Wells Fargo sold my unpaid credit card debt. Why do I now owe a debt buyer?
I am in default with a credit card I had through Wells Fargo bank 4 years ago and is now showing as a charge off on my credit report. My account was recently purchased by a debt buyer, who assigned it to a debt collection attorney, who is now suing me, and who also reported it on my credit report.
I have 30 days to file an answer, I am currently receiving workers comp due to a work related injury and do not have the money they are asking for. What are my rights and what do I write for my answer? Do they have the right to take me to court for a debt that is not owed to them?
What are my rights? What do I write for my answer? Do they have the right to take me to court for a debt that is not owed to them?
—Diana
When you got the credit card from Wells Faro the agreement likely allowed for the transfer of ownership of the debt. Charged off credit card debt gets sold in the normal course of banking. Selling off and collecting bad credit card debt is a billion dollar industry.
While Wells Fargo can sell the debt, the debt buyer may struggle to collect.
Debt buyers are very accustomed to filing lawsuits on the credit card debts they buy up, and having the people they sue not respond; raise any defense; and not show up. When you respond to the lawsuit correctly and make them prove their claim, it can make it more difficult to rubber stamp the collections in court.
The issue here is a matter of you preparing your own answer (and getting through the court process and procedures after that), in a way that will be effective. People are successful with representing themselves on issues like this. But there are creditor and debt buyer collection defense attorneys out there who are really good with defending you against debt buyers. You do have to pay them, and there are no guarantees they will win the case or get it dismissed. So weighing the cost of defending vs. settling with the debt buyer Wells Fargo sold your credit card debt to is something you should consider before taking your next step.
I may be able to give you additional suggestions if you can post answers to the following questions in a comment reply below:
What state are you in?
When did you last make a payment to Wells Fargo on the account?
How much was the Wells Fargo balance when you stopped paying?
How much are you being sued for?
Who is the debt buyer suing you?
What is the name of the law firm they hired?
You are on workers comp and may not be able to afford an attorney. You can talk to one for an initial consult free most times. I will try to help you locate one with debt defense experience. I just need you to include your zip code in your comment reply.
You may qualify for low income legal aid being on workers comp – which is worth looking into.
Readers with similar concerns are welcome to post questions and get feedback below.
Update: RAZ posted a comment below that I want to expand on. A great deal of attention has been focused on the collection industry by state and federal regulators this year. A good example would be a new law affecting debt buyers in California that goes into affect 1/1/14. I cover that in some detail on another site: https://blog.credit.com/2013/11/new-debt-collection-law-means-for-you/.
The Fair Debt Buying Practices Act in CA sets higher standards for debt buyers – and ones many buyers are already able to meet. I expect similar standards will result from current rule making being proposed by the CFPB next year. These changes will dramatically impact debt collection agencies, debt buyers, and credit card issuers like Wells Fargo. In fact, changes are already occurring, and in a positive consumer-centric way. Calculating your options to manage your way through dealing with debt buyers has always been important, and new rules will not change that. But reading stuff on the internet about how you should never talk to a debt collector, or how debt buyers have no standing and cannot prove you owe them, will increasingly be viewed as bad advice.
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.
Hello,
I am in a similar situation as Diana. I had a Wells Fargo credit card. Then became unemployed and was unemployed for 6 years. I believe the amount I owed was about $3K. I am unable to pay the amount as I am still struggling financially after being unemployed for so long. A process server has been to my house twice now but I haven’t been home so I haven’t seen the lawsuit details yet. If they attempt to garnish my wages, I will lose my job because of the type of work I do. How should I proceed? Can I make payments to the debt collector? I am in California. Help!
Thank you
You can usually work out payment arrangements with the collection attorney that sued you. Check out that link for more about what to think about and prepare for before you call the attorney for Wells Fargo.
What state are you in?
My husband is being sued papers for an auto loan deficiency in Texas for an auto from 2010. First of all, he was asked to be a co-signer on an auto loan, with all papers were signed, it turned out that he has the primary signer. He never once had possession of the car. Well, the owner defaulted on the loan and the car was repoed back in 2010. Now we are getting calls that the loan has been given to DEVILLE MGMT collection agency and we are being sued. What rights do we have?
I would encourage you to talk over all that happened, and is happening, with an experienced debt collection defense attorney. I can send you a list of experienced ones via email if you like?
Was this a Wells Fargo loan originally?
Yes, this was originally a Wells Fargo auto loan.
