Legal Question in Credit and Debt Law in New York
Shady Collection Agency Threatening Me
Out of the blue today I got a letter from a law firm called Cohen and Slamowitz. It's about a credit card I defaulted on 4 or 5 years ago. I'd forgotten all about it-I was having serious health problems back then. It says the current creditor is Midland Funding and the balance due is $1,923.44. The letter simply states ''Dear--name removed-- Our client has authorized us to commence a lawsuit against you. Should you wish to discuss this matter with us, kindly call us at the telephone number set forth above.'' That's it. There's no court date or other info, no deadline to call, nothing. I thought it was just away of scaring me until I did a Google search on this law firm and found page after page of horror stories of people who've been had their bank accounts illegally frozen, judgements granted against them without their knowledge, more than what they owe taken,etc. It appears they are a very sleazy outfit with no problem acting illegally.
That said, I am more than willing to pay the debt I owe, but I can't afford to pay it all at once and would need a payment plan. Should I contact them? I am so afraid they'll freeze my bank accounts-my husband is on them too but I know that doesn't matter. Please advise..I am very scared.
1 Answer from Attorneys
Re: Shady Collection Agency Threatening Me
I have had dealings with Cohen and Slomowitz. It is a collection firm that must - and tries - to comply with the Federal Fair Debt Collection Practices Act. That is why the letter was so short.
The firm cannot freeze any money unless it has a judgment. It cannot have a judgment unless it serves you with a summons (and you default) or unless you consent to the judgment under a payment plan.
If you telephone the firm for the purpose of settlement, under law the firm may not use your statements as an admission of owing the debt. Don't confuse this with signing a settlement agreement - where you would admit to owing the debt. You will probably talk to a paralegal who will offer a payment plan.
For any settlement agreement, make sure that you receive a general release upon full payment of the debt.
Mike.
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