Debt collection lawsuits often should be challenged.
Being sued by a collection company aka lawyers group on behalf of another collection agency. I answered summons and requested validation of debt. I didn't even know whose card it was at first. I received 1 copy of a credit card statement from JC Penny and a charge off statement from JC Penny. I don't believe the amount is correct and the charge off date is 3 days earlier than the minimum payment due date on statement, which is confusing. I requested proof of assignment of debt since its been through many hands and was never sent anything other then the two items i mentioned above.
Is the first credit card statement and copy of charge off sufficent proof of validation in a civil court? Do I have a right to see more proof of purchases and payments if i dont believe this debt to be this high, and don't I have the right to ask to have proof of legal standing on who actually owns this supposed debt?
Can JC Penney or a Debt buyer get away with providing so little for validating a debt?
—cathy
Being sued for collection and getting the other side to properly prove the debt is owed, the amount owed, best evidence, business books and records exemptions, qualified testimony by a person knowledgeable of books and records at JC Penney etc., is something that you would need to do a ton of homework on in order to set yourself up for better odds of success representing yourself in court.
It is often best to have an experienced creditor and collection defense attorney on your side to raise these issues. Hiring an attorney who practices this type of consumer law does cost money though, and there is no guarantee the attorney can get the collection case dismissed. But your odds are going to be better with an attorney than without.
There are many courts that have started to hold “feet to fire” of those who sue in order to collect debt. In fact, laws in a few states have been passed to better protect consumers from unverifiable and unsupported civil claims brought by debt buyers and the like.
You may want to at least consult with an experienced collection defense attorney to discuss your options.
I can possibly help you locate one if you reply with a comment and tell me what zip code you are in.
Also, don’t get hung up on the charge off date and statement payment date.
Anyone with collection concerns similar to Cathy is welcome to post in the comments below for feedback.
About Michael Bovee
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Michael 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, and is a regular contributor to several personal finance websites.
Sorry forgot to leave location. I am located in Los Angeles.
Thank you!
I sent you an email with contact details to an experience consumer law attorney. Jeremy is familiar with PRA lawsuits,and probably the attorney working for PRA too. How much is the collection lawsuit for?
Thank you for your reply. they offered to settle for $1379.40. they are indicating the creditor maybe required to report the amount discharged to IRS.
The IRS 1099c is normal. You may/may not owe tax on this. See this report for more details: https://consumerrecoverynetwork.com/debt-forgiveness-taxes-settled-credit-card/
Hi Can you send a referral Attorney I can speak with. I am scheduled for a hearing debt with JC Penny-(credit collection Portfolio Recovery Assoc.) Thank you, I know it is of short notice.