Capital One Collection Notice

[Anon2k9]

Need some advice, chit-chat, what not on this one:

My father had an heart-attack in June (09), got out of work for a few months, just went back a couple months ago, got behind on his bills. Well my mother negoiated a reduced payment deal with Capital One and has been making her payments. She thought it was all cool.

Today she got a notice from a company call Hosto Collections saying that is she doesn't pay them $3600 (the credit card plus "attorney fees) by 12/28 that they're going to start collections up to and including taking her house. So she's got an phone apppointment on Tuesday to see if she can talk them into taking a monthly payment plan.

They've got her and dad both afraid of losing the house. I explained to her that TN has a $7500 homestead exemption and since the place (at last appraisal) was only worth 10K dollars (a 30 year old single wide mobile home, on a 1/2 acre and in pretty bad shape, and can't past a perk test by the new rules meaning it's not fit for new construction) that the court probably wouldn't touch it. And both her cars have so little bluebook (both are barely running junkers, one was totaled out a year ago) that the court wouldn't be likely mess with them either.

But she's convinced this Hosto Collection is going to toss her and dad out on the streets an take their cars.

Am I crazy in thinking that there is little to no chance of the court doing that, despite of Hosto is threatening?

They filed a Ch. 7 seven years ago last summer, and I told her if she was really worried to get a hold of her attorney and get him to start processing/stalling till she was eligible to file again.

[lrprn]

Today she got a notice from a company call Hosto Collections saying that is she doesn't pay them $3600 (the credit card plus "attorney fees) by 12/28 that they're going to start collections up to and including taking her house.

So CapOne sold the debt to Hosto after making a payment agreement with your parents? Or perhaps Hosto is working in conjunction with CapOne to collect even after an agreement was reached? Either way, what a crappy thing for CapOne to do - no surprise, though.

So she's got an phone apppointment on Tuesday to see if she can talk them into taking a monthly payment plan.

Please do your best to be there for that call. No telling what they will convince her to do as they play on her fear.

Am I crazy in thinking that there is little to no chance of the court doing that, despite of Hosto is threatening?

Given what you've told us, it's unlikely your parents have anything worth taking. What Hosto (a well-known law firm that does debt collection) wants is cash. Your parents are being strong-armed and manipulated to pay.

They filed a Ch. 7 seven years ago last summer, and I told her if she was really worried to get a hold of her attorney and get him to start processing/stalling till she was eligible to file again.

Good advice. I hope your parents take it before agreeing to pay Hosto anything. Also have your parents review the Federal Trade Commission's Debt Collection FAQs so they understand what collectors can and can't do - http://www.ftc.gov/bcp/edu/pubs/cons...dit/cre18.shtm .

I think it's despicable that collectors like Hosto use peoples' fear to get them to pay what's unreasonable given their current financial circumstances. It's too bad that your parents allowed their debt to climb again after filing seven years ago, but perhaps there were unpreventable circumstances involved that you didn't include in the info you gave us (your dad's health problems, perhaps?). I hope they are able to sort out a path that allows them to have some peace of mind.

[Anon2k9]

What's scaring dad a lot is that his company (a trucking company) told him that if he gets a garnishment that they will fire him for making the company liable for his debt. I don't think that's legal-- doesn't stop them from coming up with another reason though, they just can't hand him his walking papers cause of it. Like I told him if Hosto costs him his job, he could probably drag their butts into a civil suit.

[Anon2k9]

So CapOne sold the debt to Hosto after making a payment agreement with your parents? Or perhaps Hosto is working in conjunction with CapOne to collect even after an agreement was reached? Either way, what a crappy thing for CapOne to do - no surprise, though.

Please do your best to be there for that call. No telling what they will convince her to do as they play on her fear.

Given what you've told us, it's unlikely your parents have anything worth taking. What Hosto (a well-known law firm that does debt collection) wants is cash. Your parents are being strong-armed and manipulated to pay.

