Legal Question in Credit and Debt Law in New York
Summons letter from law office
I recently received a ''communication from a debt collector'' represented by a law office in New York. The communication came in what they called a ''summons''. After some research, I discovered that this law firm has been cited in several class action suits for abusive/illegal collection tactics.
Before I proceed, I want to ensure that I am not falling under any violations of the law. The debt is for approximately $1900, which is about twice as much of the original debt originated a few years ago. Is the payment of this debt negotiable? Let's say, I wanted to settle this by paying the original amount without interest, etc... would I be able to contact the orignal creditor and offer my settlement terms directly? Or am I limited to dealing with the collector? If so, are my interactions with them negotiable.
As it stands, they currently arranged a payment plan of $160 per month x12 until the debt is paid. I would like to make a one time payment of about $800 and be done with it.
Any ideas, thoughts, comments will be very appreciated. Thanks in advance for your time.
2 Answers from Attorneys
Re: Summons letter from law office
Sending a summons via regular mail does not constitute valid service under New York's CPLR. You can try to negotiate directly with the original creditor, but once handed to collections, they usually prefer to stay out of it. Try to negotiate a lump sum settlement directly with the law firm, but be sure to get any settlement agreement in writing. If they won't do that, you're at risk of paying a lump sum now and then having them continue to come after you for the "balance". If you need further assistance, you can contact me via email. Good luck!
Re: Summons letter from law office
There are numerous requirements in order to sue a "debt collector" for violations of the law. If you are serious, GOOGLE consumer debt collection law and read up. Usually, clients are instructed NOT to deal with you once a matter is sent to an attorney or agency (but you have every right to try). Don't sign anything that binds you to pay unless you completely understand the terms and conditions. Normally, if you are sued you go to court and file your "answer" to the complaint (is there a reason why you may not owe the money, or all the money?)...Once you file an answer the matter is placed on a list of cases called on a certain day and you have the right to talk to a judge (or a judge's law clerk). Some of them are sympathetic and can suggest a settlement (they don't have the right to impose one however). Many times client's don't want to actually appear in court so you can force the issue a little and then offer to settle...at your terms.
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