What state are you in? Texas
When did you last make a payment?
October 2015
How much was it when you stopped paying? $13,500
How much are you being sued for?
$14,290.54
Who is the debt buyer suing you?
Wells Fargo Bank,NA
What’s the name of the lawfirm they have hired? Mark Rechner
I was paying the minimum until October when we moved. I was pregnant and could not find another job and was unable to continue making payments. I was served the lawsuit on June 28th and must file a written answer. I do not know how to do this. Please help.
Fill in the “Talk to Michael” from in the right column and submit. Those all come to me. I will email you back to set up a time for a phone consult. I need some more particulars in order to give you feedback about steps to take from here.
Assume you are going to need to come up with something like 7500 to settle. Can you raise that amount of money somehow in the next few to several months?
What state are you in? CA
When did you last make a payment to Wells Fargo on the account? OCT 15
How much was the Wells Fargo balance when you stopped paying? ~$10K
How much are you being sued for? only received letter threatening lawsuit
Who is the debt buyer suing you? debt still under Wells Fargo
What is the name of the law firm they hired? Reese Law Group, Carslbad, Ca
I was making regular payments until my husband was relocated for work in NOV 14. I was 6 months pregnant when we moved and couldn’t commute. (My job was now 60 miles away.) I was unable to find new work while pregnant and started receiving unemployment/disability, which I used to continue to make payments. After my baby was born, I became a stay-at-home mom. I stopped receiving payments in AUG 15 and could no longer continue making payments to my WF card by OCT 15. I received a letter from Reese Law Group in MAR 16. After researching online, I responded by asking them to verify the debt, which they did by sending me a stack of paperwork. I have not heard from them since. Is there a timeframe for when they might be serving me with a lawsuit? What should I expect next?
*My husband is our only source of income. Between our mortgage, car payment, and bills, we have no savings and no way to try to settle at this time.
There is really no concrete time line for the lawsuit at this point. The risk is very real and should be anticipate. Wells Fargo has 4 years from when you stopped paying to file a collection action in the court based on California SOL.
Do you have any other household credit card debts?
We have 2 joint credit cards that my husband pays.
I was just served with the lawsuit today. I plan on filing an answer to the complaint as soon as I can figure out how it’s done. I will look into non-profit legal services since I cannot afford an attorney.
Financially, we are not able to pay the debt and I don’t think we can even attempt a settlement. I am not working and don’t plan on working anytime soon, as I just found out I’m pregnant again.
I am not sure how to respond RDA. Did you have questions? Are you dealing with Wells Fargo?
Would it be possible to come out of this lawsuit without having to pay? What’s the lowest amount (percentage wise) that they might accep as a settlementt?
Will they try to put a lien on our home? The title is under my husband’s name only.
Any suggestions on lawyers or legal groups that might be able to help me for free/low cost?
Please post who the creditor is, the balance owed, the name of the collection law firm suing. I can offer better feedback about what is possible when settling with that detail.
Check out my video about what a collector can do with a judgment. You are at risk based on state law.
There are not too many low income legal aid offices around the nation. Try to find one with a search. You can bone up on filing your own answer of general denial which can help you buy time to save up to settle, or to keep your options open without a short filing deadline, which is what you have now.
My husband stopped paying his Wells Fargo credit card on 2011 when I got laid off and we were both on unemployment. Then Wells Fargo sold my husbands credit card of 7k to Viking Client Services. My husband never spoke with them so I set up payment arrangements of $50 dollars at the time and have been paying them since then, and now suddenly the payments are being returned since August of 2015, I have been receiving like 5 $50 dollars payments from online banking. I have received no calls from Viking collection company. I don’t want my husband to get a lawsuit, so why would they now be rejecting my payments?
We live in California and my husband stopped paying Wells Fargo bank on 2011. Then I made an arrangement with Viking about paying them $50 dollars per month.
I would call Viking and find out what happened with the payments and whether they still have the debt. Post an update with what you learn and let’s go from there.
I would also be looking to try to negotiate a lower lumps sum payoff, rather than make monthly payments like you are. Are you in a position to save up money more aggressively now?