Good advice. I hope your parents take it before agreeing to pay Hosto anything. Also have your parents review the Federal Trade Commission's Debt Collection FAQs so they understand what collectors can and can't do - http://www.ftc.gov/bcp/edu/pubs/cons...dit/cre18.shtm .

I think it's despicable that collectors like Hosto use peoples' fear to get them to pay what's unreasonable given their current financial circumstances. It's too bad that your parents allowed their debt to climb again after filing seven years ago, but perhaps there were unpreventable circumstances involved that you didn't include in the info you gave us (your dad's health problems, perhaps?). I hope they are able to sort out a path that allows them to have some peace of mind.

Basically how they end up like this was dad's health.

The federal Doc that he sees each year suspended his CDL pending a Sleep Apena check which put him off for the better part of a month, then his eye sight, then he had to certify that his hypertension and diabetes were within legal ranges, on and on a day here a week there month after month, then he had the heart attack which put him out for 4 months, and he's just getting back to running loads. But since he's on restricted duty and his CDL his only good for 90 days at time till he meets his health check goals, his employer cut his pay and reassigned him to a new district, so he's getting less pay and less mileage.

Couple that with industry wide cutbacks and company specific cutbacks, money's just getting tighter and tighter and all Capital one said was "just pay $50 a month on his card, and $25 on hers and we'll just consider the accounts paid". Jump ahead to this week and Capital One having sold off mom's card to these Hosto folks.

[francis]

when it comes to making payment agreements with credit cards.you almost need to put it down in writting.get them to sign it.even though your parents went through a chapter 7 and that time is not up.they would probably be eligable for a chapter 13 to keep the creditor from going after wages.im not an attorney.but this is what i was told by one for our situation.my husbands chapter 7 time wasnt up either.anon2k9 is your dad a cross country trucker????if he is thats a pretty important job.if it wasnt for truckers.the stores would be empty.

[Anon2k9]

What is the waiting period of a Ch. 7, 8 years? I was telling mom today that she just needs to talk to these people, agree to nothing until she talks to her attorney, and if he doesn't want to do a Ch. 13, then go ahead and get their bills together and got to the local CCCS and start their pre-bankruptcy work, then in Aug/Sept '010 (when the 8 year mark rolls around) she can just file another Ch. 7.

[Anon2k9]

Mom talk to them this morning: They're willing to settle for less and do a payment plan. She couldn't get the BK lawyer on the phone cause of the holidays, so she's going to try the payment plan in the short term. This time she was smart and caught them on tape (I tapped the phone this morning) agreeing to the payment plan and acceptance of it as a "effort in good faith to settle the debt". So if they pull this shit again-- pulling out of the deal-- I told her to take then to the AG's office. What this issue was that she didn't pay off her card within 6 months, apparently Capital One thought that since dad had a heart attack that she was going to pay off the card. We're still working on them to get the 33% "penalty" off the debt.

Soon as her BK attorney is back in town, she's going to set up a consultation

[francis]

chapter 7 is every eight years.from the point of the filing date.that idea about waiting to file a 7 later.would work good too.that is what my husband did.

[flyinbroke]

Funny, I have asked both creditors I have defaulted on to put their payment plans in writing before I pay but they insist that they need payment NOW, over the phone. I tell them I cannot and will not give account info over the phone, and insist on any agreements being in writing before I pay. None will play, none are willing to put their money where their mouths are. Neither will I.

(And the robocalls are killin' me...you answer a quick hello and apparently robos don't pick up. I am not putting forth that much effort; they know I answered the phone.)

[Anon2k9]

What kills me, listened to the tape, is that Hosto said on their end, it's done. The payment plan is accepted and they are going to work with her. The toward the end the woman says "But understand, that Capital One can pull this out from us in 6 months and shop it to another collections or legal firm, and we can't stop them". So come June, she might be back to square one and just out her money.

I'm going to get her and dad together this weekend and see if I can get them to go to CCCS and talk to another attorney-- at least a consult-- rather than wait on the attorney they used for their last BK to come back.