 days ago. Same threats of getting served papers, law suit and they called my boss at work and told her all this info about me. They are trying to collect a debt from HSBC from 2009. I’m in California and a was wondering if what he is doing is legal and what can I do without an attorney as far as the SOL..? Should I ignore it or pay.. need advice. thanks
I would pay nothing at this point. Calling your work, and disclosing the nature of the call being about the collection of debt you owe, is flat out wrong. It is a violation of your rights.
I sent you an email with contact details to an experienced attorney who regularly takes debt collectors to task for this kind of behavior in California. You can call and consult with Jeremy at no cost. He may even take on your file, and work it from start to finish, for no cost.
I highly recommend the next course of action be getting in touch with Jeremy.
I have been getting these harassing phone calls also from K and M F group in California about an account I had with HSBC last payment was in 2008 and account closed than also. Balance on credit report is $554. They say to settle payment is $1150 if Karen serves me papers it will be $4000. My mom without talking to me first was scared because they called her phone and was leaving and telling her the lawsuit suit, mom was scared and gave her credit card number to them for a half of the first payment to them. I told her I was going I take care of it by talking to an attorney, but she gave them $150. Now and set up payment dates for he rest. Can take his company garnish my check and do am lawsuit against me? Or is it takehiso late and we got scammed for taken?
In California, with a 4 year SOL to legitimately sue, and the calling a family member to discuss debt (generally a violation of federal and CA consumer protection laws, yes, I would say she got scammed.
You can likely undo the charges, and take them to task still.
Call the California attorney I am going to email you contact details for. You can consult with him at no cost. Give him all the details and get his feedback.
I have received a message from my ex sis- n-law and mother( they do not stay with me) who says someone called and left their info about sueing me. When I called back it was an attorney saying I need to make a down payment of $249 dollars and the $100 a month. When I told him I didn’t have the down payment in 12/2014 he threaten to garnish me. The attorney said I owed over a $1,000 but it will be over $3000 with all the court fees. I had a old HSBC credit card in like 2003 (not sure but early 2000). The limit probably wasn’t over $500. The debt is no longer on either of the 3 credit reports so I can’t even pull up anything as far as what is actually owed. When I asked the attorney to stop calling family and call me and send me the info he refused. I was so upset but I feel it could be a scam being that he admited to sending a letter to my old address that was over 8 years old. Seem strange that if someone could hunt down family member home phone numbers why didn’t they have a current or even previous address. How can I bring this to an end on my terms. I don’t have any letters or anyone to settle with.
What is the name of the collection firm the person you spoke with works for?
I suspect you are dealing with a debt collection scammer, or one who is willing to break collection laws in order to get paid. Neither are good, and there are ways to handle each situation a bit differently.
I personally have never received a call from K&MF Group and then last night they left a message on my husband’s number. I returned the call and spoke to a woman who stated they had sent me a letter to which I did not respond. I never got a letter. They are wanting to collect on an old HSBC account opened in 2006 with last payment activity in 2008. At the time I was going through a divorce and thought they account had been paid. It was not. I agree the account needs to be paid but are there some kind of limtations on time with regards to their tactics (threatening suit, etc)? Also, what is the best way to deal with these folks?
There are limits that are set by state law. What state are you in? And does anything related to this HSBC account still appear on your credit reports?
I will have some actionable feedback to offer based on your answers.
The debt is from Texas. I live in Colorado. It does show on my credit report but for substantially less than what they say.
I would encourage you to connect with an experienced consumer law attorney in Colorado. The statute of limitations there is likely passed this year, and threats of litigation, where there is likely to be no follow up action on the threat, are something you should be protected from.
With the dates you provided, the HSBC collections may stay on your reports for another year to year and a half.
If you do want to resolve this debt, talk that over with the attorney you consult with. I can send you an email with contact details for the ones with the experience you want in Colorado if you like?