I live in Georgia. this is the first time they have said anything about it, if they did in the past I was never contacted. When I had the card in 2007 it was Wachovia, a few years after that they had closed down and Wachovia was bought by Wells Fargo and I haven’t heard anything from anyone until now, last payment I made was in 2008, assets acceptance llc is the law firm who is suing me over this old dept. I did contact Wells Fargo years ago 2009 regarding this dept and they told me they had none of my information and that I would need to try to contact Wachovia which was impossible because everyone I called couldn’t help me back in 2009
I am being sued by old debt through Wachovia bank from 2007, I have not received the paper, a officer stopped by my old address and told my father, they didn’t leave anything with him just stated they needed to talk to me. What do I need to do? This dept is no longer on my credit, it was written off last year. My last payment was in 2008
What state do you live in? Are you sure this would be a new lawsuit, or is it the case that one was filed against you in the past?
Yes I need help with well fargo in which I owe 3500 i have no job n cannot pay the debt back please advise live in pa thanks
Are you current with your payments to Wells Fargo? If you are late, when did you last make a payment?
Do you have any other unsecured credit cards? What are those balances?
I should also add that we are in Ohio and my son was contacted by a “debt attorney” who knew about his case being filed with the local court (I did not receive a letter) . This attorney offered to help for a flat rate fee —
Since we have less than a couple weeks to respond, I would like to know what course of action would be the best. Neither of us were contacted by this company prior to getting the court papers —
What debt buyers like Portfolio Recovery Associates will settle for is often a moving target. I do know that PRA will settle at this late stage for 50 percent. I do not know if they will with you and your son.
How collectable do you look? If there are all manner of collections on your credit reports that are unresolved, the better outcome I generally expect when negotiating with someone like PRA. But if you are paying most everything on time, including other credit card bills, I would be less optimistic.
What do both your credit reports look like?
Filing an answer to the complaint using an attorney could help. How much is the flat rate, and what does it include?
My son and i both received court papers on the same day from Portfolio Recovery Associates about old Wells Fargo account – what should I put in my answer (response) that must be made within 28 days –we each have about half of what they are asking for in the requests for judgements they filed against us against (me about $1000 my son about $2000) – Will this collector settle for half after they have proceeded this far? what is their reputation on this? We could clear this up tomorrow if they would accept about only half of what we owe —
What state are you in?
TN
When did you last make a payment to Wells Fargo on the account?
August 27, 2013
How much was the Wells Fargo balance when you stopped paying?
1064.68
How much are you being sued for?
1064.68 plus court costs
Who is the debt buyer suing you?
Midland Funding
What is the name of the law firm they hired?
The firm of Finkelstein, Kern, Steinberg and Cunningham
I received a summons to be in court June 12, 2015. I just called the law firm to attempt to settle with them after pawning my car. I make $9/hr and live well below the poverty level. The associate at the firm said they wouldn’t settle for anything less than $1000. I only have $600 from pawning my car. I don’t have any other money. I will be starting a new job next month that will pay $12/hr. however, I cannot afford wage garnishment. I have to make rent, if my wages are garnished, I won’t be able to make rent. I will lose my home! I have a family of 5, I am food stamps as it is, I lost my job in 2012, which is why I couldn’t afford to keep making payments. The associate said that they will accept the $600 as a down payment and monthly payments of $50, but that the judgement is coming regardless. I’m not sure what that means, he said that I won’t need to go to court, but they will still have to. I’m very confused. Do I need to consult an attorney?
It is always a good idea to consult your own attorney when you are sued for collection. But with the small Wells Fargo balance sold to Midland, hiring one is not going to make much sense, as the fees for your attorney will be more than what you owe on the Wells Fargo collection.
Midland regularly settles for 50%. You may need to file an answer to the complaint to get the attorney for Midland to be a bit more realistic though. I generally encourage people to settle debts like this for a lump sum, and avoid the monthly payment trap. It sounds like you are in a good position right now to do that. If you want some help, lets talk about it on the phone. You can email me using the same address you get these comment notification from and we can set up a time to talk.
What state are you in?
Georgia
When did you last make a payment to Wells Fargo on the account?
July 2011
How much was the Wells Fargo balance when you stopped paying?
4,400
How much are you being sued for?
5771.33
Who is the debt buyer suing you?
Cach
What is the name of the law firm they hired?
Sherr & McClure, P.A.
Serviced thru the court and putting together answer for the summons on my own.
