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Credit Card Company threatening to sue,2 questions?

Credit Card Company threatening to sue,2 questions? Topic: Apply letter of credit
July 17, 2019 / By Cher
Question: I lost my job last yr and had an outstanding balance , I paid most of it off until I couldn't anymore. My money ran out , now I am really behind my payments and the credit card company is threatening to sue me. I have no income and they know that already ?? What should I do ? Another credit card company keeps calling me although I sent them a cease and desist letter ? Should I report them to the FTC ?
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Best Answers: Credit Card Company threatening to sue,2 questions?

Asceline Asceline | 6 days ago
The credit card company does not have to stop collecting the money simply because you have no job. Try to set up payments with the credit card company that you can afford. If they will not do so, then they do have every legal right to take you to court and try to obtain judgment. The only thing you can do is to make sure and SHOW up for court, otherwise they will win by default. The other card that you sent a cease and desist letter to: The FDCPA does not normally apply to in-house Debt Collectors, meaning the collections are still being done by the original creditor. So they can continue to call you.
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Asceline Originally Answered: Credit card company opened up a credit card account without my autorization?
Send a follow up letter indicating you did not authorized opening this credit card account. Ask for written confirmation that the account is closed.

Zeke Zeke
First answer is just as Dixie stated, the original creditor DOES NOT have to follow the FDCPA, and the FDCPA does not provide protection to the debtor. If they do seek civil action in a court, all you can do is to file a motion stating that you are considered "judgment proof" as you have no income. Judgment-proof is the commonly used term but a more accurate term would be "execution-proof"! Although creditors and debt collectors win lawsuits, they still have to collect thus, if you are penniless you are insulated not from judgment but from execution (collection of the debt - at least temporarily). If you lose your "judgment proof" status due to new employment, the creditor or collector can seek a judgment and ask for a garnishment of wages up to 25% of your disposable income (in some states it's less). Once you're employed again, it's better to negotiate a reduced payoff rather than risk a court-ordered judgment. The difference is your credit report will show "debt settled" instead of the more negative "judgment"! If they are aware that you are unemployed, then they certainly are not going to waste time taking legal action unless you have funds in a bank account or own property where they can file a lien on the property. Your best bet is to work with them, if you do find work at a later date, contact them and work out a repayment plan and stick to it. Filing a complaint with the FTC will only tick them off even more and the FTC knows that there is nothing illegal about what they are doing. YOu will only dig yourself into a deeper hole. You can download a copy of the FDCPA at the link I have provided in the source area. Hope this helps answer your question
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Skidbladnir Skidbladnir
Credit Card companies hate to sue and they hate to sell your debt to a 3rd party collection company. All Credit Card companies rather settle a debt then taking the other two routes (Sue and Collection). Only 20% of lawsuits by creditors are successful, 80% of creditor judgments never get collected. This is over $84 billion dollars in America today. Majority file Bankruptcy once they get served. And, because of so much debt that never gets collected, the price of bad debt sold to 3rd party collection agencies has dropped to approximately 10 cents on the dollar. The right debt settlement company with the knowledge and know how can help you. Question for you... Did you "Certify Mail" the Cease & Desist letter? If not, then you need to. This letter should only be sent by Certify Mail. If after Certified mail, and you receive confirmation that collection agency received the letter, then you can file complaints here: https://www.ftccomplaintassistant.gov/ Call a consultant at http://www.bluechipdebtrelief.com/debt-relief-101.html. You don't have to enroll in their program, but they are very helpful and can stir you in the right direction.
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Ophir Ophir
They have the right to sue you, you owe them money and aren't paying it back. They are probably suing you because you sent a cease and desist letter. About the only thing you can do is call them, keep the lines of communication open so they know that you CARE about the fact that you owe them money. You may also want to seek help from a reputable debt management or credit counseling firm.
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Ophir Originally Answered: Will it hurt my credit if my credit card company lowers my balance so i can pay it off?
If you ask them to lower the balance, that means that they would write off part of the debt. Debt write-offs on your credit record will cripple you. What you can do is just pay it off. You can either pay a lump sum or double or triple your payments, with a note that all of the amount over the minimum payment is meant to go directly toward principle. Since you've had the card for a while now, paying it off in short term will not hurt your credit. If you've been making at least the minimum payments on time up to now, it will actually help your credit score. However, whatever you do, do not negotiate for a lower balance owed unless you are in desperate financial trouble. - Stuart

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