After 3yrs I was sued by Capital One

[keepmine]

Check and see if the lawyer followed the provisions of NC Senate Bill 974.

http://www.ncleg.net/Sessions/2009/Bills/Senate/HTML/S974v5.html

The first part deals with mortgages but the 2nd part is debt collections.Here's the part pretaining to you.

SECTION 5. G.S. 58‑70‑115 reads as rewritten:

"� 58‑70‑115. Unconscionable means.Unfair practices.

No collection agency shall collect or attempt to collect any debt by use of any unconscionable means.unfair practices. Such means practices include, but are not limited to, the following:

(1) Seeking or obtaining any written statement or acknowledgment in any form containing an affirmation of any debt by a consumer who has been declared bankrupt, an acknowledgment of any debt barred by the statute of limitations, or a waiver of any legal rights of the debtor without disclosing the nature and consequences of such affirmation or waiver and the fact that the consumer is not legally obligated to make such affirmation or waiver;waiver.

(2) Collecting or attempting to collect from the consumer all or any part of the collection agency's fee or charge for services rendered, collecting or attempting to collect any interest or other charge, fee or expense incidental to the principal debt unless legally entitled to such fee or charge;charge.

(3) Communicating with a consumer whenever the collection agency has been notified by the consumer's attorney that he represents said consumer.

(4) When the collection agency is a debt buyer or is acting on behalf of a debt buyer, bringing suit or initiating an arbitration proceeding against the debtor or otherwise attempting to collect on a debt when the collection agency knows, or reasonably should know, that such collection is barred by the applicable statute of limitations.

(5) When the collection agency is a debt buyer or acting on behalf of a debt buyer, bringing suit or initiating an arbitration proceeding against the debtor, or otherwise attempting to collect on the debt without (i) valid documentation that the debt buyer is the owner of the specific debt instrument or account at issue and (ii) reasonable verification of the amount of the debt allegedly owed by the debtor. For purposes of this subdivision, reasonable verification shall include documentation of the name of the original creditor, the name and address of the debtor as appearing on the original creditor's records, the original consumer account number, a copy of the contract or other document evidencing the consumer debt, and an itemized accounting of the amount claimed to be owed, including all fees and charges.

(6) When the collection agency is a debt buyer or acting on behalf of a debt buyer, bringing suit or initiating an arbitration proceeding against the debtor to collect on a debt without first giving the debtor written notice of the intent to file a legal action at least 30 days in advance of filing. The written notice shall include the name, address, and telephone number of the debt buyer, the name of the original creditor and the debtor's original account number, a copy of the contract or other document evidencing the consumer debt, and an itemized accounting of all amounts claimed to be owed.
This article is interesting as well:

http://www.allbusiness.com/government/government-bodies-offices-legislative/14523542-1.html

BTW, while wages can't be garnished in NC, they can levy/freeze your bank accounts.

[dean407]

I wanted to update this thread.

I filed BK and went to the meeting last month.

Out of perhaps 40 or so people no creditors showed up at all.

I was 2nd to last- it took 3hrs to get to me.

I was done within 3 minutes.

Got the discharge last week.

Upwards and on wards...

[GoingDown]

Thanks for updating this information for us. So often people post a question and then never come back to let us know what happened with them.

Good for you on the discharge!




As a side note, CapOne was the only creditor to ever sue me, and they were quick about it. I was sued by them after only about 3 or 4 months of my credit card bill getting past due. The weird thing is they sued me in Virginia. I have never even stepped foot in Virginia.

After they got the default judgment, they called me and said they were going to take my boat (I've never owned a boat!) and that they were going to garnish my wages (HA! Good luck!) etc., etc. They did anything but call me on the phone and from time to time they sent a "new" credit card offer that would transfer the old balance to a new credit card-- what? did they think I was stupid?!

Now I haven't heard from them in years. And I don't think I ever will.

[jacko]

Crap One was the only CC issuer to sue me. And they waited at least a year to do so. The other issuers looked at my credit report and did not sue, just send the collection letters. I past the three year mark on most accounts. I see no reason to file until I get the alleged back taxes resolved.

