Legal Question in Credit and Debt Law in Texas

Threat of Judgement

Hello:

I have an account that has been charged off since 07/97. The original creditor sold the account to a debt collection agency. This agency has retained a law firm to receive their money. The attorneys have been decent in trying to work with me on a settlement. However, they informed me that I couldn't make 'payments' to them and expect to receive a lower amount than what the balance of the account is (late fees, interest and base amount). The law firm informed me that it would only accept on lump sum or if I decided to send them payments that the payments would go toward the outstanding balance and I would still be incurring interest on the account until the full lump sum of the settlement was paid.

Is this standard practice?

They have also threatened to file a judgement against me and informed me that I wouldn't have to be notified before a judgement was filed against me. They said that an ad could be submitted to the newspaper and this would serve as notification. Is this true?

I appreciate your response.


Asked on 2/11/04, 7:27 pm

1 Answer from Attorneys
Peter Bradie Bradie, Bradie & Bradie

Re: Threat of Judgement

There are a few issues here, not the least of which is citation by publication when the whereabouts of the defendant cannot be determined. Taking everything you said at face value, the law firm is definitely outside the Fair Debt Collection Practices Act.

I suggest you speak with a lawyer in your area that is familiar with the Act.

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Answered on 2/12/04, 10:04 am


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