Legal Question in Credit and Debt Law in New Jersey

Threatening to sue

I moved from New Jersey about two months ago. Earlier this week I received a phone call from a collections agency representing a company that purchased an old account I had with Bank of America. According to the agency, I owe over 7000.00 in credit card debt. I had received a letter about this issue and responded back to them disputing that I owed the amount of 7000.00. When I called the agency they not only denied every receiving a response from me, they told me the state of NJ was going to sue me and garnish my wages and would not speak to me let alone provide any information. According to a female, they can do this because the acct was opened in NJ, but it wasnt. The reps kept hanging up on me, and when I spoke with a supervisor he said that according to a clause, they were not obligated to share any information with me. The account was closed early this year, I have made payments since then. I want to know is this legal? Because I sent a response, isn't the company suppossed to respond with a copy of a statement or something that shows I owe?


Asked on 7/13/06, 1:49 pm

2 Answers from Attorneys
Debra Palazzo Law Offices of Debra Palazzo, LLC

Re: Threatening to sue

You have been treated unlawfully and you should make a complaint to the FTC. You can file a complaint on line. Collection companies are governed by federal law.

You are correct, they were required to validate the debt and are in violation of the FDCA.

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Answered on 7/13/06, 8:35 pm
John Corbett Corbett Law Firm LLC

Re: Threatening to sue

From what you have said, there are several violations of the Fair Debt Collection Practices Act. Don't take legal advice from a collection agency that is trying to collect a claim against you. They have absolutely no incentive to give you good advice. If you have no residence in the State of NJ, there is a good chance that you can't be sued here. That said, don't make the mistake of ignoring a summons. Even if service is improper, you or your lawyer must file an answer or other opposing papers. If you do not file an answer to a complaint, a default judgment will be entered against you and that can be collected in the State where you live. So, if your're over your head (and you probably are) you need to consult with a lawyer who can give you advice specific to your situation.

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Answered on 7/13/06, 10:37 pm


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