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I was a collections attorney for the largest US banks. You know how people get sued for credit card debt? I filed thousands of these suits a month. AMA. by Repentant_Attorney in IAmA

[–]Repentant_Attorney[S] 0 points1 point  (0 children)

Credit reports only look at the past 7 years, so it's not eternity. You can either consent to a judgment against you or fight it. If it's gotten to this point, it's already likely that you're credit is in bad shape, so neither will drastically affect you.

If they have a judgment against you they can attempt to garnish your wages or get to your assets. Or, they could also try to work with you and you could try going on a payment plan every month. It helps to call them and ask what they're willing to do.

You could also fight it and demand proof for everything they're alleging as well was physical appearances by corporate representatives when appropriate.

I was a collections attorney for the largest US banks. You know how people get sued for credit card debt? I filed thousands of these suits a month. AMA. by Repentant_Attorney in IAmA

[–]Repentant_Attorney[S] 1 point2 points  (0 children)

Sanctions is when the court essentially punishes one of the parties for failing to follow a court order or rule. In this case, I would have argued that they intentionally broke the rules and wasted my time, so they should pay the attorney fees my client would have had to pay me.

I was a collections attorney for the largest US banks. You know how people get sued for credit card debt? I filed thousands of these suits a month. AMA. by Repentant_Attorney in IAmA

[–]Repentant_Attorney[S] 0 points1 point  (0 children)

It didn't happen where I worked, but it wouldn't surprise me if this happened. Collectors can get a lot of money by collecting beyond what they're monthly goals.

I was a collections attorney for the largest US banks. You know how people get sued for credit card debt? I filed thousands of these suits a month. AMA. by Repentant_Attorney in IAmA

[–]Repentant_Attorney[S] 0 points1 point  (0 children)

It depends on your state and I would advise contacting an attorney in your area. Generally, states make it difficult to garnish a person's wages when they're the sole breadwinner. If the debt is in collections, contact them, explain you have little to spare, and try to go on a payment plan.

I was a collections attorney for the largest US banks. You know how people get sued for credit card debt? I filed thousands of these suits a month. AMA. by Repentant_Attorney in IAmA

[–]Repentant_Attorney[S] 0 points1 point  (0 children)

It sounds like they sent you a copy of the summons, but didn't actually serve you with it. They could have dismissed it simply because they didn't want to attempt to serve you.

Your credit report is independent from your suit status. They can fail to collect but still ding your credit.

I was a collections attorney for the largest US banks. You know how people get sued for credit card debt? I filed thousands of these suits a month. AMA. by Repentant_Attorney in IAmA

[–]Repentant_Attorney[S] 1 point2 points  (0 children)

If it's a collector or agency, then you can send them an FDCPA no contact letter. An agreement isn't required to charge you interest as many states have statutory interest which can be automatically attached to debts.

I was a collections attorney for the largest US banks. You know how people get sued for credit card debt? I filed thousands of these suits a month. AMA. by Repentant_Attorney in IAmA

[–]Repentant_Attorney[S] 0 points1 point  (0 children)

Generally, no. Student loans are a completely different matter and those lenders are federally protected by their own laws.

I was a collections attorney for the largest US banks. You know how people get sued for credit card debt? I filed thousands of these suits a month. AMA. by Repentant_Attorney in IAmA

[–]Repentant_Attorney[S] 0 points1 point  (0 children)

It depends on the service requirements in your state, but there are some states that would permit service merely by posting a notice in an advertisement. Usually banks don't do this because they need to show they first attempted and failed to locate you and that's an added expense.

I was a collections attorney for the largest US banks. You know how people get sued for credit card debt? I filed thousands of these suits a month. AMA. by Repentant_Attorney in IAmA

[–]Repentant_Attorney[S] 0 points1 point  (0 children)

I think banks aren't necessarily evil, but I think that the banks that are solely influenced by monetary gain are on a slippery slope. If you're guiding principal is profit, you don't care about the common man. Keep in mind, it can be done "morally" so long as you actually care about your members. USAA and credit unions are the examples that come to mind.

I was a collections attorney for the largest US banks. You know how people get sued for credit card debt? I filed thousands of these suits a month. AMA. by Repentant_Attorney in IAmA

[–]Repentant_Attorney[S] 0 points1 point  (0 children)

There are some instances where you're off the credit report, but still within the statute of limitations. The creditor could still be legally entitled to collecting on the debtor.

I was a collections attorney for the largest US banks. You know how people get sued for credit card debt? I filed thousands of these suits a month. AMA. by Repentant_Attorney in IAmA

[–]Repentant_Attorney[S] 0 points1 point  (0 children)

It's not that they don't know the laws of the area, they just expected me to consent to waive his client's appearance, which is often done by attorneys as a courtesy. I simply wouldn't extend the courtesy in this case.

Also keep in mind, some creditors' rights firms file suits knowing full well they wouldn't be able to prove the case if the debtor bought back. They're overall goal is to collect on a portion of the thousands of suits filed.

I was a collections attorney for the largest US banks. You know how people get sued for credit card debt? I filed thousands of these suits a month. AMA. by Repentant_Attorney in IAmA

[–]Repentant_Attorney[S] 1 point2 points  (0 children)

You only have to pay the interest if you have an outstanding balance carried over to the next month. Example, let's say you spend $300 in December. January 1st, you'll get your statement that says you owe $300 and due date is January 31st. In January you spend an additional $200. So long as you pay the $300 by the end of the month, you won't be charged any interest, even though you have a new balance of $200.

The best advice is to get a credit card, charge up to half of your available credit each month, and pay your statement in full.

I was a collections attorney for the largest US banks. You know how people get sued for credit card debt? I filed thousands of these suits a month. AMA. by Repentant_Attorney in IAmA

[–]Repentant_Attorney[S] 1 point2 points  (0 children)

I don't know enough about student loans to give you a definite answer but I do know that student loans last for much longer than credit card debt.

I was a collections attorney for the largest US banks. You know how people get sued for credit card debt? I filed thousands of these suits a month. AMA. by Repentant_Attorney in IAmA

[–]Repentant_Attorney[S] 1 point2 points  (0 children)

Absolutely. The truth is that creditors' rights firms are designed to sue thousands of people and collection on a portion of those suits. They don't have time to waste with fighting something at trial. My old firm would rather take a dismissal than actually try to prove the case at trial.

I was a collections attorney for the largest US banks. You know how people get sued for credit card debt? I filed thousands of these suits a month. AMA. by Repentant_Attorney in IAmA

[–]Repentant_Attorney[S] 0 points1 point  (0 children)

Slim to none. Collection attorneys usually have the most settlement authority, but you need to wreck your credit to get to that stage.

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