I had a HSBC credit card (2005) and accepted the Account Protection Plus, that was included into my monthly payment. I received a letter stating that HSBC was getting sued because of falsely representing to customers that they could defer payment if they were involuntarily unemployed. The letter also stated that I was part of the lawsuit and I didn’t need to do anything about it. I received a letter in 2009 from a collection agency saying I owed $12631.56, and I could settle the debt. So I paid what they ask for, and today I received a call from an attorney saying I am being sued for $2200. He stated that I could get my wages garnished and lose my car. He would not tell me what firm he is associated with or any information. I asked him to send me a certified letter with all the information. He wanted my debit card or bank account number. Is this proper procedures for collecting a debt? Do I need to pay this? Should the lawsuit have cancelled any remaining debt? Should I receive something from the lawsuit?
The debt collector may be a scammer. What you described is not normal at all. No real attorney will call you and threaten you with losing your car if you do not pay them right then over the phone.
Gather as much information as you can, even if it is on the next phone call, then file a complaint with names, phone numbers, along with any and all information, with your state AG and the CFPB.
Thank you I will
I have received a call from a person to pay off a Radio Shack credit card which is four years old and the amount is $436.00 from a credit check and they want $1,536.45, I also informed the Debit collector that I was on SSDI. . I just want to make sure that I’m not being scammed because I did pay $75.00 on the account till I started to due some research on this company to see if their legit or not the company is K$MF Group,LLC. I could use any information that could help me out. Thank You Robin
Can verify the company name contains the dollar sign that came through in you post?
The company is Karmen & Michaels Financial. They are located in CA and they do debt collecting for HSBC among other companies. I have yet to find a good contact number for them but I am working on it.
If it were me, I would cease any payments to them until you can verify they are legitimately collecting a debt of yours.
12 years ago, I took a 2nd mortgage loan from HSBC, for $45,000 at 14% interest rate. They denied re-financing so I am in the process of taking out a loan from someone else pay that 30 yr. loan off early, at a 3.4% rate. To my surprise, My pay off is almost $48,000. Just like to know if this is common, or do I have reason to question them? They also put a deferred interest payment of $2500 on the payoff paper, that they said I could only request online, so in other words, I get the feeling they don’t want to talk over the phone. Just like to know your thoughts, or if you can point me in the right direction of who could answer these questions? Thank you
Do you have a copy of the loan agreement? How your payments are applied should be covered there. If there are any discrepancies I would encourage you to talk about your concerns with an experienced consumer law attorney.
Owing more than when you started, and after having paid for 12 years, is not common today.
I received a call today by someone from Midland credit, who said it was a law firm. Someone at work answered this call and left the message for me, when I returned the call (the number was in California, I live in Texas) the woman said that the person who called for me was a processing officer and was there to serve me legal documents regarding a debt. She said he would come to my place of employment tomorrow before noon to serve me. When I asked what this was in regards to, it later came out that it wsa HSBC credit card. I haven’t used that card since 2009, it was written off Aug 2010 and last activity was July 2009 (I pulled up my credit report and found those dates) To top it off, the woman was saying that I needed to pay them $1724 to settle out of court and if I don’t, I would need to pay $5224 which was the balance plus court fees. On my credit report, the original charge off was $385, closed 9/2010. Is this something I may have to go to court over? Should I just pay this company $1724, or should I call HSBC and try and settle on another amount?? Thank you in advanced!!!
It is odd that you are calling a California number while in Texas, and listening to someone tell you there is a process server that will serve you at work tomorrow.
Midland Credit is based in California, but I think they have offices in Texas too. They do sue for debt, and may even own your old HSBC account now. But they do not, in my experience, act the way you describe.
I am concerned that you are being contacted by a scam collection outfit posing as the legitimate collector based on information in your credit reports. I would not pay anything until this shakes out a bit.
Can you post the phone number you called, along with any other identifying information?