I admit that I owe the debt, here is what happened, Back in September of 2011 I lost my income (job) went thru a Department of Labor hearing and won benefits, January 2012 benefits stopped due to employer filed a dispute, I had been paying this debt 300-500 at a time to get the debt paid off, In January I had medical issues and was in hospital for two weeks, after released I went on-line to my Wachovia bank to make the minimal interest payment to keep current and the account was gone, I called the Wachovia home office and spoke to a customer service rep (have no documentation to prove the call) she could not find the account, no notes nothing, asked what should I do and she said that someone would be contacting me if it was moved or sold ….. never heard from them, then in 2014 I received a call from an attorneys office in Athens Ga (that is what my caller id showed) saying they are calling on a debt of the amount I gave above, had a nice conversation with this women about how the account went missing from my on-line banking account with Wachovia, she wanted me to pay over the phone at that time, in turn I told her that I didnt know her from Adam and that if she would to send me validation documentation on the sale from Wachovia and send me a copy and then I could make some payments to clear the debt, Never received anything from this women or her office so I wrote it off as someone fishing for money, April 2015 I received a summons from our county court in a summons, this is the first time of me hearing about the company Cach or these lawyers (no calls, no mail, no contact from any of these two companies). I have answered the complaints listed in the summons and have until the end of May to file. I based the reason for the debt being outstanding is due to Lack of standing because of no Debtor or Creditor relationship.
Have you had any dealings with Cach or Creditor not contacting the Credit Card holder?
I have looked on-line and Wells Fargo finalized the purchase of Wachovia in January of 2012 the same time my on-line account went missing (I am thinking that notifications fell thru the hole).
Thank you for your time and look forward in hearing your reply,
Kevin
Cach is an established debt buyer that works with a network of attorneys to collect the debts purchased.
Is your goal to defend the collection suit to its completion?
It is a debt I owe, so i think I should pay it, I would like to have paid it back when i had the funds coming in, but not knowing who owned the debt payments could not be made, I would like to be in a position to pay it down. I have gone for three years not knowing who owned the debt from Wells Fargo.
Well… you can can certainly get to the bottom of who rightfully owns the debt now. You can request all evidence of proper assignment through the discovery process. Cach will go get anything you request if they do not already have it. If they cannot get it, even though they are the rightful owners of the debt, you may just get the case dismissed.
PLEASE HELP ME!!!! Being sued by a debt collector who bought my account from wellsfargo.
Follow up: Hi there, I left this comment here a while back ago. Since then, I’ve received on-going notice of other comments left on this page. I just finished my lawsuit April 16, I was able to get the case dismissed with prejudice. It was a long and stupid process that had me yo yo-ing back and forth for over six months. At my first hearing I was lumped in with a bunch of people, they took role then had pre-trial hearings. I was surprised by how little was expected of me, at no time during the process did I even have to verbalize my defense. The plaintiff attorney tried to settle with me for half the amount and I simply said, “No.” That was literally the only thing I actually did in six months. Mainly, everything else was form filing and showing up for the role call, which I did on three occasions. It was like an elaborate game of chicken between me and the debt collectors, or rather a card game of bull shit. After requesting a discovery, I was sent paperwork from the plaintiff that looked like it might have some gravity to the case. It did not. I took the paperwork to CHARO, a free attorney service that meets every Thursday at 6-8. These people are good, they take every case and work well after their required hours. The CHARO, Attorney pointed out the information sent was little more then a bank statement that did not prove an agreement with me. They gave me plenty of points to use in court. I returned to court ready to fight, after roll call I waited around for my case to be called. When it was, it was dismissed. I was recalled to court again a month later, this time the Plaintiff attorney was present, and once more it was dismissed. I’m still scratching my head over this, months and months of Nothing. Fight on people, being sued is scary but it’s actually just a long boring process. The court I was at in nyc, CHARO is located on the site.
That is awesome Jennifer, great job!
Your right about the process of being sued for collection being a high stress and even scary ordeal for most. But it does quickly take on the tone of a heavy research paper due at the end of the semester.
