What does it mean when the collection calls slow down?

[Quagmire]

As I continue to work on my financial troubles and being at least 120 days past due on most of my credit cards, I have noticed in the past 2 weeks, I am not getting as many collection calls. I am really stressed-out over all of the collection letters that I have been receiving over the past 90 days, and I have only opened just a few of them in the past 90 days. I got one from Chase last week, and they said that if I did not pay at least $1,200 on one card, in the next 15 days, they would file a lawsuit against me and they would either send out a sherif or process server to sever me with the papers, along with letting me know that they plan to garnish my wages upon them winning the judgment. I owe on 2 Chase cards, with about 9K total.

American Express is the first card (with about $3,200 owed) that I am about 140 days past due. They finally stopped calling me about 10 days ago, yet I have not received any phone calls from a collection agency. I got a letter from AmEx about 2 weeks ago, basically stating that if I don’t pay them they will be forced to send my account out for collections and they also pursue legal action against me.

Wells Fargo used to call me every business day, but left one final message (early last week) to call them back and for me to reference a case number (no longer referencing my business credit card with a balance of about 37K). Yet I have mail from them that I have not opened in the past 30 days.

Pretty much the (Wells Fargo thing) happened with another credit card that I have with another bank (with about 14K owed). They called me one final time (early last week), and they have not called since.

Yet thinking about all of this bk mess I have gotten myself into, I was hoping that I would have at least 6 months to drag this all out before getting hit with a lawsuit (based on what others have said, when I first started reading the BK forums back in June of this year). Yet I am going to try to pull myself together and read all of my collection letters (by this coming Saturday) and see how much of a bigger mess that I am already in already. Yet it is so very hard and painful and stressful to read any collection letter I receive (when I feel brave enough to open and read it).

Going back to my original question, I used to get up to about 25 to 30 calls per day, now I am down to about 10 to 15. So I am wondering if my creditors are just going to try to sue me rather than going though a collection agency? Any thoughts? I thought if anything, I would be getting calls from collection agencies (once I was 90+ days past due) instead of still receiving them from the collection departments of my orignial creditors (where all of my calls seem to have been coming from for the past 90+ days).

Right now, I am especially concerned about the Chase collection letter, because it seems that most of the people I have come across in the BK forums, usually have about 8 to 10 months before Chase hits them with a lawsuit. Yet again, maybe the collection letter I got is to try to scare me into paying, then if I don’t pay, they will hit me with a lawsuit in a few months?

Quagmire

[rjmwx81]

Usually the creditor themselves won't sue, they'll turn it over to a law firm. And, at least in my experience, the law firm will try a couple times to get you to settle before they actually sue. So you've got a little time, probably, but maybe not 8-10 months.

[Quagmire]

Thanks Rjmwx81! I feel better now. Based on what you have shared, it will make it a little better and easier for me to open those collection letters. Thanks so very much.

Quagmire : - )

[Dougie011]

I was going to be sued by by a couple of law firms for Citi Bank. They did offer a settlement just before they started going for a judgement. After I told them I wasn't able to pay anything, It only took a month or two before a court date was set for them to try to get a judgement. I think you should have a little time, but I would think that right now, you might have only about 2-3 months before they start trying to get judgements. I wish I filed 6 months earlier because when I did, it was if a weight was lifted and I slept soooo much better that night. Good Luck!

[Quagmire]

Thanks Dougie011, I greatly appreciate that update. I wonder will Citi leave me alone until after December (after the holidays). Yet based on your information, I will try to prepare. If I did not have a house to try to save, I would file Chapter 7 in a heartbeat.

Well it looks like I spoke too soon! : - (

I had a first time call from a collection company about 30 minutes ago. MAJOR FROWN!!! Yet the call I got today was from a company called G C Services (904-306-7446), and I was able to find that via a Google search of the telephone number (via 800 Notes, and Who Calls Me sites). So it is a collection company, but there is only 4 people that have listed that information about their calls from that number. However the two call logs listed under the search has a history of this number going back to June 25, 2008.

On a side note, there is another local call I get (from my own area code) that I get almost daily (that just started on Monday of last week), but they will not leave a message. When I called back on my computer phone, they mumbled something or another like some meaningless letters and the word services (I hung up) . . . so I figure that has to be another collection agency. I ran the number through a Google search, but nothing came up.

