Legal Question in Credit and Debt Law in Pennsylvania
I had gone through arbitration court and settled with a monthly installment that was taken from my bank account each month. Recently they stopped taking money out. I thought they had perhaps changed the date on when it was to be normally taken out. Shortly after I started getting calls from another junk debt agency saying I owed them the rest because now they owned that debt. They told me to send over all of the court papers and settlement paperwork. I later thought about how that was their job if they're now the new 'owners' of this debt. They called my job which I did not give them the number for and demanded that I pay. I called who I previously was paying and they told me that my account was closed. I asked them why and was told they didn't know what happens behind closed doors. They said it is the responsibility of the other agency to have my information. I told this other company to go and get their information if they want it. I was told pay now or it's due in full. I said well then I have yet to see anything that in professional standards that my account was closed or that you're a part of who I went to court with in the first place. My agreement was between the firm I was paying and myself. This new agency was never named. I said on the phone that I can't pay. They said its due in full. I told them I understood that and said well then take me to court so things can be explained as to why my case was 'closed behind closed doors' and why I'm now legally obliged to pay you. Every site that talks about this new agency says terrible and fraudulent things about them so I don't want to give them my personal info. Should I just wait to have it heard in front of a judge?I'm willing to pay but I'm not willing to pay when I'm not told of what is happening. If they just did things the right way I'd still be paying and that would be that but they don't explain anything. I honestly want to go before a judge where I can at least legally understand.
2 Answers from Attorneys
Please contact my office with more specifics. Based upon the area code that you provided, I can review the lawsuit online and offer a free review. In my opinion, it is almost always a mistake to pay on debt that has been sold. It is almost always cheaper to defend and it is also better for your credit. I offer a free, no obligation review. You have made a statement that you are willing to pay, well, you probably shouldn't be willing to pay. Your debt was sold to a scavenger who likely paid 1.5 cents per dollar for the debt.
I agree with Attorney Artim, but wish to point out a few facts and misconceptions you have. First, you indicate that this was heard in arbitration. Cases under a certain amount must go through judicial arbitration. However, this suggests that a judgment was entered and if that is the case, then you have a lawful judgment against you which you must pay assuming that the new junk debt buyer can present proof that the debt was lawfully acquired by them.
Second, why are you letting people draft money from your bank account? That is a recipe for disaster.
Third, its not the "job" of the junk debt buyer to keep track of payments. Its your job. I hope that you have bank records to substantiate your auto-drafts as well as copies of the settlement/payment agreement. As an aside, even if the debt stayed with the law firm who sued you, it is your job to keep track of the payments, not the law firm's job to send bills or statements.
Fourth, law firms represented somebody who sued you. Whoever that entity is was free to sell the right to collect on the payment to some junk debt buyer. I have had judgments for clients stay with the same creditor and move to a new law firm. And I have had junk debt buyers change, sometimes multiple times even though the client was paying on the debt. It happens and usually the next junk debt buyer will honor the settlement/payment arrangement. However, this occurs often enough that it is not unusual or strange.
Fifth, I'm not sure why you are surprised that they would call you at work. Under the law, they are permitted to call until you tell them, in writing, not to call or they know your are represented by an attorney. And they have ways of getting information about you - its called skip tracing.
Sixth, why are you wasting time and energy speaking to these people? You should do what you should have done from the get-go and get an experienced attorney involved. Since Attorney Artim has so kindly offered his services, I suggest that you take him up on his offer. If not Attorney Artim, then find another attorney to review the court file and paperwork as well as any information sent to you by this new junk debt buyer, who is bound by the Fair Debt Collection Practices Act and must send you written information about the debt within 5 business days after making contact.
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