When did you last make a payment to Wells Fargo on the account? Nov 2014
How much was the Wells Fargo balance when you stopped paying? $20,000 (business cc)
How much are you being sued for? Not being used yet, in settlement dept within Wells Fargo, balance states $23000 with late fees and past due amount of $1500
My husband was injured in a crash and disabled since November 2014. We do not have an idea when he will be able to go back to work. We have a business credit card with Wells Fargo for a business that supports itself but now is having to be a source of income. I contacted Wells Fargo in early December to let them know payments were going to be late or not possible to even make. Not knowing when disability would come in I could not make my December payment. Upon contacting Wells Fargo asking for a reduction in interest rate for a temporary disability hardship I was told there was nothing they could do, no financial hardship agreements were possible with the type of acct this is. (I was put on a financial hardship for 1yr with our personal card which I have been staying on top of, only $60 ea month was due) I was then offered three equal installments of $5k to settle the debt in dec which was impossible for me to agree to. For the last almost 5m I have had weekly phone calls informing them our situation has not changed. Today I got a phone call from the settlement dept with wells and the account no longer shows on my online banking. The gentlemen wants to offer me a settlement of $15k, I don’t not have that kind of money sitting around. In 1w I will be transfer to another person within wells according to this man. He says there is urgency in settling this now as to avoid attorney fees and the full balance. Currently we have $5k we could offer to pay. Do I even offer such a low amount, what do I do?
No idea when my husband will be able to work again but I want this out from underneath me.
Thank you in advance
Wells Fargo will treat consumer and business credit cards differently.
One thing that Wells Fargo will be looking at is if the business is going to stay open vs. one that is closed or closing.
There are some strategies to consider. I would suggest you call in for a consult. It will be me you speak with. If you are up to it, just send me an email (the same address you get this comment notification from), with your number and some times that are good to call.
I did not get an email, I think I didn’t click the box at the bottom. Can you please respond to this again so I will get a notification, then I will respond. I would really like some concrete advice on this.
Thank you
Micheal,
You were spot on, they cannot settle for $3k I offered but were willing to take the $3k off the balance and accept $500 for the next 3m then re-evaluate our acct and situation. He said they would possibly accept $12k which would be roughly half, but that was a huge maybe. Our act will be in wells for the next 30 days with a new guy on the 1st. Going thru the channels, hoping the next guy will have some more wiggly room to negotiate. I made sure to explain EVERYTHING to them and give them as many details as possible so they will understand our situation.
Thanks so much for your help. I will be sure to keep you posted. This has been a very helpful forum.
Michael,
so we offered to settle for 12k making payments over the next few months since that is roughly 1/2 of the balance. The account has already been charged off so the balance has not changed since April 15th. wells countered offered to settle for 13,900 accepting 5 equal payments over the next 5m. If I agree to this they will send paperwork via fed-ex then I have to make payment check by phone. I asked if they could do this amount over the next 6m and he wouldn’t even ask a manager, just said theyes couldn’t go 6m. Not really sure why 1 more month for the same amount makes a difference. By settling I was also informed this will not report to my personal credit. Should I push the issue for that extra month? Should I stick to my guns at 12k not 13,900? it will be a stretch each month but we both want this out of our life.
Thanks in advance.
You can bet pigeon holed as a result of the payment terms being so long. There are account scenarios where the amount Wells Fargo is willing to settle for is not going to budge when the terms exceed a set time, and other minutia.
Having said that, it is usually worth another call or two to try and get the better reduction (12k). The talking points for continued negotiations become very limited when you have monthly payments extended like this.
Hello, The past several years I totally over extended myself with credit card debt. Almost lost my home (bought in 2003) and two cars (bought in 2010 and 2012). My wife and I had credit scores near 800 back then. My wife and I both have good jobs. I had to focus on saving my home and cars, which I did, and now we’re caught up on those. So I stopped paying Wells Fargo Credit card around August 2014, with a balance around $15k. I just stopped paying two other credit cards in Jan 2015, my Chase card with balance around $6k, and my Citi card with a balance around $5k. Chase and Citi seem like they are willing to work with me on some options. But because I ignored Wells, I think it’s gone too far. In September 2014, I received a letter from an Attorney notifying me that they might file a suit against me on Wells behalf. I’ve got no retirement money, or lump sum money to pull from anywhere. I think I can have $500 per month available in June 2015. It’s a very hopeless feeling. Not sure what to do next?
What state are you in? CA
When did you last make a payment to Wells Fargo on the account? August 2014
How much was the Wells Fargo balance when you stopped paying? Around $15k.
How much are you being sued for? The Attorneys letter states $15,529.34
Who is the debt buyer suing you? The Attorneys letter states “retained by Wells Fargo Bank.”
What is the name of the law firm they hired? Land, Richert & Patch
Without the cash resources you would need to fund a settlement on your Wells Fargo credit card, you are left with payment plans (ill advised given the monthly cash flow shortage); defending what appears to be the likely collection lawsuit for as long as possible to allow you to save up money to settle (could buy as much as a year).