This same thing happened to me an old credit card HSBC my Closing balance was 177.00 and this midland Co said I closed out with 881.55 that was what my credit report said. They said I can pay 1867.71 or go to court and end in paying 4367.71 with 33% interest. She said they would be serving me here in texas. I called 18775516926
It is likely a scam Patti. Midland Credit Management and Midland Funding are legitimate companies buying and collecting debts, but they do not go about it with phone calls threatening a tripling of your balance if you go through court.
Do you have a recent copy of your credit reports? What shows on there for collections accounts?
Donna – If this turns out to be a legitimate collection lawsuit, and just an odd way for all of the communications to occur, you have options to settle like they suggest. But first,try to pin down the date you last made a payment to anyone on this account.
You would not be able to call and pay HSBC anything at this point. Midland is a debt buyer, and would have purchased the legal rights to your debt.
Thanks for your reply, the number is 619-289-8493 and the lady’s name was Megan. Mr. King was the processing officer that originally called and spoke to my coworker to give me the info that he was coming by from 8am-12 today and serve me papers at work. It is 12:04pm and no one has come by. However, Megan did call again from an unkown number and I spoke with her about what the balance was coming from. She said she would fax me papers that they supposedly sent to my residence, but I never responded to. That was about 10 minutes ago, I am still waiting on the fax.
I cannot tie that phone number to Midland Credit.
If nothing develops, and no follow through on the lawsuit or fax, I think we can call this one “Busted”.
Post about any new developments and I may suggest some additional measures.
Michael, I received the fax finally, with another phone number for them 949-900-1701. The letterhead says K&MF group LLC in newport beach, CA. I am thinking maybe I misheard the name on the other line and wrote Midland down as I was jotting notes during the conversation… I am wondering if I should call them and ask if this is “time barred”? (not sure if I’m using that term correctly?) Last payment activity according to my credit report I pulled yesterday says July 2014. Thanks for all your advice!
That could clear this up a bit.
I would call your local court clerk, or access the court records on line if they are available, and ask/search for a lawsuit filed against your name. If there is one, I would encourage you to talk about your options with an experienced collection defense attorney. Most this type of attorney will offer an initial consult free. Post the name of a larger city near you and I can email you contact details for any I know in the area.
Donna – I received your email and replied back with contact details to 4 different attorneys with the experience you need in your area of Texas.
Thank you! I received the email. I truly appreciate your help. I did check with my local clerk’s office and nothing has been filed under my name. Also, I have not received any calls today regarding the fax that was sent to me or the fact that someone was supposed to be serving me papers.
Did KM&F ever file on you. I’m getting the same calls. Don’t know if it is a scam or not.
Read more about fake debt collection scams.
I just got a phone call yesterday from K&MF Group LLC stating I was being sued for breach of contract on a home alarm system from APX alarms. they said that I owe 1809.62 and if I dont pay it they will be at my job serving me papers and I will end up paying 5034.00 because of court cost if they sue me. I called APX and they dont have my account on file anymore. HOw do I find out if this is legit?
Read this post about fake debt collectors and then post in the comments at the bottom of that article with any remaining concerns you have: https://consumerrecoverynetwork.com/question/debt-collection-scams-fakes/
How long ago was it that you stopped paying on the HSBC credit card? In 2009
What was the amount owed to HSBC at that time. Approximately $5000
What is the amount being alleged as owed now? $6719.60
Who is the plaintiff in the lawsuit if not HSBC? Nationwide Debt Management Solutions, LLC
Who is the attorney debt collector that filed the suit? Scott Topolski, Esq 2255 Glades Rd, Boca Raton, Fl 33431
What is the 15k you mentioned in reference to? It says This is an action for damages not exceeding the sum of $15,000, exclusive of costs, interest and attorney’s fees, and is otherwise within the Court’s jurisdiction.
What state do you live in? Florida
Thanks for the update Richard. Your original question and my feedback that created this page is from some time ago. Can you provide any updates on what has transpired since then?