Legal Question in Credit and Debt Law in North Carolina
I received two notices from my local courts that a Recovery company (collection agency) is taking me to court over past credit card bills. Is that legal? And the original company wrote the accounts off and then sold the account to this new company. I know that they sell these accounts for pennies on the dollar, so what I am asking is if they can legally take me to court for the full amoutn owed or for the amount they paid for it? My limit was 500.00 but they are saying I owe over 1100.00.
1 Answer from Attorneys
Yes. It means that a judnk debt buyer (that is what a recovery company is) is suing you. They paid pennies ont he dollar for the right to collect the full amount from you later. And even though your credit limit was $500, interest, late fees and probably attorneys fees have been tacked on.
What you want to do about the debt is up to you. Depending on how long it has been between the date of your date of last payment on the debt and the date on which suit is filed, it may make sense to get an attorney to file an answer for you. As long as nothing has been done (no judgments entered) you can file an answer. If the time has passed, do you want to resolve the debt, either in a lump sum or a payment plan? If you want to resolve the debt out of court, then feel free to contact me. Otherwise, I recommend that you seek the advice of an attorney in your area.
Rachel Hunter
Attorney at Law
(678)-687-9693
Admitted in GA, PA & NC
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