Thanks for updating this information for us. So often people post a question and then never come back to let us know what happened with them.

Good for you on the discharge!




As a side note, CapOne was the only creditor to ever sue me, and they were quick about it. I was sued by them after only about 3 or 4 months of my credit card bill getting past due. The weird thing is they sued me in Virginia. I have never even stepped foot in Virginia.

After they got the default judgment, they called me and said they were going to take my boat (I've never owned a boat!) and that they were going to garnish my wages (HA! Good luck!) etc., etc. They did anything but call me on the phone and from time to time they sent a "new" credit card offer that would transfer the old balance to a new credit card-- what? did they think I was stupid?!

Now I haven't heard from them in years. And I don't think I ever will.

[GoingDown]

From what I can tell, they seem to top the list in terms of filing lawsuits, whether or not the debtor is judgment proof. They don't seem to factor that information into their decision to file a lawsuit.

But yes, I think most of the other creditors will look at credit reports, look for employment information, and look for assets before they file a lawsuit.

What I found interesting, at least in my situation, was that CapOne was quick to file the lawsuit, but then they didn't seem to be very interested in following up afterward to get the judgment paid. They made a lot of phone calls, but that was it. They didn't bother doing anything else against me other than the rude and angry phone calls.

So, I think they use the shotgun approach to filing lawsuits-- they sue almost everyone who defaults and then after they get the judgments, they look to see who can pay them and then go after those people.

Their judgment is now over 5 years old. Arizona has a 5 year statute of limitations for judgments-- if they aren't renewed at the end of the 5 year period, the judgment becomes worthless. What complicates this matter is that they filed the lawsuit in Virginia, not Arizona, and they have never bother to "domesticate" the judgment in Arizona, so I'm not sure what happens in this case.

[jacko]

So if they look at a credit report which entails a foreclosure, numerous CC charge off's, student loan in deferment and two judgments(the other being a HOA one), they would look no further such as brokerage accounts etc? When I get my tax issues resolved, I may still not file. I will let my CC report speak for it self. There will be a time when I may have excess cash laying around and want to park it somewhere safe. This may sound crazy, I discovered you can purchase dividend stocks directly with the company for no brokerage fee except for the cost of a postage stamp and money order check. I can get into a utility holding for as little as $250 worth of shares to begin with that will pay $8-$12 per year in dividends. No bank will pay that in interest on that amount. I will never again regardless of my current situation keep all my dough in one basket. That is why I am considering building a portfolio over time to purchase $250 worth of shares from quality dividend firms like up to 40 of em and let the dividends reinvest for free. There is so much you can put on those debit cards.

From what I can tell, they seem to top the list in terms of filing lawsuits, whether or not the debtor is judgment proof. They don't seem to factor that information into their decision to file a lawsuit.

But yes, I think most of the other creditors will look at credit reports, look for employment information, and look for assets before they file a lawsuit.

What I found interesting, at least in my situation, was that CapOne was quick to file the lawsuit, but then they didn't seem to be very interested in following up afterward to get the judgment paid. They made a lot of phone calls, but that was it. They didn't bother doing anything else against me other than the rude and angry phone calls.

So, I think they use the shotgun approach to filing lawsuits-- they sue almost everyone who defaults and then after they get the judgments, they look to see who can pay them and then go after those people.

Their judgment is now over 5 years old. Arizona has a 5 year statute of limitations for judgments-- if they aren't renewed at the end of the 5 year period, the judgment becomes worthless. What complicates this matter is that they filed the lawsuit in Virginia, not Arizona, and they have never bother to "domesticate" the judgment in Arizona, so I'm not sure what happens in this case.

[keepsmiling]

Sounds like some hamsters are due to make an appearance. Thanks for updating and Congrats!!

[DYLAN150]

When you guys talk about being sued, what kind of credit card debt ($) are you talking about?

[GoingDown]

This may sound crazy, I discovered you can purchase dividend stocks directly with the company for no brokerage fee except for the cost of a postage stamp and money order check. I can get into a utility holding for as little as $250 worth of shares to begin with that will pay $8-$12 per year in dividends. No bank will pay that in interest on that amount. .