I should have kept my mouth closed today : - (

Quagmire

[Quagmire]

Thanks Dougie011, I greatly appreciate that update. I wonder will Citi leave me alone until after December (after the holidays). Yet based on your information, I will try to prepare. If I did not have a house to try to save, I would file Chapter 7 in a heartbeat.

Well it looks like I spoke too soon! : - (

I had a first time call from a collection company about 30 minutes ago. MAJOR FROWN!!! Yet the call I got today was from a company called G C Services (904-306-7446), and I was able to find that via a Google search of the telephone number (via 800 Notes, and Who Calls Me sites). So it is a collection company, but there is only 4 people that have listed that information about their calls from that number. However the two call logs listed under the search has a history of this number going back to June 25, 2008.

On a side note, there is another local call I get (from my own area code) that I get almost daily (that just started on Monday of last week), but they will not leave a message. When I called back on my computer phone, they mumbled something or another like some meaningless letters and the word services (I hung up) . . . so I figure that has to be another collection agency. I ran the number through a Google search, but nothing came up.

I should have kept my mouth closed today : - (

Quagmire

[treehugger1]

I remember GCServices from a long time ago. LOL. I also remember calling them back and asking they send me something in writing. I held my ground (as always) about sharing financial info over the phone and they eventually sent me something US mail. I responded with a request for debt verification and demanded they not contact me by telephone or contact any third party by telephone. I never heard from them again. After a month or so, the debt was sent to a new CA. I can't remember if the debt was from Citi, but I believe it was. After two years of not paying chiti, they did sue me and get two default judgments. They have never acted on their judgments. In December, it will have been a year since they received the first judgment.

Now, with local attorneys garnishing my wages and able to reapply for new garnishment writs after the 90 day writs expire, I doubt chiti will ever see much from a garnishment. I have learned to budget and live very well on 75% of my take-home pay so Screw 'em.

[Dougie011]

I think it also depends on how much you owe each creditor. I owed Citi quite a bit and it seemed to be moving quite swiftly. I had one court date already and the other card with them were pressuring me to make a deal and telling me that it was going to court if I didn't give them my checking info (which is a no no). I hung up with them and made appointments with attorneys and and found one I liked and filed a couple of days after.

[tyson24]

I had one call (for Capital One) after a judgment was attained, and I asked if I could make payments. The guy told me yes, and then said only with a auto pmt from a checking account. the debt was for my husband. I told them I only deal in money orders and I told them I would hand deliver it. He was asking me bank info and I lied to him about my husbands bank info and told them it was through another bank. He said he would take the money order. We hung up, he called back an hour later and said that it had already gone to court so no payments would be taken and they were going to go ahead with garnishment.

That was 6 months ago and they just got a writ of execution on September 2. Set to garnish this Friday or 2 weeks from now. We aren't sure.

My point is, you have a while. These things take time, but every creditor is different and so is everyone's financial situation.

My opinion and experience only

[tyson24]

I had one call (for Capital One) after a judgment was attained, and I asked if I could make payments. The guy told me yes, and then said only with a auto pmt from a checking account. the debt was for my husband. I told them I only deal in money orders and I told them I would hand deliver it. He was asking me bank info and I lied to him about my husbands bank info and told them it was through another bank. He said he would take the money order. We hung up, he called back an hour later and said that it had already gone to court so no payments would be taken and they were going to go ahead with garnishment.

That was 6 months ago and they just got a writ of execution on September 2. Set to garnish this Friday or 2 weeks from now. We aren't sure.

My point is, you have a while. These things take time, but every creditor is different and so is everyone's financial situation.

My opinion and experience only

[rjmwx81]

Well it looks like I spoke too soon! : - (

I had a first time call from a collection company about 30 minutes ago. MAJOR FROWN!!!

This is not necessarily a horrible thing. If it's gone to an outside agency, you can insist that they verify the debt. That will buy you a little time before you have to take action.

The process *usually* goes: 1. Original collector, 2. Outside agency, 3. (Maybe) Another outside agency, or maybe 2 or 3, 4. Lawsuit.

Again, it depends on the creditor, and the amount, so your experience may differ somewhat. But don't feel like you're going to get sued tomorrow or anything. (In theory you could, I suppose, but it's unlikely.)

Also, don't be afraid to open those letters from the collection agencies and creditors. You might want to hold onto them if you're going to be filing BK soon; they can give you a better idea of what the creditor thinks you owe which you can use on your BK paperwork.