Without paying the other 2 credit cards, but considering the lower monthly payment options either offered (if you take them up on it), what amount of cash can you preserve each month? Can you sell an unused item or three to raise cash? Do you have any other resources you can pull together?
I have a different situation. I worked for WF for 20 years. I was let go in Aug 2013. I was also being bullied by 2 people which lead to my work going down. This is why I was let go. I was receiving unemp and my husband lost his job and found work Nov. 2013. We were using the card to live on. Even had food stamps for 3 months. Once I did find a job in Feb 2014 and did find employment but at $9 less per hour. We were also struggling before this and now were served papers yesterday. I closed the card about 9 months ago because I did not want to use it and I told the collection area of the bank at the time that trying to keep my house was more important. I am struggling to keep my house and we are only 1 month behind. Of course we don’t qualify for anything.
We are still having issues trying to keep up with everything. We both have health issues. I now have epilepsy because of the stress, but I cant prove it.
We live in Colorado
I have moved my 401k out of there
I only have a checking. I have a second which I am trying to keep up to date.
I have a small loan we had to get for a new furnace which I hope to get payed off with our taxes.
Not sure what to do now. I am trying to see if there are some friends that are lawyers might get back to me. Still waiting.
We owe $25,300 guess that’s what happens to you when they fire employees
Given the snippets of your finances that you shared, it does not sound like you can pull together the money to settle with Wells Fargo for less than the balance owed. But I should point that out as an option. Can you pull together resources? If so, how much over the course of a few weeks?
You can look into defending the collection suit. It is not easy to beat back original creditors, but it can be done. You would want to connect with an experienced debt defense attorney in CO for a no cost consult. I can send you some contact details to some if you like?
Have you looked into filing chapter 7 bankruptcy? If not, you should consult with an attorney about this option too. It may be the least cost of all your solutions. Do you have much equity in your home? How about other things that you would not want to lose if not exempt from creditors in a chapter 7?
I would start by talking to a debt defense attorney. Answering the complaint with that help will be simple, keep you from a default judgment, and buy you time to consider all of your options.
It is a mess. I have thought of bankruptcy. We owe about $127, have a 2nd for about $25, and then the credit card. The house is worth about $200. One part of trying to get some sort of help with the house with the different programs available we had to see a “financial counselor who was no help. We dont want to loose it of course.
I would love if you can send me some people to contact about this. We are in Denver and I was going to look into the Colorado Bar for someone who does Pro Bono work.
Thanks
My wife had two surgeries in late 2013 and early 2014. I was current on all my cc bills, but I wasn’t able to make any progress with them either. My wife wouldn’t have gotten the surgery if she knew it was going to cause a hardship from her being out of work. I began looking for solutions. To make a long story short, I went with a debt settlement company who did get me one decent settlement with Citi Cards, but no results with the other two. Discover is suing, but I was able to get a settlement just today on my own after revoking my membership with the settlement company. I now have one card left (Wells Fargo) I have little documentation from them but did find an Amortization Schedule that shows I should have owed @ $3122 in Jan of 2014 today with penalties and fees the collections attorney states the balance is $5734 and Iwas able to get them down to $5000. That still seems awfully high. I neede to get that amount lower sinse I am having to use a private individual to help me get out of this mess. Wells Fargo wants me to do a budget with them and also tell them how much and where I am getting a loan from. I told them none of their business. I can possibly settle with them too if they reduce their settlement. I am worried they will see me pay off the other cc and dig in their heals or swoop in like sharks smelling blood in the water. Please any advice appreciated. Even a correct department with Wells Fargo to negotiate settlements would be nice or do they only let collections attorneys do that? Discover talked direct.
Now that Wells Fargo has placed your credit card with a debt collector, they will likely refer you back to the collector. You can confirm that by calling Wells Fargo directly. I cannot offer you a different bank phone number for that purpose.
Who is the collection firm, and do they have offices in your state, or a neighboring one?
If you were to settle this debt in a lump sum, and could negotiate, say half off, how long would it take to come up with the money?
My mom and dad are retired moms on social security and my dad has a pension. My parents had a $4000-$5000 wells fargo CC that was in collections for a very long time then received threatening letters from a law firm regarding a suit and they ignored it mostly they couldn’t afford anything. They’re home was foreclosed then they really shut down…. they recently received a letter from their bank stating a levy was placed on their savings account and all their savings $2400 was taken by a law firm based in San Diego court ordered. They don’t know if they should fight it because they do owe it but they think that the statue of limitations should definitely apply since the CC debt is 7-10years old. Please advise.
