First time posting. I know student loans are a hot topic right now but is anyone here dealing with credit card debt? It wasn’t a lot, about $2500, but now I’ve been sued and I’m at a loss. Anyone have any experience with this? Am I in the right place?
Has the court date already happened? The most important thing is to show up!
Credit card debt is often sold on the secondary market for pennies on the dollar, on average about $0.04 on the dollar. So if a debt buyer bought your $2,500 debt they might have spent about $100 for it. The trouble is, they don’t actually spend the time and money to keep track of the legal paperwork showing they are the rightful owners of the debt. They sue everyone expecting most people won’t show up to court, and then win a default judgement against them to start garnishing wages. But if you show up, they have to prove the debt is legally owed. Sometimes they can present the paperwork. Sometimes they can’t. If they can’t, the judge should rule that the debt is not enforceable.
Sometimes it is the original creditor, in this case CapitalOne, who takes you to court. In those cases they almost certainly can prove that the debt is legally owed, but you still have leverage.
In either case, you can also negotiate a settlement. If you can get them to settle for, say, $150, it would be worth their time. It is more than what a debt buyer paid, and it is more than what it would cost Capital One to hire lawyers to fight over this.
You don’t need a lawyer to do any of this. I should say that I am not a lawyer and I cannot give you legal advice. But if you want to talk to a lawyer starting with your local legal aid society is a good place to start.
The main thing to keep in mind is to show up! Dispute the debt and force them to prove their case.
Thank you so much Thomas! I still have a couple days left to respond, and I’m drafting a response now. I talked to the courthouse where the suit was filed, and I’m feeling much better about this.
Hi Shellee, It is always stressful when dealing with these things too. I know that CC debt/settlements are like settling medical debt. You may be able to negotiate a lower amount and payment plans. Dont forget to request the debt be taken off your credit report fully when paid in full. Some companies will do this so that there are no negative notes—some companies won’t. Dont make any payments without anything in writing first and don’t give them access to your banking information. Ask for a letter from the company that the debt has been Paid In Full, make copies for yourself, email it to yourself, and keep that letter in a safe spot if this debt magically appears down the road in 10-20 years (it does happen). You can also google reviews and experiences with Capital One settlements to get an idea of what they may pull. I hope that helps! -AD
I’m totally disabled on SSDI and have had ti deal with collections over cards. They all know I’m on SSDI and know they cannot garnish it. I just tell them off.
Don’t let going to court intimidate you. If you are working, their attorney will be willing to work a deal as long as you’re willing to work with them.
I’ve been sued three times, two of the three I was the only one who showed up at court, those were just dismissed. There third one the lady tried to get me to settle before we went in to the court room. I said no, submitted my request to her and the court for proof. Judge gave them 30 days, they never showed up to second hearing. I just used one of those free letters you get online to ask for proof, didn’t cost me a dime and it took these accounts of my credit.