How To Handle Attorney Placement Pending on Discover Card

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improvent363
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How To Handle Attorney Placement Pending on Discover Card

Postby improvent363 » Sun May 26, 2013 4:11 pm

I already have 7-8 credit cards, each less than $1000 in debt, in Collection agency. And I just received a letter from Discover that they take legal action against me and get an attorney to obtain a judgement against me IF I don't call them before June 4 to make acceptable payment arrangements.

So based on my situation (I don't have a job for almost a year, and don't have any money to pay at all and not even for my bills also), what should I tell them?

Here is the exact letter I received:

ATTORNEY PLACEMENT PENDING

Attention: (My name)
Regarding: Account ending in 93--
Balance: 2,400

Dear ________
We Have been authorized to proceed with LEGAL ACTION to secure the balance you currently

owe as of May 13 ,2013.

If we do not hear from you by 8:00pm Eastern time on May 31,2013 your account will be

forwarded to an ATTORNEY TO OBTAIN A JUDGEMENT AGAINST YOU.

To stop this action call us immediately to make acceptable payment arrangements.

CALL NOW BEFORE YOUR TIME EXPIRES!

Sincerely,
Dianne Dennis
Cardmember Assistance, Discover Card
1800-347-5518


credit_card_fonz
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Postby credit_card_fonz » Sun May 26, 2013 4:56 pm

The best you can do is speak with them and explain your situation. There was a recent huge lay off in my area and there are just plain no jobs here, I really don't know what people are going to do and there are thousands in your exact situation. The worst they can do is get a judgement, but if you have no income, no savings, no checking, unless you have lots of valuable stuff there isn't anything they can take.

If you go to court, the judge will let you keep a vehicle of reasonable value to search for a job, home of reasonable value, major appliances, retirement accounts, wedding rings, school books and such items deemed too important for the creditors to take. Of course if you drive a new Mercadies, that's a different story. The best you can do is explain your situation, let them know you have no income and would like to pay but have no money or no assets of real value.

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Postby MemberSince99 » Sun May 26, 2013 7:12 pm

I agree with fonz - you can't do anything but call and tell them and see what they do. You simply aren't in a position it seems to do anything.

Nothing to lose at this point by calling and telling them. My hunch is based on the fact you're out of work for so long with no prospects and no money, they will simply have to proceed with legal action (what can they do - they can't wait on it forever either) so they will likely get a judgement against you, but man, that's kind of the least of your worries right now I'd say.

I hope you get something soon. It's a rough economy. I seriously just laugh everytime the propaganda proclaims how much better things are. I know better. So do many of you.

nishant
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Postby nishant » Mon May 27, 2013 9:21 pm

Plaintiff cannot get court Judgement without court hearing. They have to first send a legal notice. Judgement will be given in favor of Plaintiff only if the defendent does not file statement of defence or do not appear for hearing. Before the hearing, there is pre-trial and in most cases, the court advises both parties to come up with mutually acceptable terms.

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Postby MemberSince99 » Mon May 27, 2013 9:57 pm

Hard to imagine what terms could be arrived at if the defendant has no job and no money. That's really the problem.

But when you're in that position, which it's never been quite that bad for me but close, I imagine this is the least of your concerns.

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Postby DoingHomework » Fri May 31, 2013 2:07 pm

nishant wrote:Plaintiff cannot get court Judgement without court hearing. They have to first send a legal notice. Judgement will be given in favor of Plaintiff only if the defendent does not file statement of defence or do not appear for hearing. Before the hearing, there is pre-trial and in most cases, the court advises both parties to come up with mutually acceptable terms.


Are you kidding? With credit card defaults the judgement is almost automatic. You are correct of course that a court hearing is required and the debtor has a right to present a defense. But there is one simple question the court will ask - does he owe the money? Since the answer has already been stipulated to be yes, the plaintiff will get a judgment.

These guys do this dozens of times a day. They will get the judgment. Then they will try to collect it by attaching assets or garnishing wages. Since the OP has no wages and presumably has no assets, they can't collect anything. But they will be waiting to collect as soon as he gets a job or tries to buy a house or car.

I think I can go along with the advice to go ahead and call them. My hesitation would be that, unless you have something to offer in terms of a payment plan that you can stick with, there is little point in calling. If you call just to say you can't pay then they will still get a judgment against you. So the call is pointless and could just possibly hurt you. It's really a tough choice. There is a chance that if you don't call a judge could direct them to make further attempts to contact you which could delay things. But I think that chance is very slim.

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djrez4
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Postby djrez4 » Fri May 31, 2013 7:32 pm

DoingHomework wrote:Are you kidding? With credit card defaults the judgement is almost automatic. You are correct of course that a court hearing is required and the debtor has a right to present a defense. But there is one simple question the court will ask - does he owe the money? Since the answer has already been stipulated to be yes, the plaintiff will get a judgment.

These guys do this dozens of times a day. They will get the judgment. Then they will try to collect it by attaching assets or garnishing wages. Since the OP has no wages and presumably has no assets, they can't collect anything. But they will be waiting to collect as soon as he gets a job or tries to buy a house or car.

I think I can go along with the advice to go ahead and call them. My hesitation would be that, unless you have something to offer in terms of a payment plan that you can stick with, there is little point in calling. If you call just to say you can't pay then they will still get a judgment against you. So the call is pointless and could just possibly hurt you. It's really a tough choice. There is a chance that if you don't call a judge could direct them to make further attempts to contact you which could delay things. But I think that chance is very slim.


It's not entirely automatic. The missing link is that most collection firms "fake" the notice. You really have to serve a person personally, but there are firms that falsify the affidavit of service. Problem is, no one ever shows up to challenge it. Stupid system. And this from the guy on the inside.

(Full disclosure - a lot of the work I do it to collect debts, but on HOA assessments, not credit cards.)
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Postby MemberSince99 » Fri May 31, 2013 7:46 pm

You're a smart guy, I know that djrez4, but why is the system stupid for that? It allows you the chance to show up to challenge it. Isn't the guy who doesn't use all his weapons to defend himself more stupid than the system in this case?

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Postby djrez4 » Fri May 31, 2013 7:50 pm

MemberSince99 wrote:You're a smart guy, I know that djrez4, but why is the system stupid for that? It allows you the chance to show up to challenge it. Isn't the guy who doesn't use all his weapons to defend himself more stupid than the system in this case?


No - the stupid part is that if a plaintiff lies about service, no one is there to challenge it because the defendant was never notified.

There are, however, mechanisms to set aside a default judgment.
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MemberSince99
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Postby MemberSince99 » Fri May 31, 2013 8:05 pm

Excellent point. Being totally honest, I have no idea why more of them don't do this.



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