Legal Question in Credit and Debt Law in Arizona

summons

In 2003 I hired a company to take over my credit card debt and I paid them a set fee every month for 3 years, however in 2006 i started getting phone call from my creditors which said that I stilled owed them the same amount plus interest and late fees. One of the credit card companies wrote it off as a charge off and the other credit card company served me 10 days ago with a court summons. I need help and don't know what to do. I have been out of work for 5 months and don't know how I can pay them or what I can do from here. Please help.. Thanks Janet


Asked on 4/30/09, 1:12 pm

1 Answer from Attorneys
Richard Groves Law Office of Richard Groves

Re: summons

You appear to have two different issues.

#1, it appears that the "debt consolidation company" that you hired may have breached their contractual duties to you. You need to review the documentation that you signed to see if you approved them taking their fees "up front", with no deposit into a trust account for you for the claims presented.

#2, and probably more important to you right now, you have been served with a lawsuit from what probably is a "bad debt purchaser". This is a relatively new scourge appearing in consumer affairs, and very aggressive usually. The debt buyer has to prove that they bought YOUR debt, and that the statute of limitations has not run on that debt.

For the lawsuit, I suggest that you contact a consumer attorney immediately to schedule an appoint to review the documents that you have been served. Remember, you only have 20 calendar days to answer the complaint, or they will get a default judgment against you. DO NOT LET THIS HAPPEN!

If you have any questions, please feel free to call my office to discuss the matter.

Richard Groves

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Answered on 4/30/09, 1:23 pm


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