Legal Question in Credit and Debt Law in Virginia
Credit Card Debt in collections
I had a credit card, always pd. on time, until a house fire in 1996, we were uninsured and suffered a huge loss. I made some late payments, and the interest rate went to 20%. June of 1999,I called the bank to enroll in a hardship program. I made those payments until Nov. of 1999, they sent a letter stating they destroyed the check I sent, because it was written from a closed acct. I still use that same acct., it was NEVER closed. They removed me from the program at that time, & sent it to collections. I assumed I could make payment arrangements with them . I heard nothing for months, then I got a call from a lawyer, demanding that I pay HIM, IN FULL NOW, or he would add attorney fees to the debt & put a lien on my home & garnish my husbands paycheck. My husband was never a card holder on this acct. Can he do those things? I have seen nothing in writing , he continues to harass me on the phone, threatening me. I offered to make payments of $100 per month, he refused and said 'its too late for that'. He kept screaming at me, 'so your refusing to pay?'. I kept offering $100 a month. What should I do? Do I need an attorney? HELP!
2 Answers from Attorneys
Re: Credit Card Debt in collections
I concur with what Dan Press has already said. A couple of footnotes, however: first, the collecting lawyer's conflict of interest a problem for him and his client, not for you. Secondly, the Fair Debt Collection Practices Act applies in all states, being federal legislation. Attorneys are generally subject to the act when they're acting as debt collectors. Any debt collector has five days in which to send you written notice of your rights under the Act after any initial contact with you (including telephone calls). You have thirty days in which to send a letter demanding validation of the debt from the date the notice is sent to you. If no notice was sent, the clock doesn't start ticking, so you can send a demand for verification letter at any time. Do it, and send it certified, return receipt requested, addressed to the lawyer. In your letter, you can say that you deny the validity of the debt (because you believe you have an agreement modifying the terms of your contract with the lender) and demand verification. Most debt collectors don't respond to such letters properly. Any other action taken by the debt collector to collect the debt without first having provided the validation you demanded is also a violation of the FDCPA. If he continues to hassle you, and if you can swing it, what I'd do is succumb to the pressure, pay the guy what he's demanding, then sue him for the violation of the FDCPA. Make sure you've got a local attorney willing to take the case before you get too aggressive, though.
Re: Credit Card Debt in collections
You probably do owe the full balance due, as the hardship program is almost certainly entirely within their discretion to continue or not. Adding attorney's fees to the debt is likely something they can do. If you are correct that your husband is not on the account, they may not be able to put a lien on your house (it would be a judgment lien, after they sue and obtain a judgment) if you own the house by the entireties with your husband, and in any event they cannot garnish his wages (after a judgment, they could garnihs yours). By making such threats, the debt collector (lawyer) is in violation of the Fair Debt Collection Practices Act, entitling you to sue HIM (although not the creditor). Hire a lawyer, and ask the lawyer to threaten the creditor's lawyer with a FDCPA suit if he does not work out a payment plan you can live with. He will then have a conflict of interest, but I bet he ignores it and works out a deal with you.
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