Legal Question in Credit and Debt Law in Minnesota

Re: Take Equity?

It clearly sounds like you may have rights to compensation from the agency due to their apparent violation of the Federal Fair Credit Collection Practices Act.

I would need to investigate further but they have stepped over the line.

I have over 20 years experience in credit and collections lawl. Call or e-mail for further assistance.

Re: Take Equity?

Good Afternoon,

Some of your facts are unclear. However, if a creditor obtains a judgement against you, a lien may be placed against property that you own. This may be done whether or not you are traveling outside the country. You seem to indicate that the debt collector left a message with your sister and was unable to identify the collection agency. This may be in violation of federal and state statutes. You may be best to contact an attorney to discuss this further.

Robert J. Strupp

Attorney at Law, PLC

[email protected]

Re: Take Equity?

Unfortunately, collection agencies are chronic

liars. I am of course in favor of people paying

their legitimate bills and I do not promote

anyone ducking a real bill. However, collection

agencies routinely say that they will do this

and they will do that, which ONLY an attorney

can do and ONLY after a series of legal steps.

When collection agencies say they will take such

actions, they mean that it is eventually possible

if an attorney does all of these things. However

what they are saying is technically a lie. A

collection agency can do NOTHING except harass

you on the phone and by mail. That's all. If

you ignore them, NOTHING will happen. The only

power they have is to dial the phone and send

you letters. And, to my mind, suggesting more

is bordering on practicing law without a license.

However, if the creditor refers the account to

an attorney, the attorney can file a lawsuit

against you. But then you will get your day in

court (assuming you show up). Make sure they

have your address correct so that you don't miss

the court date, that you know about it.

Under the Fair Debt COllection Practices Act,

a consumer debt would have to be filed in the

County in which you live, in Virginia. So they

would have to sue you in Virginia.

You would then get a chance to ask for a trial

if you have any dispute about the amount or the

legitimacy of the debt.

AFTER a court makes a decision, there could be

a court "judgment" entered against you. THEN,

and only then, if you have a court judgment,

they can take steps to collect on the judgment,

including garnishing your bank account,

garnishing your wages, and perhaps selling items

like the condo. However, seizing property and

selling it is a COMPLICATED, relatively LONG

process. Even after they have a court judgment,

it could take them several months to go through

that process, during which you could always pay

off the judgment at any time.

Furthermore, they would have to sue you in

Virginia, but the condo is in New York. SO they

would have to take the judgment up to New York,

a process that would take another 1 to 2 months.

So, people should pay what they legitimately

owe, if it is not past the statute of limitations

(5 years for a written contract, 3 years for a

verbal contract). You may be losing money in

interest by not paying as quickly as you can.

But you should not be sent into a panic based on

the lies of a collection agency.