[catleg]

Chase is often the first to sue if you are in one of the states where they have in-house counsel (NJ,NY,FL,IL,CA, maybe a few other big ones). You'll always get a 30 day demand letter first. This came when we were only about 5 months past due (i.e. before chargeoff).
Citi was the next one to sue me, through an outside law firm in my state. They seem to get paid piecework, since we got sued 5 separate times on 5 accounts. (Chase filed one lawsuit for 3 accounts).
The Chase accounts have been sold, default judgment and all, to a JDB after we filed ch13.
I don't know what happened to the Citi accounts, as they didn't file a claim in our ch13 (apparently the law firm isn't compensated for filing proof of claim and Citi is all messed up internally.)

[Quagmire]

Thanks Treehugger1, I appreciate your answers. Based on your answers, I plan to do the same thing. I think first when they call and I pick up the phone and they identify who they are, I am going to tell them that I am recording their call (to hopefully motivate them to be professional and nice with their call). Then I am going to request that they send me the debt verification in writing (as I do not share personal information over the phone). Thus hopefully once I receive something in writing from them, I can send them a certified C&D letter telling them not to telephone me or a third party and only communicate with me through writing. As it seems like it is a crap shoot as to where to send C&D letters.

Yet this seems to be a good way to buy time and keep the collection folks off my back for a brief time at least. I am now wondering if this method might work for all of the collectors that telephone me? Mainly I just want to get a mailing/return address from these folks so I can send out my C&D letters (just to stop telephoning me only), so hopefully when they send the debt verification letter, it will have their return address. I keep hearing that if I send out a C&D letter telling them to break all forms of communication with me (telephone, in person visits, and mail), that tends to make the collectors angry and only expedite the lawsuit process. So I at least want to keep the door open for them to always send me mail.

Sorry to hear that Citi is garnishing your wages, yet congratulations for you being able to live with the 75% you can get.

Thanks for your input Dougie011. Yes I too owe quite a bit to Citi. Yet I have several of the credit cards that I owe at least 13K+ on (that are about/near 120+ days past due). They have already called my brother several times (on his home phone number) to try to find me on my Citi Sears Gold MasterCard. MAJOR FROWN!!!

Tyson24, that is good to know and gives me food for thought. So I will try to stay mindful of what might happen if my accounts turn into judgments. I am sorry to hear about your upcoming garnishment problems. I do hope that you and your husband will manage okay through this most unfortunate situation. My thoughts are with you and your husband.

Thanks Rjmwx81. This is good to know, and makes me feel better that I might have more time to try to come up with a solution to my problems. If it were not for my trying to save my house, my BK would be so much easier. For sure, I am going to try to get all of my collection letters read over the weekend, so I have a better idea what is going on, and have that very sad and very unpleasant chore over and done with at that point . . . . until the next batch of collection letters come in. MAJOR FROWN!!!

Thanks a MILLION Everyone for your help and support!

Quagmire

[Freddy03]

I can tell you from my experience -

1st lawsuit came about 60 days after ignoring the collection attorney calls - no letters received - 6K - I lost this case and now have a judgment which is my reason for filing BK.
2nd lawsuit came 5 days after I sent a debt validation letter to collection attorney - no calls received - 10K - case is still pending. I have a court date for their summary judgment in Oct.
3rd lawsuit came about 30 days after I sent 2nd collection attorney a debt validation letter after I received their first letter - no calls - 3K case is still pending. I have a court date end of Oct.

So it varies. I have heard that Chase and Cap One tends to sue quickly.

[wnguyen]

Quagmire

I think you got several useful posts about your concerns. If you don't mind, I'll briefly tell you my story.

First of all, about the calls, I got a lot of calls in the first 2 or 3 months of not paying them, then starting the 4 months, the numbers of call reduced and the letters (all kinds, all sources, you name it) increased. Secondly, during these times, I got tons of letters (I had more than 20 creditors) demanding, offering, and finally threatening to sue me. By the time they decided to sue, it was already into six months delinquent. Citi and Jared started first with threatening letters, and 30 days later, it was their attorneys and another 30 days here come the law suits. I was surprised that Chase didn't, probably because I owed them less than $1000. By the time I was fed up with the threatening letters and when I first received the summons it scared me so I said "OK morons, you sue me then I'll be one step ahead of you to the bk court before you could get a judgment against me."