Very interesting! I have heard from some friends and family who invested in various local utility companies and their investments are doing very well for them also.

When you purchased these stocks, how much personal information did you have to give them? Did they require your S.S. #, and if so, did they pull your credit report? Or did they just passively collect the information, and not verify it?

Unless they pulled your credit report, I think it would be difficult for a creditor to figure it out with doing a debtor's exam, which is very rare.

I say this because the creditors who called us about a deceased relative's estate had no idea that he had a large amount of stocks. Had they known about them, they might have been more agressive. But they never mentioned them to us.

[GoingDown]

When you guys talk about being sued, what kind of credit card debt ($) are you talking about?

Surprisingly, my CapOne debt was very small. Less than a $500 balance on it, and it was over the credit limit at that point.

I think this is why they sued me in Virginia rather than Arizona. The balance on the card didn't justify the cost of a lawsuit in Arizona and Arizona attorney fees.

With all the fees they added to it while getting the default judgment against me, it ballooned up to about $1500.

They never got a penny of it.

[DYLAN150]

Goingdown: I thought they had to sue in the county you live in? BTW, all of my debts are plus 8k or more.

[GoingDown]

I was surprised about it, too!

It came in the mail directly from the court and said "Warrant in Debt" which scared me until I looked up what it meant. It was merely a summons to appear in court in Virginia. I didn't bother going all the way to Virginia and they got a default judgment against me.

This is just my guess, but I think when the debt is so small, they just try to pull a fast one and sue people in Virginia, where Cap One is headquartered. I also think this is why they never bothered to "domesticate" the judgment in Arizona. They probably knew at the time that what they were doing was wrong and I could fight it in Arizona when they tried to domesticate the judgment.

The judgment did appear on my credit report, unfortunately, and they did make a lot of calls about it, saying they were going take things from me and garnish my wages and checking account.

It did get me to close my checking account and go to a mainly cash basis, and for that, I am actually thankful to them. I have saved so much money by using mainly cash. I no longer do any impulse buying, and if I run out of cash while shopping, then I am done spending for that day.

[jacko]

When you fill out the forms online or via US mail to the firm, you have to provide your SS or IRS tax reporting number. There is no credit check whats so ever. Only the IRS, you and the firm know. You have to pay taxes on the dividends which are taxed at 15% I believe. Your creditors will only know if you tell them. I would never acknowledge even to my blabbing relatives. There are so many firms out there you can by direct that are paying nice dividends. The trick is to start building a portfolio of $250 per firm. Germany's main telekom firm has a current 8% yield. I will never buy another mutual fund again. They do not have your interest at heart just like your creditors and debt settlement firms.

Very interesting! I have heard from some friends and family who invested in various local utility companies and their investments are doing very well for them also.

When you purchased these stocks, how much personal information did you have to give them? Did they require your S.S. #, and if so, did they pull your credit report? Or did they just passively collect the information, and not verify it?

Unless they pulled your credit report, I think it would be difficult for a creditor to figure it out with doing a debtor's exam, which is very rare.

I say this because the creditors who called us about a deceased relative's estate had no idea that he had a large amount of stocks. Had they known about them, they might have been more agressive. But they never mentioned them to us.

[treehugger1]

Goingdown, That is the rub. While you could have answered with an argument for proper jurisdiction, $500 probably was not worth the cost of filing an answer based on improper jurisdiction. Sneaky buggers.

I was sued by C for approximately $2300.00. I've heard of C suits down to $300, but I seldom hear of a C1 suit for the larger credit card balances. It does happen, but there seems to be no method behind the initiation of suits.

It can also depend upon whether or not an attorney can sue you in small claims (very cheap.) In Oregon, attorneys are banned from small claims, so they must use the circuit court which is costly and more bogged down.

[IamOld]

Guys, what Cap One does is that they sue everyone in Richmond (city of) General District Court (Small Claims part) in VA - they do this because they do NOT use outside counsel - otherwise, lawyers are prohibited in VA small claims courts. You CAN request a change of venue from VA GD courts for free...or have it dismissed "long distance" for want of jurisdiction...