What state are you in? CALIFORNIA
When did you last make a payment to Wells Fargo on the account? 7-10 years ago
How much was the Wells Fargo balance when you stopped paying? $4k
How much are you being sued for? $5200 (with fees)
Who is the debt buyer suing you? Mom and dad
What is the name of the law firm they hired? NOT SURE. I CAN FIND OUT.
Contact the attorney I just sent you an email about. Jeremy offers a no cost initial consult, and his practice focuses on exactly the kind of issues your folks have with their old Wells Fargo credit card.
If there are options, and I believe there are, discuss all of that with him and your parents. Please post an update with how you progress.
Thank you. I didn’t receive anything in my inbox. Could you please send it again?
I resent the email just now. Let me know if it does not come through.
My husband and I went to debt consolidation,and paid $384.20 a month for 4 years to help get our credit cards paid.They managed to payoff one but got a 1099c to file with tax and ended up owing the star money.to make a long story short the three other credit card debt one was withdrawn,and shows up on our credit report . the other one they stopped paying and I ended up paying off the balance after a settlement was made of over $800.00 because they stopped representing us because the4 years wwere up an I was told i we would be getting a1099c in the mail for that one now the last one is the big one that a settlement was made by the company that was representing us,for $13900.00 they payed some payments and than stopped in august of 2013 because the contract wasup we didnt know anything.what they did was throw us to another firm and had us send the remaning money which was over $2400.00 to them,and said this firm would help get the Lowes account taken care of this was before they withdrew the charges ,and they knew that Lowes was suing us,than they told us that there was nothing they could do to help us after we send them the remaning money from the escrow that was with the other company,omg people are so crooked and lie lie lie we are worse shape now before we started,and put out so much money nothing left to borrow from he has been getting money from his retirement to pay can’t do that anymore ,now he wants to get money from his life insurance than we have to pay that back so how is that going to help. Need advice do we ignore this lawyer,not that we haven’t tried to pay them we just got caught in a scam that took our money
sinMoney contract was for 4 years they no longer represented us,so the payments they were making on that credit card account have stopped in august of 2013. We were told that all the credit card
debts were taken care of except for the one which was Lowes.instead Lowes is the one that withdrew the charges that show on the credit report this last one is the one where they stopped payments over a year later we get a phone call from a lawyer to collect the debt for $18,000.00 which the settlement amount was for $13,900.00. Take in mine this debt company is not the original credit card company we had our credit card with. My husband has harding of the arteries they call it the widow maker is what he has and vasculitis a rare blood disease that effects the large viens ,arteries. We thought we were doing the right by going with debt consolidation,they took a lot of Monet from us and we are still in debt and got 1099 c form and more to come you multiply $384.20 four 4 years see what you come up with now we don’t know what to do.
Gladys – I am going to need you to be more detailed in order to help you come up with a workable and realistic solutions. Post answers to the following:
1. List all of the accounts you submitted to the first debt consolidation company. List the outcome for each by this first company (whether settlement or payments were completed).
2. List account sent to second company.
3. Who does the attorney collector on the Lowes Citibank card work for? Is there a judgment entered in the court on this account? If so, when did that happen.
List the names of the debt solution companies you worked with, and the dates you signed up with each.
I got hold of freedomdebit relief after I had a heart attack and could not fully pay all my credit cards they paided one fast then nothing for 8 months I paided them 650 a month then in june I was sueied and when I talked to freedom they told me to get a laywer so I pulled out from them and filled bankrucy the only way to go do not trust any of these so called debit relief they will screw you and lied to you hope this helps
PLEASE HELP ME!!!! Being sued by a debt collector who bought my account from wellsfargo.
What state are you in? New york city but amassed the debt in CA.
When did you last make a payment to Wells Fargo on the account? May 16, 2010
How much was the Wells Fargo balance when you stopped paying? ???
How much are you being sued for? 971.00 and court fees
Who is the debt buyer suing you? delaware limited liability company.
What is the name of the law firm they hired? Portfolio recovery associates, LLC 120 corporate blvd norfolk VA, with a location in NY on 100 Park ave.
Portfolio Recovery Associates is the debt buyer. Negotiating a settlement with a dollar amount this low will often make the most sense (assuming the debt is legitimate). Are you able to pull together a lump sum to offer as settlement and avoid this going any further?
