CC Collector Wants Power of Attorney?

[Seenthelight]

Hired my lawyer today and paid the $750 retainer. What a relief right? I was anxious to answer the phone now to give my creditors the information. I'm only about a month late one card and a few weeks on the others so the callers are all original creditors.

I just got my first call of the day from First National Bank of Omaha. After explaining the situation the guy said he refused my lawyer's name and # - said it didn't matter and then said he needed a "Power of Attorney" statement from my lawyer. He also said the calls will continue. Huh?

Has anyone had this experience?

[MSbklawyer]

Hired my lawyer today and paid the $750 retainer. What a relief right? I was anxious to answer the phone now to give my creditors the information. I'm only about a month late one card and a few weeks on the others so the callers are all original creditors.

I just got my first call of the day from First National Bank of Omaha. After explaining the situation the guy said he refused my lawyer's name and # - said it didn't matter and then said he needed a "Power of Attorney" statement from my lawyer. He also said the calls will continue. Huh?

Has anyone had this experience?

Until you've actually filed the bankruptcy, the bankruptcy law gives you no protection. However, since he is a third party debt collector, you should be able to shut the calls down with a cease and desist letter per the FDCPA. But usually, creditors do stop calling when you tell them that you are filing bk, because they realize that you are not going to be a profitable target.

A power of attorney? Don't tell me. This guy was calling you from Bum#$ck Afghanistan, right? If English had been his first or second or even third language, he would have said that he needed a letter of representation from your attorney.

[backtoschool]

I think he means that your lawyer needs to send a letter that he is handling all calls for you.

And the collector is right that until you actually file, they can keep calling you.

[catleg]

I think somebody needs to set up something like the "Law office of Joe Pezzuto" just as a service bureau to take calls from creditors. Sounds like an interesting business idea for somebody, maybe charge $25 a month just so people could say "talk to my lawyer".

[catleg]

BB is right of course. There's no hiding from OC's.

I read that there are perhaps 400,000 people worldwide engaged in "gold farming", which means playing online games for virtual currency to be sold for real currency, and that China banned this in July 2009. gold farming - wikipedia

So I think I know where I can get the staff for a call center to handle OC phone calls on behalf of debtors. Hey if they can talk while they click it's a 100% productivity improvement.

[Never_Again]

One of the most relieving parts of the whole process for us was giving creditors our lawyer's name and phone number. In fact, we came home from the lawyer's office at 5:30, and I immediately set my phone up to come off going straight to voice mail.

Within five minutes, it was ringing. I picked it up, and let them make their speech. When they got to "do you want to make a payment?" I told them, "I have retained counsel in the matter of filing for bankruptcy." Usually they would ask for a case number (some were smart enough to know that I had just retained counsel, and didn't have one), but I gave them my lawyer's name and phone number, and asked that all future communication be with him.

Within a couple of days, the calls were done. It was like setting off a nuclear bomb.

GMAC very rudely told my wife that "calls will continue until you file." She said that was fine, and that they would be greeted with the same information each time. But, they were welcome to call until then if they liked. I don't think that they ever called back. They did send another letter though. I think that another creditor might have said the same thing.

Our lawyer told us that very few of our creditors had actually called his office.

A business associate of mine that felt that I owed them money had actually started the arbitration process (fancy name for lawsuit, but supposedly more "friendly.") We filed, and they were notified. Three days after our 341 meeting, I received a letter from the arbitor with a date for arbitration. I received a letter the same day from their lawyer's office basically saying "Ooops... we weren't supposed to send you that, please ignore it."

Bottom line, your calls will stop when you retain a lawyer. If someone keeps calling, you give them your lawyer's name and phone number, and hang up. They won't do that for long either. I would make sure that I had actually, in good faith retained a lawyer (even having him paid for is not a bad idea) before you do this.

I even had a couple ask my wife if we had paid for our lawyer in full. My response would have been "None of your busienss," but I suspect that they were just trying to see if you were making a payment arrangement, and there was a chance that you might not file.

[MSbklawyer]

There is a particular kind of "client" who will come in and make a $100 or so down payment on a bk. Then he will tell all the collectors that he "has filed bankruptcy" and give them the lawyer's name and number. The collectors, thinking that he has actually filed, stop collection efforts. But the lawyer never sees the "client" again and ends up fielding hundreds of phone calls from collectors wanting to know a case number or an expected filing date. It is for this reason that I don't accept less than a $500 deposit toward a bk.

[Seenthelight]

I talked to my lawyer and he said that 90% of the creditors will stop the calls out of courtesy and because most realize it is not a good use of their time. He said there are a few creditors out there that can be very nasty and will continue to call in spite of someone hiring and paying an attorney. He told me that if a creditor continues to call, it can be a form of harassment (although they have a right to call) and wants me to let him know asap and he will handle it. I think I hired the right man for the job. He is very deliberate and confident in everything he says. That is a relief. I'll wait and see if the calls from that creditor continue. Thanks for all the input.