I do not have money to settle I have been struggling to find a full time job since I graduated college which was in 2012. What if I changed my address back to my california address then stated in my answer to the nyc clerk that the LLC was trying to abuse the 6 year statue limitation law in New York on a debt that has expired under california law. I’m not on any apartment leases nor do I hold a job in New York, I work as individual contractor so I get paid a day rate. I have been living with a friend in the city for a year but I do not pay rent so technically would I count as a visitor. They are using my mailing address to establish my residency which is how they found me.
I would talk over that strategy with an experienced debt defense attorney before applying it. It would not be something I would try.
Have you looked for any legal aid offices nearby? There is no love loss between debt buyers like PRA and legal aid attorneys. with a limited income you may qualify for low to no cost assistance.
Hi I am in a similar situation. I had a wells Fargo credit card for the third time (twice before I maxed my debt but paid it back in full both times. The first time wells Fargo hadn’t sent it to collections yet and I gave them the entire amount in cash then got a new credit card there and this time they sent it to collections but I contacted the agency and again gave them every Penney I owed. First time the amount was only $200-250, second time the amount totaled just over $500 after the interest raised it etc., now it took this new agency a lot longer like almost a year to contact me, which I got a call 5 days ago and this guy said my debt had increased to $900-1,000 and said I needed to make a payment for $253 that day. I was busy doing something important at the time so just quickly said I always intended to pay wells Fargo back but have been broke, living with my mom, had no valuable possessions or other bank accounts/cards, have been unemployed and currently searching for a job, etc. So I wouldn’t have money to pay that day but would stay in contact then hung up.) I live in Colorado, I’m 24 which I believe is Jennifer’s age, and someone totaled my pathfinder two weeks ago after running into me. I just got the check from insurance and was hoping to use a little of it to make a settlement with them. Knowing the details of my situation I was wondering if I could offer this agency like $300-400 saying I could borrow up to that from a friend and hope they would agree to take a much lower amount knowing with my situation they may not be able to get much anyways. Is that a viable option or what would you recommend I do and if I could make a small settlement what should I offer and expect them to accept?
40 percent is my general target when settling with Wells Fargo directly, and when they have outside debt collection agencies trying to collect from you. You can aim a bit lower, and maybe hit as low as 30%, but I do not see many of those right now.
What you are suggesting you do is the right way to go about it. Who is the collection agency?
Be sure to get the agreement you negotiate in writing. See this report for more about that: https://consumerrecoverynetwork.com/debt-settlement-letters-agreements/
Attorneys for Wells Fargo served my brother and said it was me. We don’t live together and I had not seen him for 2 years. The attorneys got a default judgment despite my brother advising them they had the wrong guy. Then, they tried to serve my brother again for a production of documents hearing. My brother showed them his I.D. They came back and served him anyway two weeks later. They claim to have talked to by sister at her home but she has records showing she could not have been there. I was arrested and didn’t even know there was a warrant. Do I have a case against the attorneys, Wells Fargo and the Process Servers?
Tim – Yes, I do think there is something here to explore with the help of an experienced consumer law attorney. If there are Fair Debt violations the attorney can clearly see, you may not even have to pay a retainer to get the help you need. Let me know the city and state and I can email contact info to the type of attorney you should look to consult with (most would offer a no cost consult too).
Tim – Do you have a copy of the court docs? If so, is Wells Fargo named as the plaintiff, or is there a different company named? I am curious to know if you are dealing with a debt buyer.
Tim – I received your email responses and sent one back to you with contact details to 3 different attorneys in no particular order. It would be great if you posted an update with how things progress.
I met with the attorney Michael recommended today. He said that the junk debt buyers are now having a lot of success with going back to the original creditor and getting all necessary documentation to prove their case. Once a suit is filed you have to respond or they will get a default judgment without having to prove much. Once you file your response the plaintiff then has time (40 days in my state) to get docs from the original creditor and if they are succesful you lose. It’s a gamble to fight a suit, if you know the debt is yours, because you don’t know what the other side has.
Don’t believe all the stories on the internet that say the junk debt buyers rarely have a case. BUT don’t make the mistake of not filing a response because they will win every time.
Good luck!
Thanks for posting the update RAZ. I especially appreciate the advice to not believe everything on the internet about dealing with debt buyers.
It would be great if you posted about your progress as things move along.